news-record.com

Real estate in the U.S. is the top destination for foreign buyers as international purchases surged by $16 billion this year, one of the highest increases in recent years.

According to a recent survey, for the past year ending in March 2011, total residential U.S. international sales equaled $82 billion, up from $66 billion in 2010. Total international sales were split evenly between non-resident foreigners and recent immigrants, while combined total domestic and international U.S. existing-home sales were $1.07 trillion.

The survey was conducted by the National Association of Realtors as part of its 2011 Profile of International Home Buying Activity.

“The U.S. has always been a desirable place to own property and make profitable investments,” said NAR President Ron Phipps. “In recent years, we have seen more and more foreign buyers coming here to take advantage of low prices and plentiful inventory.

“In addition to the advantageous market conditions, Realtors in this country have a global perspective and experience in working with clients from different cultures and real estate practices, helping them bring value to their international clients.”

Historically, foreign buyers have been attracted to property ownership in the U.S. for a number of reasons. U.S. homes are generally less expensive than comparable foreign properties, homes in this country are viewed as a secure investment, and the U.S. market offers rental opportunities and long-term appreciation potential.

More recently, Realtors have noticed new factors motivating foreign buyers, including foreign families buying homes for students going to college in the United States and foreign executives purchasing a temporary residence instead of renting.

Q: Is there a proposal to raise the minimum down payment for FHA mortgages?

A: The GOP wants to increase FHA down payments, according to a report in National Mortgage News. Republican lawmakers have drafted a proposal that would raise the minimum down payment on Federal Housing Administration loans to 5 percent. This would drastically scale back the size of the federal mortgage insurance program, according to trade group officials familiar with the effort.

Jim Woodard writes for Creators Syndicate, www.creators.com.