With Britain’s recent announcement about ending its membership in the European Union, many American luxury real estate brokers are curious as to how it may affect high-end properties in the U.S. Numerous news reports indicate that “Brexit”, as the exit is referred to, could result in wealthy foreigners investing in luxury properties in the U.S.
The hope of many brokers is that the overseas investors in the London market may decide to take their money stateside and unload their current properties. For many of the wealthiest investors, the central London real estate market had been a safe haven. According to research conducted by Knight Frank
, nearly three-quarters of newly constructed residences in central London in 2013 were purchased by buyers from Hong Kong, China, Singapore, Russia, and the Middle East.
President of New York-based brokerage Compass
, Leonard Steinberg, said that he believed major centers will do very well with foreign buyers, and that any luxury real estate will fare very well with the European-centric audience. Some of the areas mentioned that may be the focus of moneyed buyers include Los Angeles, New York, Miami, and Chicago.
The Big Island of Hawaii is a prime destination of luxury property investors as well, and considering mortgage rates will likely remain at historic lows or even go lower as a result of the UK’s exit from the EU, now is the time to buy. Whether investing in your first luxury property or trading up to the Big Island home of your dreams, this may be a once-in-a-lifetime opportunity!