Rich Russians are bailing out of American Real Estate creating an opportunity for South American Vendors
Anecdotal evidence suggests that wealthy Russians, who have become a big part of the luxury real estate market in places like New York. London and Miami, may be sitting on the sidelines while the two countries fight it out on the diplomatic stage. We expect this to also affect commercial and farm land properties
Russians and other wealthy international clients have long used U.S. real estate as a shelter for their cash with very few controls on where that money comes from. 40% of the New York real estate market is made up of foreigners and 50% of new construction is snapped up by clients overseas with Russians being a major component.
While this trend certainly has not reached “crisis” level for big city real estate, the strained U.S/Russia relationship is proving to be more than theoretical and has begun to have a real world impact that richer Americans are starting to feel.
Given that the majority of these property purchases are second or third homes the buying is purely discretionary. Whilst no one believes even if Russia advances into Finland and other Balkan States that is will lead to war it will certainly lead to more friction.
South America here has an opportunity to give investors an option which in the medium to long-term could be more rewarding. Why ?
1. London and New York have been and always will be No 1 Terrorist Targets due to their political importance. Even Warren Buffett quoted that sooner or later a nuke suitcase bomb with get through.
2. South America has some wonderful cities. Buenos Aires, Santiago, Rio del Janeiro just to mention a few.
3. Although it is easy to get suspect money into these rich countries like the US it can be very difficult to retrieve it as many are already finding out.
4. South America is a fast growing region with a low population density giving ample opportunities for investment with higher yields available than elsewhere.
Contact the Gateway to South America team to learn about the best investment opportunities in the region. The company is a benchmark for foreign investors wishing to invest in Argentina, Brazil, Chile, Paraguay, Peru and Uruguay, providing expert advice on property acquisition and investment tours. #adp02