Foreign Investors Making More and More Real Estate Deals in Florida: A Trend That Should Continue into 2011
This week, the Sun Sentinel reports that real estate experts are predicting 2011 to be another gloomy year for Florida real estate, hopefully with a turnaround coming in mid-2012. (This forecast coming primarily from Lewis Goodkin and Moody's Analytics.) Which may help explain why the South Florida real estate market seems to be growing in international popularity.
For example, the Manchester Evening News had an article of interest to its British circulation this week: right now, Florida real estate appears to be a bargain for our English friends. Why?
The British interest rates are holding steady at a low rate, while Florida real estate prices continue to slide. And these folk know a good deal with they see one. Apparently Manchester's Bridging Finance alone has loaned the British pound equivalent of $3,080,714 since June 2010 to British investors seeking to buy property here in the United States (with lots of those deals here in Florida): this is almost 25% increase in foreign investment in just one year's time.
Joining with the European investors are savvy buyers from Central and South America. The Toronto Star reported recently on this Florida foreign investment trend. Canadians are buying here. Australians are, too.
There is a lot of foreign interest in South Beach condos especially -- and a reported focus on those priced now between $50,000 - 100,000. Miami Today reports a 62% increase in downtown Miami condo sales from January - September 2010.
Is this bad news or good? There are those that will argue both sides. However, it's an obvious reality that these global investors are bringing investment money into the local economy, and these properties otherwise might well be setting there vacant and blindingly red on American balance sheets. Given the predictions that the Florida real estate market is not booming back in 2011, international investment here has to be seen as a good thing.