$41 billion worth of home buys has been attributed to international investment in the US over
the last two years according to recent figures. This is a considerable figure and warrants attention
because it is important to understand who these investors are, where they are coming from, and
why they are so attracted in the real estate market of America.

How we can gain an insight into foreign investors?
We can use some general information such as the country from which these buyers originate
and what their buying potential is, to understand a little more about these investors. We can also
consider the kinds of properties that they are investing in. What is currently know, though, is that
international purchases rose to over $16 billion last year and focused on residential properties.

Where is the investment coming from?
Additional information has been gathered to show that over half of international investment comes
from five countries, including Mexico, China, India, Canada, and unsurprisingly, the United Kingdom.
We also know that the majority of these purchases were made in the states of Arizona, Texas, and of
course, California, and the popular holiday destination of Florida.

What is involved in the decision-making?
The main factors that were involved in the decisions to make these purchases included how close
these locations were to the country of origin of the investor, as well as transportation links and
climatic conditions. How similar the climate and the general lifestyle of the area is to the investors
country of origin was also found to be important. The assessment that the investors made of the
area in terms of its similarity to the climate in their own country tended to depend on word of
mouth or the number of people living in the area that were of a culturally similar background, which
is understandable. There are also notable reversals of this trend, were investors from colder climates
have purchased property in much warmer climates for the purposes of vacationing or a temporary
residency for work purposes.

What do we know about foreign investors?
There are some points that we have come to learn about our investors such as the reasons behind
their purchases. For instance, Canadians seem to purchase property near places that have a great
deal of recreational opportunities such as lakeside properties. We also know that a number of
investors purchase property once they have begun working in the US and then bring over the
remainder of their families. Some purchases are made by parents in other countries to provide
their children with accommodation whilst studying in the US. Investors from Singapore and China
tend to make their purchases in the view that the US will provide them with a good return on their
investment or an opportunity.

There have also been some interesting findings from research into the nature of the transactions in
foreign investments. We also know that half of purchases made by overseas buyers were made by
immigrants who had relocated to the country. Well over half of all purchases were made in cash,
which is a proportionally higher percentage than seen in domestic purchases.