It may be something to do with the fact that Garrett Kenny (pictured) hails from Ireland, which puts him in the ideal position to realise the vast potential of international sales in the United States real estate market. But one thing he can’t understand is why more United States realtors are not involved in foreign sales. The same can be said for a large number of real estate agents anywhere in the world, including here in Thailand.
It’s true that the numbers of realtors working the international market in the U.S. is growing but even so there were still only some 209,000 sales to foreigners which is a measly 4 percent of the total US market.
It would be interesting to know what percentage of sales in Thailand are happening to buyers from overseas, but Dot Property Group expects it is largely similar.
Kenny is Chief Executive Officer of leading developer and agent of Feltrim Group based in central Florida, and he said we see a significant proportion of our sales going to overseas buyers. Take, for example, our Champions at FountainsGate development, near Orlando, which was officially opened recently.
He said: “Around half of Fountains luxury townhouses went to British buyers and half to Chinese investors. We also see high level demand from Canadians, including many snowbirds, Latin Americans and also domestic purchasers.
“We are also expecting significant foreign interest in our brand new luxury project, Balmoral at Water’s Edge resort, which was unveiled last week; a new lakefront resort and community that promises to be one of the most attractive developments south of the Disney area.
“It is set within a 113-acre private gated community featuring natural and man-made lakes and landscaped gardens and parks, and provides an upscale, elegant and distinctive lifestyle that owners around the world will love.”
It is no accident that Feltrim Group has strong international sales, and the fact you’re reading about the company on a Thailand-based website is evidence of that.
“We work very hard for them, regularly holding and attending overseas property shows in China, the U.K. and around the world. We have specialist staff to communicate with Asian buyers and take them through the sales process, and have strong links with the Asian Real Estate Association of America and many other key foreign real estate organisations.”
Orlando, where Kenny is based, is the number one destination for overseas visitors in the U.S, which attracted 60 million visitors last year – an all-time record. And where tourists are, property buyers are not far behind. Let’s not also forget that Florida is the number one state for international buyers.
Still not convinced that you should be in the overseas buyer market? Here are five reasons that might make you think again.
Spending power
Foreign clients spend almost twice as much on property as U.S. buyers, andthat’s largely true anywhere in the world. From 2014/15 the average price paid by foreign clients for a house was US$499,600 compared with the overall U.S. of about US$255,600. Leading the way, far ahead of the amount spent by other nationalities, is the US$831,800 average purchase price paid by the Chinese. He said it is not unusual for his company to see investors buy several properties at once. Even though U.S. real estate values are rising month-on-month many foreign buyers still see them as comparatively cheap and providing better values than those in their native country. International non-resident clients are likely to be wealthier than typical U.S. buyers.
Cash is king
Most international clients buy homes using cash, with more than half being all-cash affairs and that is a big advantage for developers and agents. That said, some international buyers who need mortgage financing can run into issues with a lack of credit history, documentation or other problems, so it is always useful to have alternative financing arrangements available.
Because it’s hard work
Finding and keeping international buyers is hard work and takes considerable focus and effort. Hiring specialist staff, attending overseas shows and events, producing targeted sales and marketing material, translations, inspection trips and all the other requirements that go into securing foreign sales is not easy.
It provides diversification
Diversification and spreading your risk is good for any business, so if a downturn happens in one market you are likely to see rising sales in a corresponding sector. However, it means you must stay on top of the data and keep yourself well-informed of sales movements, big economic issues, major currency swings and more.
Because others aren’t
It’s often profitable to have first-mover advantage, and gaining a foothold in foreign markets where there are likely to be fewer competitors could be a big factor in boosting your real estate business. That is, assuming you are up to the challenge.
