The US property market is increasingly providing homes for the brave investor – but mainly those that speak English.
Nearly seven out of 10 international property investors come from foreign countries that speak English as the main language, according to analysis of homebuyers from housing market research firm RealtyTrac.
The charge is led by Canadians, making up 45% of foreign buyers, while Britain and Australia provide another 10% each.
These are the three leading overseas markets for property investment in the USA.
Other nations clamouring to invest in the States include buyers from Dubai, Germany, Switzerland, France and China.
What buyers look for
But, found RealtyTrac, the most interest outside of Canada was from Europe.
The research also revealed what attracts property investors to America besides the common language for many – and the answers included:
- Good weather
- Economic and political stability
- Lifestyle and culture
- Rising property prices giving a return on investment
In fact, says the research, America holds such a draw for some wealthy investors that interest in US property has soared by more than 350% in Dubai, doubled in many nations and overall, shows a 95% average rise in the top 10 nations with investors buying homes in the country.
Daren Blomquist, vice president of RealtyTrac, said: “The US housing market was broken and is on the mend but still has some way to go. International buyers with cash available can see now is the right time to buy before rising prices start to pinch at profits.
“Many buyers are from countries with large numbers of exceptionally wealthy residents who do not have to worry about financing their purchases. Many transactions with foreign buyers are cash sales that allow them to negotiate the best prices.”
What investors get for their cash
The firm deals mainly with foreclosed homes after the owner has fallen into financial problems.
More than a million foreclosed properties are listed on the site. The number of homes facing repossession was down nearly a quarter in March 2014 compared with the same time a year ago.
Home sales have stalled slightly in 2014, but the average price of a foreclosed home is just $113,000 – or 35% less than a non-distressed property sale.
Among the most popular places to buy a foreclosed home include Chicago, Houston, Las Vegasand Miami.
Prices range from just $20,000 in Houston to $250,000 in Chicago.