Since I moved to Denver from Buenos Aires in 2005, I have connected to the expat community though different organizations. Through the years I have stayed in contact with many wonderful people from dozens of different nationalities. No matter where you are in the world, buying a home is one of the most important ways to put down roots, to feel part of the community. It is also a great investment.
I am passionate about serving this community. I understand their needs. I have been in that "not-so-comfortable-place" where despite speaking the language everything seems different and unfamiliar. Buying property is different in Europe, South America, Asia or here in wonderful Colorado. Serving international clients requires specialized knowledge on the part of the REALTOR®relating to immigration, tax, property, financing, and other regulations. Cultural affinity andknowledge of client preferences also play an important role in nurturing relationships withinternational clients.
I am always looking for good information to better understand international buyers. Here's some really interesting information about U.S. residential real estate sales to international clients that the Research Division of the National Association of REALTORS® has been collecting since 2009 to provide a profile of the origin, destination, and buying preferences of international clients, and to identify the challenges and opportunities faced by REALTORS® in serving foreign clients.
The term international or foreign client refers to two types of clients:
o Non-resident foreigners (Type A): Non-U.S. citizens with permanent residences outside the United States. These clients typically purchase property as an investment, for vacations, or othervisits of less than six months to the United States.
o Resident foreigners (Type B): Non-U.S. citizens who are recent immigrants (in the country less than two years at the time of the transaction) or temporary visa holders residing for more than six months in the United States for professional, educational, or other reasons.
HERE ARE SOME FINDINGS...
Foreign buyers purchased $153.0 billion of residential property from April 2016—March 2017,an increase from $102.6 billion during the previous 12-month period (April 2015—March 2016).The dollar volume of foreign buyer purchases accounted for 10 percent of the dollar volume of existing home sales, an increase from the eight percent share during the previous period.
Foreign buyers purchased 284,455 residential properties, an increase from 214,885 during the previous 12-month period. The number of units purchased made up five percent of existing home sales, an increase from the four percent share during the previous period.
Foreign buyers who primarily reside outside the United States (non-resident foreign buyers)accounted for 42 percent of all foreign buyers, while recent immigrants and foreign buyers who reside in the United States on work, student, or other visas (resident foreign buyers) accounted for 58 percent. This composition is about the same as that of the previous 12-month period.
The average price of properties purchased by foreign buyers was $536,852, more than the average price of $277,733 of all U.S. existing home sales.
The median price of properties purchased by foreign buyers was $302,290, also more than the median price of $235,792 of allU.S. existing home sales.
China remained as the top origin of foreign buyers ($31.7B), followed by Canada ($19.0B), theUnited Kingdom ($9.5B), Mexico ($9.3B), and India ($7.8B). The bulk of buyers from China,India, and Mexico were resident buyers, while most buyers from Canada and the UnitedKingdom were non-resident buyers.
Nearly half of foreign buyers purchased the property as a primary residence.
Most non-resident foreign buyers made an all-cash purchase (72 percent), while a smaller fraction of resident foreign buyers paid all-cash (35 percent).
With any business or economic transaction, price is an important factor to consider. About a third of respondents reported that their client viewed U.S. home prices to be less expensive than prices in the home country, a view not much changed from last year.
Author:Patricia Belaire Phone: 303-549-5573 Dated: December 28th 2017 Views: 320 About Patricia: As a real estate broker and real estate investor, Patricia Belaire understands the importance of rea...
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