 Here's a dose of positive news for the widely troubled real estate market: Foreign investments in U.S. in both commercial and residential real estate is continuing to increase. Thanks to the devaluation of the U.S. dollar and deflating home and property prices, foreign investments in United States real estate is on the rise.
With the Euro exchange rate hitting a record high on April 22 ($1.62), it's no wonder that foreign investments in U.S. commercial and residential real estate has increased. The attractiveness of the weak dollar has led to an influx of foreign investors that are bargain hunting for hotels, apartments, homes, offices, and warehouses. Thankfully, a flood of foreign investments in U.S. property does have a list of benefits. The first being that foreign investing helps to create new jobs, either by direct investing in business or real estate, or by providing cheaper forms of funding for domestic businesses to reinvest. Foreign real estate investments also play an important role in keeping mortgage rates low. While these foreign investments helped fuel the housing boom over the last few years, there is still an ample amount of funds to help lower mortgage interest rates. This, in turn, helps to encourage domestic investing and make real estate properties more appealing to investors. Because of its openness, size, and variety of investment options, the United States real estate market is increasingly attracting foreign investors. The weak dollar, softened economy, and troubled real estate market is causing an influx of foreign investments both commercially and residentially. Despite the plague of negative headlines outlining the real estate market, this tidbit of news may be the industry's silver lining. Our fingers are crossed. (Posted by K.Skowronski)
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