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Thread summary:

Florida: real estate, buyers market, foreclosures, overseas investment, broker.

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Old 12-05-2007, 04:10 AM
 
Location: Living in Paradise
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A report last night in NBC news made reference that overseas investors/individuals are purchasing homes in the US (Florida included) because the financial strength of the EURO vs the US dollar.


Many are finding that housing is cheaper here than abroad.

How will this change the current situation?

More diversification of international cultures?

Who is going to loose/win?
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Old 12-05-2007, 04:59 AM
 
Location: western East Roman Empire
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Quote:
Originally Posted by sunrico90 View Post
A report last night in NBC news made reference that overseas investors/individuals are purchasing homes in the US (Florida included) because the financial strength of the EURO vs the US dollar.


Many are finding that housing is cheaper here than abroad.

How will this change the current situation?

More diversification of international cultures?

Who is going to loose/win?
How will this change the current situation?

The oversupply is massive, I don't think eurozone residents will be moving, or even investing, in the US en masse.

Who is going to loose/win?

Some astute euro-based investors may win, but it requires professional selection criteria. The average Joe who throws his hat into the ring, so to speak, usually winds up losing.

I would take the report with a grain of salt, I do not expect that a few euro-based investors will completely change the fundamentals of the current disaster; they are more like vultures picking flesh off the fallen wounded.
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Old 12-05-2007, 06:09 AM
 
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Originally Posted by bale002 View Post
How will this change the current situation?

The oversupply is massive, I don't think eurozone residents will be moving, or even investing, in the US en masse.

Who is going to loose/win?

Some astute euro-based investors may win, but it requires professional selection criteria. The average Joe who throws his hat into the ring, so to speak, usually winds up losing.

I would take the report with a grain of salt, I do not expect that a few euro-based investors will completely change the fundamentals of the current disaster; they are more like vultures picking flesh off the fallen wounded.
You may have some points...however, all the luxury purchases (homes, yachts, high end autos, bonds, etc.) tend to trend each other. I will tell you that my husband is a yacht broker, and the last 1/2 dozen sales all went to Euros who paid the money to fly over here, and transport the boat over ON TOP of the money for the vessel. The rest of the sales have gone to Canadians......so...maybe the Euro average Joe is still smarter and more "astute" than the "astute" US investor. Only time will tell!
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Old 12-05-2007, 06:35 AM
 
Location: western East Roman Empire
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Originally Posted by LewLew View Post
... all the luxury purchases (homes, yachts, high end autos, bonds, etc.) ......so...maybe the Euro average Joe is still smarter and more "astute" than the "astute" US investor. Only time will tell!
But the average eurozone Joe is not making luxury purchases, rather the elite eurozone.

But even US luxury buyers are not phased: Maserati has reported a 64% increase in sales in the US in 2007, but I think they produce something like several tens of thousands of units, at most a few hundreds of thousands, a year, not millions.

One of the questions was how will European/Canadian/Latin American buyer influence change the current situation. The oversupply problem is massive, I do not expect massive foreign buying influence, but, yes, certainly at the margins, in the luxury segments.

Another related aspect to the question is, will the falling dollar generate more exports and help the US stave off recession? It depends on whose argument you believe. The trade deficit has tapered off a bit, but some economists, at Moody's for example, do not see this as a factor that can stave off recession, if it comes to that.

It would take some scrutiny of trade figures to see how this impacts Florida: ebusinessflorida.com statistics are usually published with a year or two lag; one would have to scrutinize Dept of Commerce data, and then have confidence that the person reporting the data is telling the truth, not a given.
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Old 12-05-2007, 06:43 AM
 
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Quote:
Originally Posted by bale002 View Post
But the average eurozone Joe is not making luxury purchases, rather the elite eurozone.

But even US luxury buyers are not phased: Maserati has reported a 64% increase in sales in the US in 2007, but I think they produce something like several tens of thousands of units, at most a few hundreds of thousands, a year, not millions.

One of the questions was how will European/Canadian/Latin American buyer influence change the current situation. The oversupply problem is massive, I do not expect massive foreign buying influence, but, yes, certainly at the margins, in the luxury segments.

Another related aspect to the question is, will the falling dollar generate more exports and help the US stave off recession? It depends on whose argument you believe. The trade deficit has tapered off a bit, but some economists, at Moody's for example, do not see this as a factor that can stave off recession, if it comes to that.

It would take some scrutiny of trade figures to see how this impacts Florida: ebusinessflorida.com statistics are usually published with a year or two lag; one would have to scrutinize Dept of Commerce data, and then have confidence that the person reporting the data is telling the truth, not a given.
I think Florida is one of the most attractive markets for any Euro investor regardless of status. Thus, if it is going to be positive for the US as a whole, it will certainly be a positive for FL. I am naive to think it will solve our issues, but it will help to stabilize the marketplace. However, I'm not a huge fan of a globalized economy...but again, another post!
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Old 12-05-2007, 08:47 AM
 
Location: America
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Quote:
Originally Posted by LewLew View Post
You may have some points...however, all the luxury purchases (homes, yachts, high end autos, bonds, etc.) tend to trend each other. I will tell you that my husband is a yacht broker, and the last 1/2 dozen sales all went to Euros who paid the money to fly over here, and transport the boat over ON TOP of the money for the vessel. The rest of the sales have gone to Canadians......so...maybe the Euro average Joe is still smarter and more "astute" than the "astute" US investor. Only time will tell!
^^

I believe as you said for high end purchases like yachts and high end homes then people from abroad will buy those for vacation homes or whatever else. I think for none luxury homes this will not be the case. I don't believe these people coming in will be enough to offset the amount of real estate available right now. I know that the U.S. has been trying to entice buyers from abroad to come save the day for some years now, but they would have to entice much of Europe's wealthy here in order to fix the problem and I just don't see it happening.

Quote:
Originally Posted by LewLew View Post
I think Florida is one of the most attractive markets for any Euro investor regardless of status. Thus, if it is going to be positive for the US as a whole, it will certainly be a positive for FL. I am naive to think it will solve our issues, but it will help to stabilize the marketplace. However, I'm not a huge fan of a globalized economy...but again, another post!
someone just posted a report from the florida government's chamber of commerce. This over sees invasion of foreign money everyone keeps hoping for isn't happening. In fact the report said foreign visitors and investment is down. It also said there is a outward trend of Florida residents i.e. more people moving out than coming in.

NYC is going to have the same problem, mark my words. They already said the ONLY reason population is steady is because of birth rates, however able body working adult population is down in that city. Its a HUGE problem right now, the south is on the rise though (certain cities).

We as American's need to start reading whats going on in the world more to be frank. Europe is in a ton of trouble its darn self so again this foreign money everyone keeps counting on, I don't know how likely it is. Heck London just had a run on their banks a few months ago, things are not good globally but I guess we gotta "keep hope alive"
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Old 12-05-2007, 09:01 AM
 
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Originally Posted by Wild Style View Post
^^

I believe as you said for high end purchases like yachts and high end homes then people from abroad will buy those for vacation homes or whatever else. I think for none luxury homes this will not be the case. I don't believe these people coming in will be enough to offset the amount of real estate available right now. I know that the U.S. has been trying to entice buyers from abroad to come save the day for some years now, but they would have to entice much of Europe's wealthy here in order to fix the problem and I just don't see it happening.



someone just posted a report from the florida government's chamber of commerce. This over sees invasion of foreign money everyone keeps hoping for isn't happening. In fact the report said foreign visitors and investment is down. It also said there is a outward trend of Florida residents i.e. more people moving out than coming in.

NYC is going to have the same problem, mark my words. They already said the ONLY reason population is steady is because of birth rates, however able body working adult population is down in that city. Its a HUGE problem right now, the south is on the rise though (certain cities).

We as American's need to start reading whats going on in the world more to be frank. Europe is in a ton of trouble its darn self so again this foreign money everyone keeps counting on, I don't know how likely it is. Heck London just had a run on their banks a few months ago, things are not good globally but I guess we gotta "keep hope alive"
I think they are talking very high end, multi millions. No foreign investor is looking for a duplex in Hallandale.
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Old 12-05-2007, 09:21 AM
 
Location: America
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Originally Posted by macguy View Post
I think they are talking very high end, multi millions. No foreign investor is looking for a duplex in Hallandale.
I didn't put it as simplistically as you did but that is pretty much what I said
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Old 12-05-2007, 09:50 AM
 
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Being in the housing industry, my thought is this on Florida......We are in the same boat as every other transient city/state in America. People haven't moved here for a HOME..they've moved here, built here, and invested here for mass profit. With that said, and the rest of the sucky economy aside, what is going to fix FLorida is getting back to what it was in the first place. A place for a mix of families, tourists and retirees. People purchasing and buying b/c it is a great place for rental unit investment, for snow birds, for beach loving families to reside. Florida will go up and down and up and down and round and round like an amusement park ride until the US gets there head out of you know where. I agree the foreign money isn't going to fix that problem. I do, however think that the buying pool of Euro buyers is going to be one of our only hopes for a while (as independent from that as I wish we were) due to the lousy dollar, the poor US economy, the large gov push for foreign investment, and the lack of qualified buying pool here in our own country for the next several years (foreclosures, bankruptcies, etc.)
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Old 12-05-2007, 02:11 PM
 
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LewLew said, "the lack of qualified buying pool here in our own country"

I disagree. It is not so much as a lack of qualified buyers in my opinion, and proof of this is a great value will sell. The problem is devaluing the dollar to promote globalization (a surrender of our national sovereignty) and a debtor mentality Americans have.

Our parents worked years to get their home, assets and luxuries. Baby Boomers grew up wanting what their parents have without working for it as long or paying for it now - just charge it - mentality. When economic conditions fluctuate people have so much debt they can't fluctuate back. Many thought, just file bankruptcy, that's why they changed the bankruptcy laws. As for the "wealthy" , I would love to see their P&L statement and Financial Statement to look at Assets / Liabilities and what their debt totals.
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