Wednesday, December 2, 2009

New Study Finds that International Investors Plan to Buy More Real Estate

Individuals with more than $800,000 to invest are poised to increase their property holdings, with real estate investments among wealthy individuals set to rise to 30 percent over the next few years, according to a survey covered by Bloomberg report. This recent global survey was conducted by the major global financial services provider Barclays and revealed several interesting statics regarding international real estate investing in the current market conditions.

Investors foresee better long-term returns on property investments than from bonds and stocks. Three out of four investors surveyed said that residential real estate is looking attractive and two thirds of investors are interested in exploring commercial real estate investments, according to the study’s findings.

The survey showed that the U.S. was the most attractive real estate market for investors outside their home country, with many investors believing that it is the country with the highest potential for return on investment. Many sunny parts of the U.S. such as Florida continue to be seen as very attractive investments for buyers.

Investors from Canada and the Persian Gulf were reported to be the most likely to increase their property allocations. Interestingly, the study revealed that about 30 percent of British and Indian investors have more than half their wealth placed in real estate.

In the current real estate market it is important for buyers interested in building their real estate investment portfolio not to try and time the bottom of the market. If you may be trying to wait for the last 5 to 10 percent of downside that is expected to come in the first half of 2010, any potential savings may be offset by higher mortgage rates.