This is a guest post that I thought appropriate to re-publish here because it speaks to a trend that I see emerging in investment real estate.  The weakening of the U.S. dollar is making U.S. real estate a more attractive option for foreign investment.

Guest Post By Marc Knight

The recent meltdown of the Miami Condo market has attracted the attention of international investors. Miami has always been a favorite amongst wealthy Latin Americans and Europeans and now that prices have become very attractive they have once again started to purchase properties. According to a recent survey by the Florida Association of Realtors, 78% of all international home buyers that make a purchase in the Miami-Fort Lauderdale-Miami Beach MSA come from either Latin America or Western Europe.

Currently the Euro is hovering around its 2009 high versus the dollar at $1.50. If the dollar continues its recent slide, Miami Condo prices will look even more attractive to Europeans. According to the FAR, the two largest countries of origin of foreign home buyers in Miami are Venezuela (17%) and Argentina (13%). However, Argentinians and Venezuelans are purchasing property for vastly different reasons.

Argentinians are purchasing condos because they are affordable. Typically Miami Condos were at least twice as expensive as what you could buy in Buenos Aires. According to Ariel Szeinbaum, general manager of 4RentArgentina.com, the average price per square foot of a newly built condo in the stylish Recoleta neighborhood of Buenos Aires is currently about $236. Right now, in Downtown Miami / Brickell, you can purchase a new construction condo between $200 and $250 per square foot. And bank owned properties are selling at prices cheaper than that.

Venezuelans, on the other hand, are concerned with political instability and safety issues that plague the Hugo Chavez regime. They are looking to stash money in Miami Condos as they view it as a safe haven.

Considering that these are cash purchases, as there are no loans currently being made to foreign nationals, it’s impressive to consider that they account for the majority of sales in Downtown Miami / Brickell. Coupled with the recent intervention by Uncle Sam to buy mortgage backed securities and offer an $8,000 first time home buyer credit, the fall in condo prices has begun to slow.

The author of this post, Marc Knight, is a Realtor and investor specializing in Miami Condos for sale and Miami Beach Condos for sale.

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