International Money & Foreign Investments, Where are they Buying?

The United States is a popular tourist destination for both domestic and international visitors! According to statistics, international visitors to the United States reached 78 million in 2018, with that figure expected to rise to 89 million by 2022!

There are many reasons why people travel to the United States that you might not think of if you live here. Some people visit for business or to see the major attractions, such as Disneyland Parks, Hollywood, Las Vegas casinos, National Parks, and so on.

In 2018, the United States welcomed nearly 80 million international visitors, with New York State ranking first. While New York City is the most popular tourist attraction in the state, other popular attractions include Niagara Falls and scenic byways in the Adirondack and Catskill mountain ranges.

Florida, also known as the Sunshine State, is the second most visited state by international visitors. The Everglades National Park, Miami Beach, and Disney World are just a few of the many attractions that draw international visitors to the state. Beaches, water sports, cycling, and hiking are popular tourist activities all year.

While Hollywood remains a popular tourist destination, visitors to Los Angeles and San Francisco can easily access nearby mountains, beaches, and deserts. California has more national parks than any other state in the country.

With international visitors spending $215 billion in 2018, the United States is by far the largest recipient of travel dollars. That amounted to 15% of the world’s total travel expenditures that year.

 

Real Estate in Arizon, USA

Not only people are interested in visiting the country for its tourist attractions but because of the real estate as well. The Profile of International Transactions in the United States in 2022 Residential Real Estate presents data on REALTOR® transactions with international clients who bought and sold U.S. residential property between April 2021 and March 2022.

 

Foreign buyers prefer to buy property in the United States because they believe the real estate market in cities such as Phoenix, Arizona is stable. According to a National Association of Realtors study, international sales of US homes are at their highest level in recent years. Property ownership in the United States is a significant investment. Foreigners are buying homes not only to live in but also to rent out.

 

In the last five years, 70% of Realtors have reported that international clients have contacted them with the intention of purchasing a property. International buyers spent $104 billion on American real estate from April 2014 to March 2015.

 

Arizona ranks third in terms of international sales. The top two are Florida and California. Foreigners buy a lot of homes in Texas and New York. These countries account for 61% of global sales.

 

Because of the warm weather, Arizona real estate is popular among foreigners. Other factors come into play as well. This includes the distance to their home country, whether they already have relatives there, and whether there are opportunities for both jobs and education. There are five countries that make up the majority of the 68 foreign countries that have purchased homes in the United States. Canada, China, Mexico, India, and the United Kingdom are among them. These countries account for more than half of all real estate purchases, with Canada and China leading the way.

Not everyone from other countries enjoys purchasing in Arizona. Chinese buyers are not among the top buyers of Arizona real estate. The majority of Chinese buyers make their purchases in California. They also make purchases in Washington, New York, Massachusetts, Illinois, and New Jersey.

Canadians account for 46 percent of the foreign home buying market in Arizona. They are more likely to buy a home for vacation purposes or as a rental property. They are also purchasing condos and apartments rather than single-family homes. Many Canadians are also buying real estate in Florida. Instead of Miami, they prefer the Sarasota and Venice areas, as well as Palm Beach.

Foreign buyers play a significant role in the real estate market. They spend just under $500,000 on a home on average. Other buyers paid an average of $255,000 for their home. They spend more money on furniture, eat out more frequently, and attend more sporting events, in addition to paying more for a home. This is beneficial to the economy. They are not only spending more on the home, but also on other things. Profits for businesses are increasing as a result of international buyers.

With this being said, realtors must expand their skill sets when working with foreign buyers. They must have a global perspective and prior experience working with people from other cultures. They must learn various real estate practices in order to get along with others.

 

SOURCES:

 

https://redhawkpropertymanagement.com/foreign-buyers-increasingly-attracted-arizona-real-estate/

 

https://www.nar.realtor/research-and-statistics/research-reports/international-transactions-in-u-s-residential-real-estate

 

https://share.america.gov/top-3-u-s-states-international-tourists-visit/