With mortgage rates rising and property prices fluctuating in the United States this year, many buyers are considering their options when it comes to getting the most out of their home purchases.
In 2021, Americans owned more than $35 trillion in overseas assets, a 40% increase from pre-pandemic levels. This is a sign that Americans are looking abroad for their investment opportunities.
One of the ways American investors might be looking to diversify their investments and get the most out of their homes, according to real estate experts, is to look abroad.
“It’s a buyer’s market for overseas real estate investors looking to buy properties,” said Paul Welch, CEO of largemortgageloans.com. Newsweek.
According to Welch, the UK is one of the main places where Americans are looking to invest real estate funds in the coming years. As the pound continues to hover around the value of the dollar, Americans could see their real estate investments stretch a bit more.
This is particularly the case in London, where Welch argued that US buyers have the buying power due to the strength of the dollar against the pound.
He added that with Knight Frank forecasts showing that London property prices could fall by an average of 10% over the next 24 months, US buyers can name their price.
“In our experience we see an increasing number of overseas clients looking to buy prime UK properties worth £10m and above,” Welch said.
“Such is the demand that some of our clients accept margin/Lombard loan credit facilities in preparation so that they have the liquidity in place ready to go when the right property becomes available, proving that the super prime real estate market continues to grow from strength to strength.
“As we move forward into 2023, we will continue to see a healthy increase in prime real estate transactions as wealthy foreigners continue to buy luxury homes in locations where they can take advantage of favorable currency movements and the negociation power.”
However, it’s not just real estate tycoons and millionaires investing in overseas homes. Global real estate industry expert Esther Muller tells Newsweek that many families and retirees are turning to more affordable markets in the Middle East.
“The housing market has gone in extreme directions over the past few years, which has left future homeowners feeling more hopeless over time,” Muller said.
“While it may seem nearly impossible to find a great house for a decent price in the United States, that’s not the case in other places overseas.
“The mission of owning property in Israel is primarily for Americans who want to add it to their property profile as a place to visit, investment and heirloom for their family.”
According to data from InterNations, more and more residents are looking abroad for new career opportunities, connecting with family and enjoying a better quality of life.
Around 10% of expats surveyed said their main motivation for moving abroad was for love or to live in their partner’s home country.
And while the US government does not officially track the number of Americans leaving the United States for greener pastures, the most recent estimate puts the figure at nearly nine million Americans living abroad.
Meanwhile, HSBC’s Expat Explorer report found that 63% said they saw their disposable income increase since moving abroad.
They also found that overall, the MENAT (Middle East, North Africa and Turkey) region was ranked highest for quality of life, with 71% of expats recommending moving there.
Europe and Oceania remain popular destinations for expats, with 9 out of 10 in Switzerland, Australia, New Zealand, Cyprus and Spain recommending moving there for the quality of life.