WSJ's Robbie Whelan on Foreigners Buying Real Estate in The US.
Feb 20, 2013|
WSJ's Robbie Whelan on Foreigners Buying Real Estate in The US.
Transcript - will not be 100% accurate
There's increasing. Evidence. -- foreigners are buying real estate in the United States Robbie -- from the Wall Street Journal wrote a story about this in today's journal -- carried out the idea. Whose broad term. He maybe he has one of those phones go under the Disney dollars a month that the republic follow their public phone he dropped out. He's on route to your. Service on Robbie they're poking fun you your body you don't. -- I -- about you you've compiled some evidence that demonstrates that foreigners are buying up a lot of US -- state. We have -- we were just. Looking at the old single family rental market which is because. -- were -- -- -- Wall Street investors Olympic -- -- -- there and really there. Any line auctions. Acting local realtors and by Angela on the tickets except cheaply and went out for profit at but up till. Until pretty recently. Is all the code domestic firms doing -- and Adam and -- and if you head. Right at the top. Emerged that are actually you know run by by foreign companies a lot of Canadians -- And -- Australians it's mainly people come from countries have currencies are slightly. Higher than -- -- stronger than our. What is won his Keefe Bruyette and woods because -- that's what do what they put together likes drinks and nine billion. -- keep it BW is that the bank had been studying the market very carefully and they they're estimated that. You know across the country. Predator on detachment could put in about six to nine billion dollars on that is specifically apply. Quote cone. To the market watchers were kind of think how much money has been raised -- The one that we look at historic day are there's one minister from Australia. And -- US masters presidential on. And -- -- actual property and and the US masters is kind of a fun story suggesting. They've -- you know money for Australian retiree. And the thing in Australia cup is that a lot of people when they were higher than that used to buy property. Either Australia or abroad and you want them that your vacation column and you the other one. As. As a rental property considered income and what the company US masters has done. It is institutionalized. The kind of created this pipeline for retirees. To the source of most of their investment. Commonly taken NATO and it by. By. You know under his own injures and -- Australian retiree might actually on a piece about how injures. And renting it out -- What kind of return on equity here they -- -- had a dividend they came out to their investors. It did they're picketing about the who. Initial return -- most of the guys in America. And -- -- -- And there they are -- the registered. A real trust. Which I'm which acquired him in that country at least. To pay out come about -- toward their profits in dividends to their to their investors. Don't know that your -- just pocket the profits. And you're accustomed -- -- investors. I think that's a pretty good return election. It's similar in Australia in record numbers. In there is there. But here these are structure -- -- -- critic turned. And they typically. -- -- wrong but when these guys the institutions coming in by they're not bind a -- three years. They're generally buying it with the idea they're gonna hold it for an extended period of time are they not. Well you know the big question right just when wearing to the -- and and so. We hear a lot with an answer some people's -- actually yeah we are gonna look at her trade partners on the market offers -- going to go. Into the improving market others say were the former -- and basically -- -- could be bought a portfolio to. The public market and you know regular Americans what you -- -- entity. And it is at companies on the order and the people curtail what we plan to sort itself with bigger guys because -- -- -- home. Get out there who you know a couple years will still be looking for more product to -- -- will sell our portfolios somebody else. Got a lot of times they backed it up they'll -- they'll sell is -- date this Australian group might buy it might accumulated thousand homes over three years and then just. Tied up in a bow and sell sell to somebody else. Exactly exactly that's actually in a lot of ways that's the way to go I -- don't wanna be stuck if you. You know because pension fund managers -- -- -- stuck having to Gartner market sell thousands of columns but that's what you look good and decided to do. But unsuspecting delight as well and as telling her company's peak peak practice. Is this why I don't know if bowed down in Jersey but up here I'm talking to realtors and they are bemoaning. The lack of inventory. You guys have an inventory problems and a new York and injured -- Inventory probable cross country and certainly in. Its report that it is well what -- the economy. Look at the -- -- is that last year was the year that. Prices went up because you're quote equity markets fewer distressed sales and market. But 2013 there can be years. Coca-Cola because you're -- and -- and the reason for that. A couple of reasons for big wanted the people don't think that prices have improved. In off forts in Fort -- and prevented marketers focused -- that got a big mortgage in my Al. But it surely economy is improving public including but really it's not area. Filing today at the law. You know it's funny you mention that because I had to investment properties I tried to sell last year. I didn't sell either one at the price and I wanted so -- we needed strategic decision we're not gonna put them back on the market until fourteen. Well so -- try to settle in twelve couldn't were skipping thirteen altogether we're gonna try again. There's a lot of folks like you out there and it got another thing is that when it went down. You know when people do you put their stock market -- immediately -- stepped up by investor investor. When you have all these -- that they are currently these guys really other American firms. Could become a counteroffer right it is it's a much sure thing you can -- vote on the bill -- offer that it is somebody's got to get lining call for a mortgage can pre qualified. -- really it's really. You know it's a no brainer for the stellar when somebody comes offer. That should take that rather than waiting. Two months or something to work out but he's using a -- curriculum or car. I have heard that there are lousy landlords they'll you know like I I in the Phoenix market there's been a lot of this institutional buying going on. And they don't service the properties so when the -- backs up. You call the property manager and and they don't do anything -- me I've heard nightmare here and that down in Jersey where. But I think you're I think -- a wide range you know I mean it they're -- there are some companies that sort of step -- speaker you know there's a whole new company called infrastructure and property. And and then have hire local guys or maybe may be more hands off and it should be it landlords. But it's still are actually acting as Hitler and then there are other guys who complete and smaller -- about 2030 property and market. And they out they IQ you're accurate about that can be problems you know essentially is it -- It's the -- burger and yours ago and people to buy property sort of being -- on. When board that the unity the issue there it brings up it will. You know -- temporarily cut you know island now some former remarkably has busted the way you guys who works for a bank. Injured pretty. -- territories in Australia yeah or landlords in Australia. I'm -- great job on the story thank you very much. No problem that's route Robbie Whelan it's in Wall Street journalists actually today's when he did agree to. This was published on the nineteenth. But you know this. Well would come back and tell -- where I think Rush Limbaugh has done and that's our next.