Recent surveys have confirmed once again that, at least in the eyes of international investors, US property market remains very attractive, and others are also looking at certain areas of Europe as well.
Where should you target in finding international investors, one simple equation is to target at overpriced property markets:
China: Chinese property market is considered as way overpriced in any standard, and is generally beyond average investors’ affordability. As the result, the riches are getting richer, but for ordinary families, it is becoming impossible to buy their first home.
Chinese families are also highly interested in moving to US for immigration, and most families have good savings on hand, as Chinese culture prefers to purchase properties with as much as cash as possible.
This makes US property markets highly attractive to 2 types of Chinese investors: 1) The wealthy Chinese families who are looking at developments, international investments and luxury properties and 2) Ordinary families who wish to buy into their first homes and usually will move or send their children to USA in near future.
Hong Kong property buyers have similar characteristics as Chinese investors, but generally, they are more sophisticated as they have lived in North America for over 30 years, many even longer. Hong Kong property investors are more mature in North America, and have been involved in significant land developments, residential developments and mega-shopping centres. They are ideal investors if you have projects for developments.
The Taiwanese property market is also overpriced in the international standard and it is unaffordable for many families. Similarly, Taiwanese investors have settled in United States for over 20-30 years, most of them are concentrated in Northern California, Seattle, Los Angeles, New York and Boston.
Many Taiwanese investors are now buying into US properties for their relatives and friends, as many of them also have dual-citizenship. Taiwanese wealth has been increasing due to their successful investments in China, as well as success in exporting high-tech and green products into US markets.
Australian Property Investors
The rationale for Australian investors is quite different. Australian property investors have good saving as the law requires 20% to 25% down payment to purchase a property in Australia, plus significantly higher stamp duty, which can add up to $50,000 to $100,000 depending on the state and value. With average property price around $700,000 for a small house in Australia, this means, would-be property buyers will have at least $100,000 to $150,000 in savings, just for down payments.
For many states in the US, this is sufficient to buy a decent house in Florida, Georgia or Texas or at least enough to buy a very nice home in the US. Australian property investors are now fast emerging as the international property investors into the US markets; most of their investments are focused in Florida and California at moment.
Lifestyle and immigration are the 2 main reasons for British nationals to invest in the American property market. As we know, a large number of vacation homes have been bought by UK investors as their holiday homes. Travelling and living cost in the US are considerably lower than the rest of the world, and many British families will travel to US 2 to 3 times a year.
There has also been significant increase of British nationals moving to US, New York was once the popular destination; but there had been increase in the southern states particularly Florida, North Carolina, South Carolina and Georgia due to milder weather over there.
Here are just some investors for you to think about, there are of course, other international investors such as Canadians, Brazilian, German and Israeli investors – we will talk about them in later articles.
Check out our Global Real Estate Investors Guide onhttp://researchwhitepaper.com
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