Foreigners Investing In New York City

One of the maxims of investing advice is”Buy low, sell high.” That’s exactly what many foreigners are expecting to do by trying to time a foreclosure market in New York City that it seems to have escalated to unprecedented levels.

While money is tight in the United States, foreigners are experiencing increased purchasing power due to a falling dollar, making their currency worth more in the United States and helping them to get loans to purchase property here. The metropolitan area of New York City has been listed as one of the top 100 areas affected by the mortgage crisis by RealtyTrac, a website that tracks foreclosures. They showed some areas like Staten Island where foreclosures increased by 101%. On average throughout the entire metropolitan areas, however, foreclosures went up about 30% from 2007 to 2008.

This, along with the falling dollar, has provided a golden opportunity for foreigners interested in doing some astute investing and long-term financial planning to buy up homes that have fallen in value in the hopes that the market will eventually rebound. The glut of foreclosed homes has driven housing values down significantly, meaning a better value for the foreign investor. In this respect, New York City is just one city around the United States where foreign interest has been stirred.

Florida and California are also good areas for foreign investors seeking out properties to help diversify their financial portfolios for the long-term. This not only provides a good value on the currency exchange but also hedges their buying power should the value of the dollar rise in comparison to their own currency later.