Kenai Residential Real Estate Part Of Global Picture

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Foreign View:
U.S. Homeowners Sitting Pretty

Foreign Buyers Snap Up Residential Real
Estate

For quite a while, Kenai residential
real estate holders – that is, homeowners
– haven’t had to work very hard to come up with a description for the
U.S. real estate market. ‘Lousy’ certainly came to mind. ‘Bleak’ was a strong
contender. ‘Cautiously optimistic,’ at best a distant third.

So June 2012 Wall Street Journal
report came as a quiet reminder that, for serious-minded investors who view our
situation from a less-involved perspective, our residential real estate outlook
is neither lousy nor bleak. In fact, the combination of lower
residential prices and the international currency environment has created a
‘property-buying binge’ by Asians, Canadians, Europeans and Latin Americans –
more than 60% of whom pay in cash.

“There’s this international view that
America is on sale,” according to one property manager. He should know; he’s an
executive whose Chicago-based company buys foreclosed homes and manages them
for investors. A year ago, all of his investors were domestic. Now, one in five
is foreign.

Whereas before, most foreign residential
real estate investors were interested in ‘trophy’ properties to enhance their
personal prestige, the new onslaught is coming from buyers who see that they
can earn high returns by buying here, renting, then reselling in the future
when the market rebounds. It seems that in many countries, a residential real
estate downturn is expected, but has yet to occur. In their estimation, ours is
already history.

It looks like “a gift,” according to one
developer, who judges that an oceanfront condominium in Rio de Janeiro sells a
level 50% higher than an equivalent property in Miami. International or
domestic, investment money is always drawn to bargains — but when bargain
basement prices are combined with the perceived safety represented by U.S.
residential real estate, the lure is apparently irresistible.

FOREIGNERS SNAP UP PROPERTIES IN THE
U.S.
” was Nick Timiraos’ headline, with a caption that read, “To many
Americans, plowing money into real estate has never looked like such a risky
venture. But to many foreigners, U.S. housing has never looked like a smarter
investment
.”

Thanks, Nick, for giving us some outside
perspective; I guess we can adopt the ‘cautiously optimistic’ view with a lot
more confidence. If you have been waiting on the sidelines to make your own Kenai residential real estate investment, I hope
you will give me a call when you decide that now is the time. I’m standing by
to help you find the property you’re looking for!

Real Estate Websites by Cherie Young