25% of international investors buy a home in Florida
Category:Home Max Realty International BlogORLANDO, Fla. – Sept. 8, 2014 – U.S. real estate appeals to foreign buyers, and a large number of them settled on property in Florida – about 25 percent of all international U.S. home purchases to foreign buyers, according to the 2014 report “Profile of International Home Buyers in Florida.”
In the 12 months that ended in June 2014, the dollar value of purchases in Florida hit $7.97 billion – a 24 percent increase over the amount spent ($6.43 billion) the year before. About one in 10 property purchases (10 percent) in the state (26,500) involved a foreign buyer, an increase from 9 percent the year before.
Two major trends drove the increase in foreign buyers: A continuing recovery of the world’s economy and the affordability of U.S. properties.
U.S. and Florida residential prices remain affordable to most international homebuyers, and they buy property that, overall, costs more than the mean price paid by domestic buyers. In Florida, 76 percent of all Realtors cited less expensive property as a top reason for purchase.
Countries
Canadian buyers accounted for the largest share of international clients (32 percent), followed by:
• Western Europe: 24 percent; primarily from the United Kingdom, France and Germany
• Latin America/Caribbean: 23 percent: primarily from Brazil and Venezuela
• Asia: 10 percent; primarily from China
Other key findings:
• 52 percent of Florida Realtors reported international clients (national average: 28 percent)
• 19 percent of Florida Realtors with international clients reported 6 or more clients (national average: 12 percent)
• 20 percent with international clients said they accounted for 26 percent or more of their transactions (national average: 15 percent)
• 29 percent reported that their percentage of international clients increased in the last five years (national average: 20 percent)
Market success
Realtors dealing with international clients say the key to success is understanding the culture, concerns and language of potential foreign clients; reaching out through personal contacts and online tools; and assisting potential foreign buyers through the regulatory and financial process, especially for agents on the buy-side of the transaction.
