LOS ANGELES—Cries of panic are being heard around the nation about foreign buyers of U.S. real estate, especially homes, posing ‘risks’ to America.
This cry is not a new one. As economic downturns seemingly start to move into a stable mode, foreigners will be found investing in U.S. real estate, homes, and commercial properties. They are available at bargain prices, and the additional U.S. dollar devaluation against foreign currencies makes them an even better investment.
Foreign Homebuyers
Point2, a realty company based in Saskatoon, Canada, issued a report discussing the purchase of U.S. housing by foreign nationals.
The study provided interesting information gleaned from their website’s traffic: “Florida properties emerged as the lead attraction for foreigners online, followed by Arizona and Nevada real estate listings,” according to the Point2 report.
“Florida real estate listings captured 33.03 percent of the international traffic recorded to all U.S. states during the [third] quarter [2011]. Arizona attracted 15.15 percent and Nevada 8.22 percent,” stated the report. California came in fourth place.
Las Vegas ranked first, with 14.53 percent, in the ’top 20' list of U.S. cities searched online for properties by those living outside the United States. The report also stated that there are eight cities in Florida, four in California, and three in Arizona also on the top 20 list.
“Las Vegas real estate listings attracted 91.73 percent of all the international traffic recorded for the state of Nevada during the third quarter [2011], with Canada the leading source at 70.47 percent,” according to the report.
The recent study by Point2 revealed that there are various international homebuyers interested in the American market. The greatest interest comes from Canada. Canadians are buying up Arizona properties faster than any other nationality.
Marketing material in Arizona specifically targets Canadians.
Realty companies are wooing them by focusing on the state’s weather, especially the “300 days of sunshine” in a typical year. Another big attraction is the ability to “play golf on one of Phoenix’s hundreds of courses in the dead of winter,” as stated on CanadiansInArizona.net.
This is drawing many northerners to the southwestern desert state.
Proposed Law Offers Visa With Foreign Home Ownership
Sen. Charles Schumer (D-N.Y.) and Sen. Mike Lee (R-Utah) have co-sponsored the Visa Improvements to Stimulate International Tourism to the United States of America Act.
The bill, if passed, would require foreigners to buy a home costing at least $500,000 or a combination of two residences, one costing at least $250,000 and serving as a primary residence, and they would receive a three-year renewable visa in return.
Other requirements include living in the primary U.S. home for at least 180 days of the year and paying taxes to the United States.
This bill is meant to increase single-family home sales and encourage foreigners to take up residency in the United States.
According to records, the bill was introduced on Oct. 20, 2011, when it was also assigned to a congressional committee. No further action has taken place.
A Local Snapshot—Orange County California
RE/MAX realty salesperson Oakley Wright spoke about the current real estate situation in his territory, Orange County, California. Wright has been selling real estate for 25 years.
“Many foreign buyers are looking for housing in Orange County,” Wright told The Epoch Times.
Orange County has some unique buyer preferences. During the flight of the Vietnamese boat people to the United States, ethnic enclaves formed in various cities around the country. This particular situation exists in Garden Grove, long known as “Little Saigon.”
According to 2010 Orange county census statistics, almost 28 percent of the Orange County population is Asian. “Vietnamese homebuyers cannot find a home to buy in Garden Grove,” said Wright.
Foreigners’ buying criteria are not solely based on location. Wright said, “Many Korean families are reviewing local schools’ performance to determine where they want to purchase a home.”
In reference his own experience, Wright said, “Out of 14 offers for properties, 11 are from foreigners. They are generally purchasing homes in the $500k to $600k range.”
Chinese buyers as well continue to look to California for housing.
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