Weak Dollar Spurs U.S. Home Sales to British Buyers
NAHB’s International Department is advising association members of opportunities to market their homes to potential buyers in Great Britain.
With the British pound remaining strong against the U.S. dollar and U.S. house prices softening, “many British buyers agree that now could be the perfect time to snap up a bargain in the states,” said Justin Figgins, director of Rightmore Overseas.
“We have recently taken on listings from more U.S. developers and Realtors®, all keen to exploit Brits’ growing interest in the American market, and they have been delighted with the response and leads generated so far,” he said. “There is a real perception in the U.K. that as far as U.S. real estate is concerned, it is a buyer’s market.”
RightmoveOverseas.co.uk is the United Kingdom’s leading international real estate portal. It is a division of Rightmove.co.uk, the U.K.’s leading property portal and its seventh most frequently viewed Web site.
During the first half of this year, searches by buyers in the U.K. for real estate in the U.S. have risen by 50%, to a monthly average of 190,000, according to Rightmove.
The statistics also show that the U.S. is now the third most popular country for Britons buying international real estate, just behind the traditional second home destinations of France and Spain.
As well as vacation homes, buy-to-rent opportunities in the U.S. are also popular with British investors, and Rightmove Overseas recently assisted a British couple looking to purchase such a property.
“The fundamentals were all good,” said Figgins. “The price had recently been reduced by 20%; a rental yield of more than 7.5% was achievable; and the property was located close to the airport and downtown offices, so it attracted good tenants,” he said.
“The couple was also able to obtain a 70% LTV mortgage, which made the potential investment gains over a five-year period very attractive,” he said.
“Another important factor in the couple’s purchase decision was the reasonable closing costs at around 3%; this compares very favorable with closing costs in Europe, which can be as high as 10%,” according to Figgins.
For information on marketing real estate to British buyers on Rightmove Overseas, call Tom Whale at +44 (0) 1908 308 546, or send an e-mail.
For information on international resources available from NAHB, e-mail Susanna Connaughton, or call her at 800-368-5242 x8415.