Florida Real Estate: Tales of Its Death Have Been Greatly Exaggerated
Comment: In a recent interview, Steve Hagenbuckle, Managing Director of TerraCap Partners states that Florida real estate, one of the hardest hit markets in the country will be one of the first to emerge. Foreign buyers from Germany, Canada, UK and China, among a host of others are beginning to descend on Florida to scoff up deals on real estate that have not been seen in years. While residential real estate is probably going to be the most significant beneficiary of the activity, commercial properties are also attractive, because of the weak US dollar against much of the world’s currencies. I would expect that most of the international buying activity in our area will be centered on coastal residential real estate in Sarasota, Manatee and Pinellas Counties, but there are increasingly compelling arguments for international buyers to consider commercial real estate, as well. Net lease properties with credit rated tenants are at their highest CAP rates in years and could offer outstanding value.
Excerpts:
(3:25 min mark)
Steve HagenBuckle (SH): “ …as we talked before, the southeast, right now as far as in the last 12 months, has seen 47% of all international investing has been in the southeast on the residential side. The State of Florida has taken on 26% of all international investing on the residential home side. So, Over 1 out of every 4 homes bought by international investors (in the US) is bought in the State of Florida. “
Bloomberg TV (BT) : “Where is the money coming from , you mention Canada, …we talked a little bit about China, what about for example the UK? Are these people actually coming to use the property?”
SH: Yes, they are vacation homes as well as investments….mostly vacation homes. They are seeing that there is so much affordability that they may not see this opportunity for a long, long time. So, they are viewing it as “now is the time.” We have a currency that is strong than the dollar currency. And, we feel that if the dollar is weakening or has the chance to do so, now is the time to move. We are seeing a lot of interest from Latin American countries. 54% of Germans, when they buy real estate in the US, they buy in Florida. And 37% of the folks from Canada when they buy real estate in the US, they buy real estate in Florida.
International Buyers to Prop Up Florida Real Estate Market?
Florida Real Estate: Tales of Its Death Have Been Greatly Exaggerated
Comment: In a recent interview, Steve Hagenbuckle, Managing Director of TerraCap Partners states that Florida real estate, one of the hardest hit markets in the country will be one of the first to emerge. Foreign buyers from Germany, Canada, UK and China, among a host of others are beginning to descend on Florida to scoff up deals on real estate that have not been seen in years. While residential real estate is probably going to be the most significant beneficiary of the activity, commercial properties are also attractive, because of the weak US dollar against much of the world’s currencies. I would expect that most of the international buying activity in our area will be centered on coastal residential real estate in Sarasota, Manatee and Pinellas Counties, but there are increasingly compelling arguments for international buyers to consider commercial real estate, as well. Net lease properties with credit rated tenants are at their highest CAP rates in years and could offer outstanding value.
Excerpts:
(3:25 min mark)
Steve HagenBuckle (SH): “ …as we talked before, the southeast, right now as far as in the last 12 months, has seen 47% of all international investing has been in the southeast on the residential side. The State of Florida has taken on 26% of all international investing on the residential home side. So, Over 1 out of every 4 homes bought by international investors (in the US) is bought in the State of Florida. “
Bloomberg TV (BT) : “Where is the money coming from , you mention Canada, …we talked a little bit about China, what about for example the UK? Are these people actually coming to use the property?”
SH: Yes, they are vacation homes as well as investments….mostly vacation homes. They are seeing that there is so much affordability that they may not see this opportunity for a long, long time. So, they are viewing it as “now is the time.” We have a currency that is strong than the dollar currency. And, we feel that if the dollar is weakening or has the chance to do so, now is the time to move. We are seeing a lot of interest from Latin American countries. 54% of Germans, when they buy real estate in the US, they buy in Florida. And 37% of the folks from Canada when they buy real estate in the US, they buy real estate in Florida.