WHO IS INVESTING?

In recent years the US real estate market has seen the highest amount of

investing from foreign investors in Germany, Britain, Canada, Japan and

the Netherlands. Germany was the strongest player in 2004 reporting

over $4 billion in investments for that year.

Where are they buying? In the past Europeans were drawn to East Coast

properties and Asians to the West Coast. Now, because of the lower

interest mortgages and a weak dollar, foreign investors are picking up

property, commercial and residential, in all major US cities, including

Chicago and Las Vegas.

CANADIANS AND AUSTRALIANS BENEFITING TOO

Even neighbors north of the border in Canada are seeing the benefits.

Although the Canadian dollar has been weaker than the US dollar for

years, many Canadians own vacation homes in the US, particularly in

Arizona. They are one of the highest volume investors in the US real

estate market. Whether buying or selling, Canadians are enjoying

stronger purchasing power while the US dollar remains low.

Some Canadians, instead of buying, are following the lead of foreign

investors who are selling current US properties in preparation for buying

at an even better rate if the US dollar continues to fall.

While Germans are slowing down in the volume of investments due to

recent caps, Australians are picking things up. Australia, with one of the

largest pension funds in the world, must look beyond their own real

estate market for investment opportunities. Investing in US real estate

permits them to invest their huge national pension funds into diversified

holdings.

HOW LONG WILL IT LAST?

Although the current mortgage rates are an appealing draw, they will not

remain low indefinitely. However, lower priced properties such as

foreclosures would make the financial investment potentially lucrative for

foreign investors despite the interest rates as long as the dollar remains

low.

Foreign investors looking for long run profits anticipate an increase in the

US dollar as an incentive to buy. Investing while the euro is strong and

the US dollar is weak means they can pick up real estate for a relatively

low investment. Already some countries are seeing up to a 35% discount

based on the favorable exchange rates. However, the aim is to hold the

property until the US dollar is strong and then the conversion to euro

would be highly profitable.

With the availability of properties online it is easier than ever for investors

to find properties without crossing an ocean. Some of the best deals,

such as foreclosures, can be researched and purchased without coming

to the US. This makes investing in US real estate a great opportunity for

investors no matter where they live.

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