Despite rupee decline, Indians among top 5 US property buyers

Despite the depreciating rupee, Indians have once again made it to the top five foreign buyers for a bulk of realty purchases in the United States in the year ended March 2013,where it is relatively easy for foreign buyers to purchase homes.

According to data provided by the National Association of Realtors, of the $68.5 billion that foreigners spent on buying homes in the US, Indian buyers accounted for nearly $3.5 billion.

India along with Canada, China, Mexico and the United Kingdom accounted for approximately 53 percent of international transactions worth $68.2 billion, according to a survey by the association.

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Among the reported destination states for buyers from India, the top states were California,Tennessee, Connecticut, and New Jersey.

The main factors influencing the decision to purchase in the US are profitability, security and well-defined property rights despite short term economic challenges the US.

The median price of homes bought by Indians was $ 300,000 (about Rs 1.8 crore), lower than the median price of Chinese homes but higher than what Britons ($ 250,000), Canadians ($ 183,000) and Mexicans ($ 156,250) paid for their homes. As per the data, bulk of properties purchased by Indian buyers were in the suburbs.

“Approximately 90 percent of reported purchases were detached single-family properties and 7 percent were commercial properties orland,” the survey added.

Another interesting fact that emerged wasapproximately 21 percent of the reported purchases were all-cash deals.

International home sales in the US declined in the past year, but are at their second highest level in recent years and are over six percent of total existing-home sales in value, the survey noted.

“Many factors influence foreign buyers’ decisions on where to purchase in the U.S., but the most important are proximity to home country, presence of relatives and friends, availability of job and education opportunities, and the climate,said NAR President Gary Thomas, broker-owner of Evergreen Realty in Villa Park, Calif.