The dollar slide making U.S. real estate a bargain to foreign investors.

[goofer]

I would like to ask of the general audience, especially those involved in real estate sales, is if there has been an increase in foreign buyers in SoWal. It would seem that the U.S. dollar decline would make U.S. real estate a relative bargain for people in Euroland or Asia. ( Remember when the Japanese were buying up premiere properties in NY, CA and Hawaii in the early 80's because the yen was so strong, could the same phenomenon happen now because the dollar continues to slide ). I know it ended badly for the Japanese but that was because of a host of reasons mostly related to domestic Japanese issues. ( Accounting and banking mostly ) I am interested in any actual or anecdotal evidence that you may provide. ( thank you kurt for the help ).

 

[SHELLY]

I would like to ask of the general audience, especially those involved in real estate sales, is if there has been an increase in foreign buyers in SoWal. It would seem that the U.S. dollar decline would make U.S. real estate a relative bargain for people in Euroland or Asia. ( Remember when the Japanese were buying up premiere properties in NY, CA and Hawaii in the early 80's because the yen was so strong, could the same phenomenon happen now because the dollar continues to slide ). I know it ended badly for the Japanese but that was because of a host of reasons mostly related to domestic Japanese issues. ( Accounting and banking mostly ) I am interested in any actual or anecdotal evidence that you may provide. ( thank you kurt for the help ).

IMO the foreign buyers aren't going to ride to the rescue of the US housing market in large numbers anytime soon (if ever):

(1) In keeping with Asian culture, Japanese tend to learn from mistakes of the past (i.e., how they got crushed in their own "home grown" housing bubble and the Hawaiian real estate game as well) and tend not to repeat them. (Unlike some Americans who in a "Homer Simpson-like way" never learn--it's always "different this time".) Economist: The Global Housing Boom

(2) The Brits and Aussies are licking their wounds from their own recent real estate crashes.

(3) The other Euro economies are having economic problems of their own, but they are investing in some cheap vacation real estate closer to home in areas of the old Eastern Bloc around lakes, forests and whatnot.

(4) The foreign press from South Africa to Sweden to Saudia Arabia is peppered with articles about the US "Real Estate Bubble" and how the prices are about to crash (their words, not mine) which may give many pause before sinking their hard-earned Rand, Krona or Riyals into US soil.

(5) The BIG money are actually hedging their US real estate positions by buying property in Brazil, India and China believeing the US economy is about to tank: Hedging US Real Estate

(6) With the exception of the Americans, the rest of the folks in our world are into "saving," --not "spending." The "baby boom retirement rush" doesn't apply to folks living in Singapore or Peru. Sure there will be foreigners who will buy real estate, but at this juncture the majority will be more apt to look for places closer to their homes or properties selling at bargain basement clearance prices--they are not in a rush...and they can simply tell by looking at the ever-expanding listings for land, homes and condos that opportunities are not going to run out anytime soon.

IMO

 

[Jellyfish]

I was wondering where all the "fast money" is going now (tech stocks in late 90s, real estate in the last few years, etc). Makes you wonder what the
next "everybody's doing it" investment will be.

 

[SHELLY]

I was wondering where all the "fast money" is going now (tech stocks in late 90s, real estate in the last few years, etc). Makes you wonder what the
next "everybody's doing it" investment will be.

Buzz on the street: Commodities & Precious Metals

(It's already been there for the last year or so) ;-)

 

[Smiling JOe]

Buzz on the street: Commodities & Precious Metals

(It's already been there for the last year or so) ;-)

Nothing like pork bellies and gold. :funn:

 

[GreenWaveDave]

I was wondering where all the "fast money" is going now (tech stocks in late 90s, real estate in the last few years, etc). Makes you wonder what the
next "everybody's doing it" investment will be.

Asia (China) and India are all the rage as well. I personally prefer beach property in SoWal though.

 

[Bob]

Next 2-4 years...... real estate tax certificates

 

[GreenWaveDave]

Next 2-4 years...... real estate tax certificates

Good call. There's a book on this called The 16% Solution. I read it a few years ago. May need to brush up.

 

[SHELLY]

Nothing like pork bellies and gold. :funn:

Gold...YES

Pork Bellies...NO

A play on the Chicago Merc? SWEET!!

 

[goofer]

I cannot help but bring up a point I made a year ago and that is the weakness of the US dollar. America is really on sale now !! The value of the dollar vs the euro has collapsed. Have any of the R/E agents out there seen any foreign interest in property here ? Or have you heard of foreigners looking in Naples or Boca or other areas of Fla ? If I was an agent I definitely would explore hooking up with an overseas agency to market properties here in SoWal. America is still the safest and most secure nation on the planet and if you want to own property, we seem also to have the most "owner friendly" laws as compared to other countries. And besides we have the best beach and friendliest people !! I definitely would recommend that agents investigate a "foreign connection".