In Manhattan, in the first quarter of 2010, there were over 400 sales of homes in the $2 million and up price range compared to 311 in the first quarter of 2,005. But even though luxury homes were selling, lenders’ fears prevented some foreign buyers from purchasing a home in America.
Super Jumbo Loans for Foreign Nationals
At least one area lender that seemed to buck that trend was mortgage broker Welkin Capital Group (http://welkincapitalgroup.com). Even though many of their competitors balked at selling foreign nationals homes in America, Welkin Capital Group continued to offer super jumbo luxury home mortgages of $2 million and up as if it were business as usual.
“We’ve never stopped offering luxury home loans to Americans or foreign nationals,” said Alan Goldberg, President of Welkin Capital Group. “Our investment money is funded by private capital,” Goldberg added, “and they saw no risk as long as we were dealing with qualified buyers.”
Favorable Conditions for Foreign Nationals Looking to Buy Luxury Homes in the U.S.
Now, for the first time in nearly nine years, it may be the ideal time for foreign nationals to consider purchasing luxury homes in America. Xenophobia after 9-11 forced foreign buyers to give up almost any hope of owning a second home in America. But now, foreign nationals are once again being shown the welcome mat if they’re interested in buying a home in the U.S.
There are many market facets that make foreign nationals’ purchase of a luxury home in America more of a reality in today’s market. U.S. mortgage rates are at historic lows. There are an abundance of luxury homes in the NY Tri-State market, and many of the more expensive homes are being offered at much more reasonable prices. And the recent turmoil in stock markets overseas has encouraged investment in America.
Foreign nationals also know that the US government is one of the most stable governments in the world and some state governments grant tax breaks to foreign nationals wishing to purchase real estate in America. As long as market conditions remain favorable, it will be a perfect storm for foreign nationals wishing to purchase a luxury home in America.
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Jack Goldenberg, prolific copywriter, creative marketing consultant and
author of 10minutesofbrilliance.com