A Modern Day Goldmine: International Real Estate

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INTERNATIONAL REAL ESTATE INVESTING FORECAST

In the decades to come, investing in international real estate could be a goldmine for US investors. With a largely restricted supply and continuous improvement, capital appreciation is almost limitless. Jim Rogers, a renowned investor has this to say about international beachfront, “More of it is not being made.” Point well taken, Jim.
Presently, the United States is not among the major countries with top-ranking real estate opportunities. The U.S has passed its economic growth phase, at least for now, motivating investors to search for real estate opportunities overseas. Outside the borders of America, international real estate is booming. Such opportunities include, but are not limited to:
• Fast growing frontier markets
• Established regions with healthy tourism
• Long-term growth potential relative to cheap housing prices

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Five Top Advantages of Acquiring International Real Estate:

1. You are fully in control. You have absolute power to buy, develop, rent or sell your property. You can have it tailored to suit your requirement and your schedule.
2. You can maintain steady source of income from overseas. Investing in international real estate will provide you with an opportunity to diversify your source of income and appreciate foreign currencies.
3. It provides a great hedge against inflation. Apart from it just being a source of foreign income, it is termed a hard asset. This means it maintains an intrinsic value regardless of the individual currency’s change in value.
4. Real estate is multi-purpose. International real estate investment is often purchased as speculation. While waiting for surrounding urban development to arrive, consider participating in government forestry programs and agriculture. For example, in China, the newly employed 2.5 million people will definitely cause an increase in the demands for meat and other food stuffs. This translates to more land needed to cultivate animals and crops along with wood for new residential and commercial construction projects.
5. Real estate can be fun! It is fun to invest in international real estate. You can use your investment as a part-time residence, a vacation getaway, or for personal retreat. It’s all your choice. International real estate constantly increases in value, generates consistent returns and secures your net worth.
Investing in real estate gives you control of a huge asset, with relatively low sums of capital invested. Investing in international real estate is also a sure way to secure your capital. You have a tangible asset that is productive and useful. Throughout history, land has retained its position as a great defense against turmoil and inflation. A place to live in is one thing every human seeks. Thus, no matter the fluctuation in prices, your international property will continuously maintain its demand.

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Gene Mock is a Certified International Property Specialist working hard in the Washington DC area to promote high standards, codes of ethics, and fair trade between international home buyers and those professionals representing them. He will show you how international real estate can fit into your financial plan and goals.

Call Gene Mock at 703-342-8100 for more information about international and local real estate in the DC Metro Region.

Gene Mock Realtor http://northernvirginiarealty.com/

A Modern Day Goldmine:International Real Estate

 

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Canadian Real Estate Investors

Canadian Real Estate Investors

Canadian Real Estate Investors Are a Force to Be Reckoned With

As more focus goes toward the number of Chinese real estate investors buying up property in the US, it’s easy to lose sight of the fact that this is just one of myriad factors. There are plenty of other international real estate investors out there. Europe and Australia are both heavily involved in the American real estate industry. However, you need to look closer to home to find the second largest such group – Canadians were, until very recently, the number one buyers of US real estate. Today, they’ve slipped to second place, but they’re still playing a major role.

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Canadians Investing in Commercial Real Estate

One of the high points for Canadians investing in US real estate is the commercial property sector. According to a November 2014 story from Reuters, “Canadian investment in US commercial real estate is on track to hit record levels this year, once Canada’s second largest pension fund closes a $2.25 billion deal to buy a landmark Manhattan property.” The first three quarters of the year saw almost $8 billion funneled into the US economy from Canada through commercial real estate. Buyers aren’t limiting their purchases to the Big Apple, though. Other hot spots include California, New England and other highly populated areas. The key to their strategy is buying multifamily properties, but other commercial real estate is on the table as well.

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Canadians Also Investing in Residential Property

Canadian real estate investors aren’t limiting their efforts to commercial property alone. Residential real estate is also hot, particularly in highly urbanized areas. A Vancouver couple recently purchased a Brooklyn brownstone with three units, and plans to rent all three to different tenants. The rent payments on the brownstone are expected to be enough to cover the Brooklyn property’s mortgage, as well as the payments on the couple’s home on Vancouver’s Upper East Side.

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Why Do Canadians Invest Internationally?

So, why are so many Canadian’s turning to their southern neighbor for their real estate investing needs? Really, it comes down to prices. Canadians are able to get into the market for less, and are then able to realize higher profits on rent than if they kept their money at home. It’s really a win-win for everyone involved. Capitalization rates are another big factor here. Business Vancouver reports that the typical capitalization rate in the US is up to 7.5%, while Canadian rates have decreased from 5.3% to 5.1%.

A Lack of Options at Home

One element that’s pushing Canadians south of the border is the fact that there’s a lot of available property in the US. That’s not so in Canada, where the majority of the property is tied up with domestic pension funds, limiting the availability of property on the open market, and forcing investors to look elsewhere to grow their wealth.

As with any other international real estate investing scenario, the Canada-US trade is subject to change at any time. A slipping Canadian dollar is one element that many experts expect to start putting the brakes on the situation, although it has yet to slow things down at all.

Source:

http://www.theglobeandmail.com/life/home-and-garden/real-estate/canadians-still-mining-the-us-real-estate-market/article14434364/

http://www.reuters.com/article/2014/11/19/us-canada-realestate-usa-idUSKCN0J309620141119

http://www.biv.com/article/2014/10/canadian-real-estate-investors-head-us/

Canadian Real Estate Investors

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