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Here’s a stat that would excite those of you who are looking to sell your overseas property quickly. Over 50 percent of the home sales last year and over 40 percent of home sales this year in the United States have been all-cash transactions, in which no mortgage was involved. Cash buying is a big trend in the US property market and it’s the same across Europe and other overseas property destinations.
Indeed, the recent jump in home sales across the United States, Canada, UK, France, Spain, Turkey, Cyprus, Portugal indeed all of Europe and Australia can be attributed to the new buying trend – all-cash transactions. Local buyers, foreign investors, wealthy individuals, nobody wants to go through the convoluted process of applying for a mortgage any more.
Mortgage lending standards have been tightened across North America and Europe following the global economic recession that began in 2008, and this could be one reason for the fast emerging cash investor trends in 2016.
Banks take a long time to offer mortgages. They first scrutinize the borrowers’ tax returns, examinee their bank statements and make it a point to verify the sources of their down payments. Banks spend a lot of time analysing the buyer’s ability to pay.
According to a report from Goldman Sachs, the purchase mortgage origination volume declined appreciably from around $1.5 trillion ten years ago, when the market was at its highest point, to about $500 billion now.
The new cash buying trend is a welcome development for those of us in the real estate industry as this helps us close a sale much faster, particularly in the overseas property market.
It is certainly exciting that cash is king today. There is a feeling among buyers that if one pays by cash, they can get to the front of the queue and have an edge over the competition. This is especially true for prime properties for sale in the overseas property market for which there is a lot of competition.
This new trend originated in Florida, which was hit very hard by the economic recession. Miami has the highest share of cash buyers in the United States today, nearly 65 percent of all home sales in Miami are all-cash deals.
The question you may have in mind is who are the all-cash buyers? Where do they come from and how do you attract them to your overseas home for sale?
The cash buyers are wealthy individuals from emerging countries like China, Russia, Ukraine, Brazil, Singapore, Hong Kong, Malaysia and India, as well as from the Middle East and North Africa. These high net worth individuals are eager to divert at least some of their assets abroad.
Buying properties abroad is their way of hedging against their domestic economies. For example, for wealthy Russians, buying overseas properties is their way of insulating themselves against the devaluation of the Rouble and the decline of the Russian economy because of falling oil prices.
These are very smart investors, who know what they want and how to get it. Do contact us for more information on how to sell your overseas property to cash buyers.
Contact us today to sell your overseas property to cash rich buyers from across the world.