Despite a recent slowdown, the U.S. real estate market continues to be a popular investment destination for foreign investors. Attracted by a desirable return on investment, many foreign nations continue to invest heavily in the U.S. residential and commercial real estate markets. In fact, in 2005, foreign investment in U.S. real estate reached 1.83 trillion.

To evaluate the impact of foreign investment on the U.S. real estate market, the National Association of Realtors (NAR) produced a 2006 report entitled ‘Foreign Investment in U.S. Real Estate: Current Trends and Historical Perspective.’ The report provides insights into the trends in foreign real estate investment, its impact on the U.S. economy, and the major countries that participate in U.S. real estate investment. Below are some highlights from the NAR report.

According to the U.S. Department of Commerce, the top seven countries that had significant holdings in U.S. real estate as of 2005 were:

Germany – 13 %
Latin America – 13 %
Australia – 11 %
Japan -10 %
United Kingdom – 10 %
Canada – 6 %
Netherlands – 6 %

The U.S. economy is wide open to foreign investors. Both investors and Americans significantly benefit from all this foreign investment. The NAR study estimates that without foreign investments in the securities market, the long-term lending rates would be four percentage points higher than the current rate, which would adversely impact the U.S. real estate market.

Foreign direct investment into the U.S. not only creates more jobs but also contributes to the demand for U.S. real estate. In fact, foreign investment may be responsible for creating two million U.S. jobs by the end of 2006, which further bolsters the demand for U.S. real estate.

Permanent and temporary immigration of foreign-born workers into the U.S. further bolsters the demand for real estate. According to the Joint Center for Housing Studies at Harvard University, 1.2 million net immigrants are expected to arrive in the United States annually. This immigration pattern is expected to offset the decrease in housing demand by post baby-boomer generations.

In summary, the impact of foreign investment and immigration into the U.S. will continue to play a major role in the U.S. real estate market.

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Rancho Bernardo Real Estate

Buying home, condo or any other real estate in a market that is protected from a bursting bubble is every investor’s dream. Knowing where to look for these bubble-proof markets and how to identify them is crucial.

There are some important factors that investors should consider when searching for stable investments such as single-family homes, condos or any other type of real estate. Some of these factors include a fast growing population (which positively impacts the demand for housing), a solid and diverse economy (which impacts employment rates and subsequent demand for housing), rising incomes (which impacts buyers’ ability to purchase real estate), a developing infrastructure (which contributes to the appeal of a city or community), and restrictions on future real estate development (which limits future supply of real estate). Investing in real estate within communities that meet these criteria may prove to be more profitable than communities that are missing one or more of these factors.

A recent report by Business 2.0 Magazine identified U.S. cities that have consistently demonstrated price appreciation in the real estate market. The October 2006 issue of the Magazine identified the top 5 real estate markets that demonstrated an upward price trend over a long period time. The top-ranking cities were:

1. San Francisco, California

2. Los Angeles, California

3. Seattle, Washington

4. Boston, Massachusetts

5. New York City, New York

San Francisco topped the list with an average annual home price appreciation of 4.2% from 1949 to 2006. In contrast, the national average was 2.3%. Strong restrictions on real estate development and a limited geography helped push San Francisco to the top slot.

Los Angeles ranked second in the report. The average annual home price appreciation in Los Angeles was 3.7% from 1949 to 2006. Reductions in available land and increasing restrictions on further development helped pushed Los Angeles to the number 2 slot.

Home prices in Seattle, which was third on the list, demonstrated an average appreciation rate of 3.2% from 1949 to 2006. While Seattle made the top 5 list, recent easing of building restrictions may cause Seattle to fall out of the top 5 over the next few years.

Boston was fourth in the rankings. The city has seen annual home prices appreciate by 3% over the period from 1949 to 2006. A strong increase in per capita income contributed to Boston’s high ranking.

New York City follows close behind with an average annual home price appreciation of 3% from 1949 to 2006. A limited geography, large population, and finite number of properties contributed to New York’s high ranking.

While there is no guarantee that any of the real estate markets listed previously are truly “bubble proof,” the factors described above may help investors find the profitable markets and avoid “bubble” markets. Since the real estate market is constantly changing, be sure to seek out the services of a skillful real estate agent to help you navigate your next real estate purchase.

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I want privately held investment and real estate companies engaged in the acquisition, development and management of select real estate projects and selected business opportunities. I want to developed over 4,000,000 square feet of urban real estate including office, hotel, retail, town-home and commercial parking properties. How can I get started? Thanks

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Flipping in terms of real state refers to a custom of purchasing a plot of land having potential and selling it instantly by remodeling it. Flipping will give an investor a decent profit amount. The flipping process can be applied to any asset.

Multiple Investor flipping: Under the policy of MIF ( Multiple investor flipping ), a person can buy an asset at a lower price than the original market price, sell it very fast  to a third party investor who will in turn sell the property to another buyer.

Flipping in the real estate business: An investor will get a profit by flipping a property asset by  purchasing it at a low price and then sell it on so as to gain profit from the shoot up of the real estate market prices. A house which requires some repair work is purchased and repaired, remodeled, conditioned and sold by a fix up.

Fixing and flipping: An investor will flip and buy a house for a decent amount from the real estate market. Discounts are provided for houses that have some damage or need conditioning like renovation or some repair. Discounts are also given if the owner requires some instant cash and sell his house at a lower price than its actual price. The purchasing investor will work on the renovation of the house and fix the house. The investor will try to make some profit by selling the asset fast so that he gets a price which is approximate to the actual market price of the house. Fixing and flipping has inspired a lot of rookie investors into entering the business.

Regulations for flipping: The department for urban developing and housing has created certain regulations against flipping predatorily inside the authority federal housing and the insurance for mortgage of single families. 90 days is the minimum time required for acquiring a property between the purchase and the dates for the sale should qualify for the mortgage finance which is insured by the authority for federal houses.

Advantages of flipping real estate: A rational flip will promote a complete rejuvenation and also help resort of the decrypted environment. Based on the window theory, a house which is unkempt will invite criminal activities so it is important to have a responsible living. Restoration of an unkempt house will provide job opportunities; it will generate more sales for the vendors who sell materials of construction. A remodeled house will attract new crowd and also business into that region. It results in an advanced economic development. It will bring more revenues from property taxes to the state government which provides the scope of improvement.

On a singular basis, a real estate flipping will have advantages like the house will last longer and will have a higher price rate which increases the tax assess value. The sales of goods will shoot up and the sales tax will rise due to property improvement.  In some countries, flipping of real estate properties is illegal and one can suffer a penalty of 5 years imprisonment.