Overseas Investment At All-time High

Low prices and a recovering economic outlook are encouraging more and more overseas property buyers into the American market says the latest annual survey of the Association of Foreign Investors in Real Estate (AFIRE).

The survey, which was conducted in the last quarter of 2011, interviewed a group of AFIRE members who, between them, hold around $338 billion of USA real estate in their portfolios. It showed that they plan to increase their investment in the U.S.A. even further in 2012. The survey highlighted that many investors still regard the USA to be one of the most secure and stable global markets.

As everyone knows by now, prices of American real estate have crashed, to levels of around 10 years ago, with up to 70% off prices from peak in some states. In fact, prices can be around 50% of build cost – clearly an anomalous situation that will correct. Purchase prices may be very low, but the rental market is booming as more and more Americans decide to rent instead of buy. In Orlando’s condo market it’s virtually unanimous that bottom has been and gone. But that doesn’t mean there aren’t still plenty of great deals to be had.

The perfect profit storm for foreign investors- very low prices with strong rental demand – will eventually disappear. Investor activity within the foreclosure market is already starting to stabilise prices and, in some instances, even push them up.

Don’t be one of those who looks back and wishes “If only I’d invested during the crash.” MLS inventory is down from about 16,000 units a year or two ago to about 9,000 now. That means supply isn’t far from being unable to keep up with demand. In the Orlando condo market, this is already happening as more and more investors fight over smaller and smaller pools of deals.

For more information on Orlando condo deals including foreclosures, short sales and property management, call Condo Metropolis on 407-290-3408.

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