Orange County Area #2 in Global Relocations
I’ve got to hand it to OCR’s Global Committee, they ALWAYS put on such relevant and informational events. We continually try to support them and keep our CIPS education up to date 🙂 Today was the Global Forum, packed with info on how we can better serve and attract foreign buyers to beautiful Southern California. International buyers are a huge market in SoCal – read on to learn more about taking advantage of this!
Did you know the Orange County & Los Angeles area is the #2 area of interest for international buyers and global relocations?
So how can we help international buyers make the most of their money, so they can close easy and afford to pay more for our properties?! One way is MoneyCorp – a unique banking tool international buyers are using to get better exchange rates and guarantee funds. Contact Andrew Graziani to learn about their no-fee / no hassle transactions. They have very small minimums to exchange, and no caps. Furthermore, they have a deep understanding of how to work with every country’s currency, which is not easy. For example, consider Brazil, one currency that bounces around up to 30% in one month, and has a ton of regulations. If you want to protect your foreign transaction, make sure to work with experts like this! There are a ton of landmines when completing a foreign transaction, as noted from our previous Global Forum.
National Economic Forecast by Lawrence Yun
Lawrence Yun is one of the most respected in our industry – as National Association of Realtors’ Chief Economist for the last 10 years… when he speaks.. we listen 🙂 Let’s start with the local picture:
Is Orange County in a Real Estate Bubble?
Of course, the first thing everyone wonders is ‘are we in a bubble?’ One recent thing to note is the housing market has not been increasing as the job market increases, which is a bit of a bummer. Regardless, Mr Yun doesn’t see any kind of extreme correction on the horizon. Home prices are 3.5x higher since 1995. Lawrence, like the other experts at the recent WCR Economic Throwdown, doesn’t believe there is a bubble. SO STOP WORRYING :))
Seriously, don’t worry, but do always be on the lookout for risks or warning signs of a market shift
- International trade wars
- Rising rates and inverted yield curve
- Shift to snowballing pessimism (perception is reality!)
We have nothing to fear but fear itself – Franklin Roosevelt
What about Interest Rates?
We are on a permanent track to increase rates, so our advice to International buyers is buyer sooner than later, the rates will only rise.
The Global Real Estate Market
Exchange rate, political environment, and comparative price appreciation are all factors that affect our foreign buyers. At this point in time, the US currency conversion is high, so we saw less foreign buyers in 2018 than in 2017. That said, we still have PLENTY of international buyers, and that is not expected to change soon, only increase. Foreigners still love to buy in the United States, overall it’s considered it very safe and secure here.
Global Committee chair Spencer Hoo introduces 2018 Global Forum speakers
As financing, exchange rates, inventory, and immigration laws all improve, we can expect more and more foreign transactions. Currently, here’s the top 5 countries buying US homes:
- China
- Canada
- Mexico
- India
- United Kingdom
19% go to Florida, and 14% come here to California!
More expectations for the US market:
- Short term uncertainty but long term solid pent-up demand
- Next 3 years of home sales…..booooorrrrrrring. No real increases or decreases
- Flat & even real estate market
If you’d like a consultation to make sure your home is attractive to the foreign buyer pool as our market softens a bit, just give Angie a call, text 949-338-7408, or WeChat.
Read Full Post | Make a Comment ( None so far )Tips and tricks on buying in Spain’s finest cities.
If you read our last post about buying property in Spain then you know we think its a great idea! Spain is one of the most beautiful places we’ve ever been, and we can’t wait to purchase a home there! After visiting Spain, we wrote a blog post about all the things we learned, but we wanted to know more! We always want to be as educated as we can in order to help our clients make the best decisions in their home buying experiences. Ever since Angie earned her CIPS designation international buying is extra important to us. We had the opportunity to speak to Realtor, Anna Rubio from Keller Williams Capital Properties in DC who has also earned her CIPS designation and works often in Madrid, and she helped answer some of our questions about purchasing in Spain. Now we have someone we can refer our amazing clients too if they choose to purchase in Spain.
The process of becoming a homeowner in Spain
When you begin your. process of purchasing a Spanish property you’ll make an offer on the place you love with the seller’s agent. In Spain the buyer deals with the seller’s agent directly, because typically buyers are unrepresented, but you can choose be if you want (which you know we always recommend). If your offer is accepted then you and the seller would sign a preliminary contract and you would pay a deposit, usually around 10%. The contract is signed in front of a notary (in Spain you have a notary help you with the legal paperwork). You can choose your mortgage provider, but the seller’s agent can usually steer you in the right direction if you don’t know any in the area.
Increase your goal and shoot to become a Spain resident
In order to buy a property in Spain you need a NIE. This is a number assigned by the National Police to all foreigners that want to purchase property, or become Spanish residents. It can be difficult to obtain from overseas if you are not an EU resident and typically needs to be done with the Spain police, in person. EU partners are able to do it easier and more quickly. Just think, if you were already a resident it would be so much easier! If you’re waiting until you purchase your dream home there to become a resident then you should know Spain offers an awesome program that if you purchase property that is $500k worth in Euros, you can become eligible for your resident visa! How awesome to buy a home you love in a beautiful country while all becoming a resident of said country!
Best locations to live in Spain
Spain has some amazing cities to choose from, especially for retiring, but we all want to start retirement early, right? One of the top cities to live in is Barcelona (the second largest in Spain) known for its coastal, but historical views. You get to go to visit the beach and beautiful architecture all in one day, who could ask for anything more? Another great city to purchase in is Madrid. We visited Madrid while in Spain and it was absolutely beautiful! Madrid is the capital of Spain and known for its friendly locals and multicultural views. Malaga is another city that is absolutely breathtaking and would be a wonderful place to purchase a property and become a resident of Spain. It is on the southern coast of Spain with views of the glittering Mediterranean Sea. Its full of Spanish culture and a must see, even if only for a visit.
Malaga, Spain
We can’t wait to start referring you guys and make your dream of owning in Spain a reality! If you are interested in knowing more please fill out the form below or contact Angie at 949-338-7408.
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How foreigners can buy property in Spain
Travel much? So many of our client’s do, which is why I recently got my CIPS designation. Having international connections with real estate agents around the world is important so our team can make sure you’re real estate needs get served…literally everywhere! I recently had the pleasure of attending the SIMA convention in Madrid and had a chance to network while learning all about the process of buying and selling in Spain.
Fun fact: Spain is in the top 3 countries where foreigners make purchases. Not surprising, because it’s beautiful. We’ll save that for a different post 😉
The process of buying a property in Spain
First things first, financing. It does not make sense to begin your search until you know how much you are comfortable spending. Of course, cash is easiest. But this is a post for normal people, not cash cows…
Options for financing foreign property
So… you have a couple options. HELOC is a great one if you have more than 30% equity in your current home. Every time I mention the acronym HELOC (Home Equity Line of Credit) I feel it necessary to remind you to ONLY do this for appreciating assets. Do not use your HELOC for cars, boats, or babes. Only to buy more property. ONLY.
If HELOC is not an option for you, foreign financing is also currently available in Spain. Here’s a quick video we recorded with Lola from B. S. Bank in Madrid:
Current interest rates may actually be better than your HELOC, so it’s something to consider!
Finding your home in Spain
Like most countries, first steps are determining an area for your new home or vacation rental, and then selecting a buyer’s agent. Make sure to consider all the factors when determining your area. Here’s just a few to think about:
- Proximity to airport
- Walkable to restaurants
- Local tourist attractions & festivals
- Amount the property could rent for, both nightly & monthly
- Noise levels (planes, trains, bars, church bells)
- Crime statistics
- Parking accommodations
- If you’re vacation renting, does the area embrace that?
Once you’ve got an area in mind, it’s time to get connected with a Realtor who works that region. Just like I mentioned in our post about how to buy property in Costa Rica… a quality agent is crucial in these countries where they don’t offer a Multiple Listing Service or a centralized listing database. We never recommend DIY buying, especially in a foreign land. You need someone who will actually go scout for you and someone who gets along with the other agents in the area so your chances of obtaining your favorite property are higher.
It’s always our pleasure to interview and pair people with quality agents. Please fill out the form below if you would like to find an English-speaking match in your desired area of Spain.
If you’re still nervous about buying overseas, or have any questions about getting started on the process, we would be happy to help. Contact Angie at 949-338-7408!
Global Forum – International Real Estate
Ways Immigrants Can Buy California Property
Have you been thinking about buying in the US, but live in a foreign country? We can help! There’s lots of talk in real estate about EB 5 Immigration , it’s a program United States offers to encourage foreign investors to purchase property here in the US. Because Trump administration has been putting the brakes on immigration recently, a Green Card is tough to get! This has caused major issues and investors (particularly from China) are getting turned away. 😦 But don’t be discouraged. According to Immigration attorney Qiang Bjornbak, depending on your country of origin and job, there may be options for your visa:
If you would like to explore which immigration solution is best for you, we would be happy to put you in touch with Qiang for a consultation. She can help pave your path 🙂 Once you are able to legally own a home in the United States, then the next challenge is to obtain financing.
How Foreigners Can Obtain US Loans
Foreign loans don’t come without challenges. Seasoning, or the amount of time your money has been in the bank, can be a big one. Another issue can be a newer social security number. Furthermore, reported income, foreign bank statements, and low appraisals are all landmines that can explode during the loan application process. Red flags everywhere…what’s an investor to do?!
It was great to hear from a panel of lenders who are open to working with foreign buyers, and have experiences to overcome challenges. If you’re buying for the first time in the US, you NEED an experienced lender to make your loan process smooth. Regardless of which lender you select, always run a DU (Direct Underwriting) to make sure your loan is fully approved. Usually about 30% down is required on foreign investments, and you need 2-12 months of reserves. Certain lenders also offer down payment programs. Sometimes these loans can be closed in 30 days, but usually they take about 40-45 days. It’s best to make sure your funds are already in the US to ensure there are no delays.
According to feedback in the room… Sterling Bank & Trust is very easy to work with and has fabulous programs that are easy to qualify. ChinaTrust Bank has an ‘asset based’ program which is great when income isn’t high. Cathay Bank offers a foreign HELOC, which is very rare! Here are all the panelists, just fill out the form below if you would like an introduction!
- Sterling Bank & Trust – Steven Chang
- New American Funding – Frank Fuentes
- HSBC Bank – Buddie Krugh
- Cathay Bank – Howard Tung
- ChinaTrust Bank – Kevin Yang
What States Do International Investors Prefer in the US?
Interesting question! Literally, it’s all over! According to 2017 data, here’s the top 5:
- Florida
- California
- Texas
- Arizona
- New Jersey
If you think sunny Southern California is the best state for you, let’s talk! Just fill out the form below or text call Angie at 949-338-7408. Happy investing – we can’t wait to help you open the door to your US property!
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Orange County Real Estate Success 