A commonly asked question I get is, “what’s the hot global market to watch?” In recent time, the UK market has shown increasing purchase power into the United States, and it’s one market I believe we should all be watching closely.
While the world’s eyes have recently focused on the UK for the Royal Wedding, over the last six months Investorist has seen a 46 percent spike in online searches from UK brokers with interested buyers looking to park their pounds in U.S. property.
Dramatic changes to stamp duty regulations (aka property taxes) in recent times by the UK government is one factor fuelling the desire for property abroad. The changes have meant that buyers will now have to fork over an additional 3 percent on second home purchases— a substantial chunk of money for some.
Five other motivators driving UK money to the US include:
- Brexit & Currency Values. The pound as compared to the USD initially took a huge hit in the first few months after Brexit when the pound dropped from $1.47 down to $1.20. As of today, it is over $1.32, which is an indication that the pound is stabilizing and has the potential to increase, which is great for UK buyers who will get more ‘bang for their buck’ when investing in US property.
- History Repeats Itself. The Brits have always had an affinity for buying US property. They have constantly been a frequent purchaser according to the 2017 NAR report of foreign buyers purchasing in the US – UK buyers ranked 4th in Miami, 2nd in LA & 2nd in New York.
- Idyllic Weather. Few states in the US can compare with the formidable weather you will find in popular UK metros like London & Edinburgh. New York City, for example, has fewer wet days than London and a higher average minimum and maximum temperatures year-round.
- Convenient Flight Routes. There are dozens of opportunities per day to get from the US to London. For example, currently, there are 12 airlines that fly non-stop from London Heathrow to New York’s major airports on a daily basis, totaling over 213 from London to New York.
- No Language Barriers. This is pretty straightforward; being able to speak the same language is a great boon and adds to the allure of living in the US where English is the first language as it is in the UK.
But above all, for anyone looking to tap into any new market, working with local brokerages is a must- trying to attract buyers directly is always going to be difficult because of the hurdles and tremendous effort needed to get the deal done. By taking a “boots on the ground” approach, you’ll be dealing directly with local brokers who have access to qualified buyers, a good grip on their wants and desires, and knowledge of their preferred pricing. Platforms like Investorist make it easy for developers to engage and connect with these brokers, market their development and make the sale in new and emerging markets like the UK.
Author Bio: Josh Cunningham
Josh Cunningham, Vice President of Sales Americas for the Investorist, works with international brokerages and developers to market new construction projects to international investors. During his tenure at Investorist, Josh has traveled the world and is extremely versed on working with international real estate professionals how to shorten the sales cycle of new development, international marketing tactics and how to work and sell in China.