Investors from China and India have become interested in buying properties in US states in a big way. Recovery of US housing sector is alluring them and they are eying property in the USA as a future asset.
The slump in housing sector in USA is on a back foot and certain states are witnessing a surge in real estate sales. In a trend that has caught attention of industry veterans, the US housing market is drawing investors from faraway countries, including India and China. Affluent Indians, like people from some other countries are investing their money in US real estate sector like never before. They are buying luxurious properties in areas like Miami, Manhattan and the West Coast. For Indians, who have traditionally invested in Gold are now switching to offshore properties to keep their wealth in safe zone.
As a matter of fact, a majority of Indians interested in buying a property in US states are eyeing areas in proximity to Silicon Valley. Other areas eyed by Indian property buyers include Philadelphia and Boston, where a section of student population in US universities is Indian. They are also opting for the areas frequented by Indian-American communities such as Queens and New Jersey.
The trend is reminiscent of the late 1980s when foreign investment in the US housing sector was strong. In last financial year, the total property sale to international clients in the USA was a whopping $92.2 billion. It was a 35 percent hike over the last year. While foreign buyers cover 7 per cent of overall home sales in the USA, Indians represent a majority of this section. Other foreign property buyers include Canadians and Chinese people.
The Chinese tend to the biggest investors in US housing sector, with a majority of them eyeing lavish properties and condos. Unlike the Chinese and Canadian buyers, a majority of Indians who buy property in the USA do so for the sons and daughters studying in US universities. After their offsprings complete studies, they often use the apartment for rent. For them it is a better investment than paying dorm fees for the tenure of study.
There are Indians who also buy condos in the US states nowadays. They settle for properties ranging between $6,00,000 to $8,00,000. They usually pay cash for property acquisition as it is difficult for them to obtain loan from US banks without credit history in the country. The US-based brokers have been capitalizing on the increasing interest from buyers from India. Wealthy Indian buyers in their middle age are also encouraged by growing instances of Indian culture and lifestyle in specific US regions.
As it is, a section of Indian real estate agents are trying to get into the scene. They want to utilize the buying process in the USA which is very organized. The realtors are also trying to make things easier for foreign buyers who are not well versed in nuances of property buying in the USA. The red tape and tax issues are relatively less in the US scene. They also target people who are working in technology companies on H1-B visa.
With realtors out to woo foreign investors, it may be a tad hard for first time buyers looking for property in the USA. It would be a prudent step for such property buyers to resort to services of realtor locator services. These agencies help property seekers get in touch with the most apt real estate agent or firm. Sites like agentace.com can be used to access these services.