As 2015 shows an uptick of foreign investments in US real estate, veteran real estate agent Angelo Fierro explains why Los Angeles remains a top pick.
Since the Great Recession began in 2008, foreign investors have been snagging real estate deals across the United States at bargain prices.
According to Realtor.org’s 2014 Profile of International Home Buying Activity, the US saw $92.2 billion of residential real estate sales volume from foreign investors, a 35% increase as compared to the previous period.
The commercial real estate market has experienced significant growth as well, surging $129 billion during the first quarter of 2015 alone according to research firm Real Capital Analytics Inc.
While these increases have spread across the country, Los Angeles continues to be a top location for foreign investment dollars.
According to The Association of Foreign Investors in Real Estate’s 2015 Foreign Investment Survey, Los Angeles ranked 3rd as compared to other US cities, an increase from 5th place in 2014.
Luxury real estate agent Angelo Fierro, who works with foreign from investors from Russia, Asia, and Europe, offers two reasons why Los Angeles continues as a preferred location.
First, Los Angeles gives many foreign investors more bang for their buck. Fierro says, “When you look at the major real estate locations worldwide – places like Paris, Hong Kong, Singapore, London , Shanghai – LA offers a much better value for their investment.”
According to a report by real estate firm Knight Frank and research firm WealthInsight, $1 million would get you 20.6 square meters of luxury property in Hong Kong, 25.2 square meters in London, and 41.7 square meters in Paris. For the same money you could get 64.3 square meters (about 692 square feet) in Los Angeles.
Rick Sharga of real estate auction site Auction.com echoes Fierro’s sentiments saying, “Remember that US real estate, as expensive as it is, is still a bargain compared to Hong Kong and Singapore – prices there are extraordinarily outrageous, so US real estate is a relative bargain.”
Second, Los Angeles offers a investors and their families an ideal lifestyle. While the temperate climate is appealing, education is a top consideration.
Fierro explains that while there’s always been an allure with Los Angeles because of the entertainment industry that’s always been attractive, LA has increased its appeal to be more family-friendly. “It used to be all about Hollywood, Beverly Hills, and Santa Monica. Now people have many more options like downtown and beautiful properties further east in Arcadia and Monrovia with great schools for families.”
According to Elizabeth Harrington, publisher of the Huron report, where foreign investors invest in real estate in America depends largely on where the best schools are for their children.
As foreign investment interests continue flowing into the United States, expect Los Angeles to remain a top recipient of those dollars.
More information about Los Angeles real estate options for foreign investors can be found on Fierro’s website: http://www.losangeloproperties.com.
Source:: Small Business Trendsetters