Luxury real estate investors and buyers have shifted their priorities. Instead of trying to grow their wealth, they are focused on wealth preservation – maintaining the wealth they have in today’s challenging and unpredictable investment market. A Reuter’s article calls the resulting investment strategy a “catastrophe portfolio” which “allocates one third of the money to gold, one third to defensive and internationally diversified blue chip company shares, and a third to the debt of ultra-safe developed countries.”
The third investment strategy is interesting. A 2011 study by Knight Frank and Citi Private Bank reports that factors that encourage investors to seek out and buy the very best property in U.S cities, if anything, have become even more important.
This interest in quality real estate has been seen in Southwest Florida. Many foreign buyers are looking at Southwest Florida, specifically Naples as a sound real estate investment. Many of these buyers, like Canadians, are seeking vacation or second homes on the Paradise Coast. In addition, South American buyers also find Southwest Florida attractive and make up part of this buying group. 43% of these buyers agree that a desirable location is the most important factor influencing the purchase – and we all agree that Naples, Florida is a desirable location. Single-family homes are purchased the most with condos following closely behind and 62% of these sales are cash, which alleviates challenges with financing.
On a national level, the international market for U.S. residential property approached $82 billion on an annual basis. In serving the market, buyers rely heavily on contacts and reputation in obtaining clients.
If you’re interested in investing or buying real estate in Naples, Florida, be sure to find an agent that specializes in International clients.
To find an agent who specializes in International clients, click HERE.