The Worm Turns

Whatever you have heard about the death of The American Dream is absolutely erroneous.

Well, as long as you aren’t American.

Huh?  Yeah, the foreclosure inventory in highly desired areas is being bought up by foreign investors.

And hey, it’s not all that bad. The President did tell Joe The Plumber that he thought that “we should spread the wealth around”, remember?

Okay so that’s a sarcastic shot at The President.  The truth is, that congress is really to blame for this one.

The new program is aimed at attracting foreign investment by granting a Visa to international buyers who are willing to plop down a minimum $500K for non-commercial real estate.

It is intended to spur the housing market even further than the small boost it has already received from such investors in areas such as Miami Beach, Florida.

Over the past 12 months, off-shore money amounted to $82 billion that was directed at residential real estate.  That was a 24% increase from 2009 and it represents about 85 of all US sales.

That is a huge chunk of the market and it provides you some insight into who outbid you on your dream home with that cash offer that was $25K less than yours.

Depending on what end of that stick you are holding, this could be a good thing or a bad thing.  And part of the deal for that precious US visa is paying cash.  In return, they get a 3 year stay.

And the trend is likely to continue.  You see, whenever you plan a vacation, it is always a good idea to visit a place where you have favorable exchange rates on your dollar.

It is no different for foreign travelers looking for the same deal and it does not appear that the dollar will be strong anytime soon.

Yes, the worm has turned, indeed.

Appraisal Source is a New York based residential real estate appraisal firm. Their highly-qualified appraisal staff of New York City and Long Island appraisers provide independent residential real estate appraisals for a variety of purposes.

Here’s the original article…Foreign buyers scooping up U.S. homes

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