It doesn’t seem that anything can put off overseas property buyers from heading to the United States of America. They seem to be taking everything from a divisive President to price rises caused by a strengthening dollar in their stride, as they continue to march stateside in the firm belief that the US is a safe, secure and potentially lucrative place to live, work and invest.
How much are overseas buyers investing?
Back in 2015 overseas buyers were responsible for purchasing $103.9 billion worth of residential property in the US. If you think that sounds like an astronomical figure, wait until you hear the total for the 2016-2017 financial year. During this period foreign investment skyrocketed to $153 billion – a massive 49% increase from the previous year, according to the National Association of Realtors (NAR).
Lawrence Yun, NAR’s chief economist, explained that “The political and economic uncertainty both here and abroad did not deter foreigners from exponentially ramping up their purchases of US property over the past year”.
On average overseas buyers paid $302,290 for a property in the US – a 9% increase compared to the previous year’s figures ($277,380). Around 10% of these overseas home hunters paid over $1 million for their perfect pad, while 44% of transactions were cash purchases.
Where are overseas buyers investing?
So where did this army of overseas property buyers head once they made it to US soil to begin their search? Florida, California and Texas remain the perennial favourites, with the Sunshine State accounting for the largest amount (22%) of foreign investment in residential property. It’s no surprise that they gravitate to Florida’s sun-drenched shores. Whether it’s the thriving, culturally diverse metropolitan area that is Miami, the palm-lined promenades and Venice-like waterways of Fort Lauderdale or the theme park oasis that is Orlando, Florida offers something for everyone.