More banks in the United States are offering finance to foreign buyers of holiday homes, which offers several advantages, says the boss of specialist property investment firm Brookes & Co
As growth in the United States real estate market slows, its banks are now targeting overseas property buyers wanting finance, it is claimed.
Foreign investors spent US$35billion on United States mortgages in the year to March 2014 – up by almost half, at 46% year-on-year, according to National Association of Realtors data.
Many US banks are offering access to credit for non-residents wishing to invest in holiday homes, says Anthony B. Sanders, economics professor at George Mason University, in Fairfax, Virginia.
“The American pool of borrowers is drying up. Middle-class borrowers have flat lined due to low income growth, and domestic investors are finding it less appetizing because the foreclosure inventory has dried up. So who do you go to?… foreign investors.”
Philip Button, Managing Director of specialist property investment firm Brookes & Co, who markets Florida properties to UK buyers welcomes the move.
“It’s fantastic to see investment in US property through foreign-national mortgages opening the sector up to growing numbers of buyers in the UK. US mortgages are straightforward to obtain and don’t require those applying to travel to the country, thus making international property investment achievable for a greater number of UK residents.”
Brookes & Co is launching a new project today (Saturday 1 November) in Florida, The Club at Sunset Lake, which includes a clubhouse and swimming pool, fitness centre and spa, sports courts and cycle paths, and a lake front park and picnic area.
Two-bed properties are priced from £96,950, three-bed properties from £118,700 and four-bed properties from £137,450, with both residential and buy-to-let US mortgages available.
All properties at The Club at Sunset Lake offer a five-year rental guarantee with a 6% net return after all costs, making this a fantastic investment opportunity.
“We are very excited about the launch of our brand new Florida project and are sure it will make an excellent investment option for anyone looking to capitalise on Florida’s buoyant market. It will be interesting to see how many of those who invest opt to do so through foreign-national mortgages from US banks,” says Mr Button.
“Of course, individuals who do take out foreign-national mortgages have the added advantage of being able to begin building a credit history in the US, which is something that is always advantageous to have, too.”
By Adrian Bishop, Editor, OPP Connect