International Buyers

International home buyers are a significant component of the Florida real estate market. While home buyers are drawn to Florida for a number of reasons, differences in the characteristics of the transaction are evident between domestic and foreign buyers and also between international clients from various countries and regions of the world. Perhaps most importantly, foreign buyers are drawn to Florida largely because the state is viewed as a desirable location, making it a top destination for buyers seeking a second home or investment property.

Region of Origin of Foreign Home Buyers

With home prices down across the state, international buyers were able to buy discounted properties with 14 percent purchasing homes under $100,000. One-quarter of homes purchased by foreign buyers in the past 12 months sold for between $100,000 and $199,999 while a nearly equivalent share of homes (22 percent) were purchased for prices ranging from $200,000 to $299,999. One out of 20 properties purchased by foreign buyers sold for at least $1 million. The median purchase price for all reported home sales in this survey was $250,000.

Price of Homes Purchased by Foreign Buyers

According to the 2008 Profile of Home Buyers and Sellers, 93 percent of all home buyers used mortgage financing to purchase their home. Among recent foreign buyers in Florida, use of mortgage financing was less frequent. Overall, 32 percent of foreign buyers financed their home with a mortgage while 67 percent paid cash with no mortgage financing.

Financing the Home Purchase

Many foreign buyers (16 percent) purchased a property to use exclusively as a vacation home. Fourteen percent purchased a home to be used as a rental property. Given the limitations on the length of time that foreign buyers may be able to personally use their property, 24 percent of sales were for a dual use – as a vacation home for the buyer’s family and friends and as a rental property at other times. 7 percent of international buyers purchased their property as a retirement home.

Intended Use of Home

The likelihood that properties may have a dual use is also reflected in the length of time that buyers plan to personally use them with shorter intended use among those that also plan to rent their property to others. Nearly one in ten (8 percent) buyers plan to personally use the property less than one month per year. Larger percentages expect to personally use the property they purchased between one and two months (20 percent) or between three and six months (46 percent).

Months Each Year Buyers Plan to Personally Use Property

DESTINATION OF FOREIGN HOME BUYERS

The Miami-Fort Lauderdale area was the most frequently reported location of a home purchased by a foreign buyer in Florida. More than one in four (27 percent) foreign buyers purchased a home in the area, followed by 11 percent who purchased a home in each the Orlando and Sarasota areas. Tampa, Fort Myers and Naples rounded out the top six accounting for at least 5 percent of purchases by foreign buyers. The remaining 32 percent of purchases were in other areas of Florida.

Top Destinations for Foreign Home Buyers

Miami - Fort Lauderdale - Miami Beach

Orlando - Kissimmee

Bradenton - Sarasota - Venice

Tampa - St. Petersburg - Clearwater

HOME BUYERS FROM CANADA

Among all recent foreign buyers in Florida, Canadians accounted for 26 percent of home sales. Within this group, 11 percent purchased a new home compared with 14 percent of all foreign home buyers. Just over one in three (35 percent) purchased a condo and almost half (49 percent) purchased a detached single-family home.

CANADA - Type of Home Purchased

Approximately four in ten (44 percent) homes purchased by Canadians were located in a resort area and about one-third in a suburban area.

CANADA - Location of Home Purchased

The median price of homes purchased by Canadian buyers in the past year was $190,000. More than half of sales were for properties priced at $200,000 or less.

CANADA - Price of Home Purchased

Approximately four-fifths of Canadian buyers purchased their home without using mortgage financing.

CANADA - Financing the Home Purchase

A majority of homes purchased by Canadian buyers are for use as a vacation home with a smaller percentage indicating that the property will be used as both a vacation and rental property. Fewer buyers purchased properties in Florida exclusively for investment purposes or as a retirement homes.

CANADA - Intended Use of Home

More than six in ten (62 percent) buyers plan to personally use the home they purchased for 3 to 6 months each year.

CANADA - Months Each Year Buyers Plan to Personally Use Property

Miami-Fort Lauderdale, Bradenton-Sarasota and Tampa-St. Petersburg were the three most frequent destinations for buyers from Canada.

CANADA - Top Destinations for Home Buyers

HOME BUYERS FROM THE UNITED KINGDOM

Home buyers from the United Kingdom accounted for 16 percent of home sales made by foreign buyers in Florida in the past year. Seventeen percent of buyers from the U.K. purchased a new home while the remaining 83 percent purchased a previously-owned home. A much larger share of U.K. buyers purchased a detached single-family home (65 percent) compared with all recent foreign buyers (52 percent).

United Kingdom - Type of Home Purchased

A large share of the homes purchased (46 percent) were located in resort areas with an additional 28 percent located in the suburbs.

United Kingdom - Location of Home Purchased

The median price of a home purchased by a buyer from the U.K. was $292,000, somewhat higher than the typical purchase price among all foreign buyers of about $250,000.

United Kingdom - Price of Home Purchased

Around six in ten (61 percent) U.K. buyers used no mortgage financing when purchasing their property.

United Kingdom - Financing the Home Purchase

Almost four in ten (39 percent) U.K. buyers plan to use the home they purchased for their personal use as a vacation home. An additional 28 percent expect to use their property as both a vacation home and as a rental property.

United Kingdom - Intended Use of Home

A relatively large share (33 percent) of U.K. buyers plan to personally use their property for less than two months per year.

United Kingdom - Months Each Year Buyer Plans to Personally Use Property

The Orlando area accounts for the largest share of home buyers from the United Kingdom (31 percent) followed by the Bradenton-Sarasota area (20 percent).

United Kingdom - Top Destinations for Home Buyers

HOME BUYERS FROM WESTERN EUROPE

One-fourth (22 percent) of recent foreign home buyers were from one of several countries in Western Europe other than the United Kingdom. German buyers accounted for 7 percent of purchases followed by buyers from France at 5 percent. A majority (54 percent) of buyers from Western Europe purchased a detached single-family home while almost three in ten (29 percent) purchased a condo.

Western Europe - Type of Home Purchased

Thirty-four percent of Western European buyers purchased a home in an urban or central city area, while 33 percent purchased a home in a suburban area and 25 percent purchased a property in a resort area.

Western Europe - Location of Home Purchased

The median price of homes purchased by buyers from Western Europe was $344,000, much higher than the median among all buyers of $250,000.

Western Europe - Price of Home Purchased

Nearly three-quarters (71 percent) of buyers from Western Europe paid cash for their property and used no mortgage financing.

Western Europe - Financing the Home Purchase

Homes purchased exclusively for the personal use of the buyer, their family and friends accounted for half (49 percent) of transactions among Western Europeans. One-quarter (25 percent) expect to use their property personally and also make it available as a rental at other times.

Western Europe - Intended Use of Property Purchased

Over half of (53 percent) property buyers from Western Europe plan to personally use their property in Florida for 3 to 6 months each year.

Western Europe - Months Each Year Buyer Plans to Personally Use Property

Three in ten home buyers from Western Europe purchased a property in the Miami area. The Bradenton-Sarasota and Tampa-St. Petersburg areas were the next more popular destinations.

Western Europe - Top Destination for Home Buyers

HOME BUYERS FROM LATIN AMERICA

Home buyers from Latin America, including Mexico, Central America, South America and the Caribbean, accounted for 23 percent of recent home purchases by foreign buyers. Nearly one in five (18 percent) of buyers from Latin America purchased a new home in Florida. Overall, 44 percent of new and previously-owned homes purchased by Latin American buyers were detached single-family properties while slightly fewer (39 percent) were condos.

Latin America - Type of Home Purchased

For Latin American buyers, a central city location was a far more frequent choice compared with other foreign buyers. Fifty percent of home sales to Latin Americans were in a central city compared with 28 percent among all foreign buyers.

Latin America - Location of Home Purchased

The median price of a home purchased by a Latin American buyer was $238,000, only slightly lower than the median among all foreign home buyers in Florida.

Latin America - Price of Home Purchased

Over four in ten (44 percent) buyers from Latin America purchased a home using mortgage financing, greater than the overall percentage among foreign buyers of just 32 percent.

Latin America - Financing the Home Purchase

A somewhat smaller percentage of buyers from Latin America (35 percent) purchased a home in Florida exclusively for their personal use as a vacation home compared with recent foreign buyers overall (46 percent). There was also a greater degree of uncertainty about the intended use of the property with 13 percent of REALTORS® indicating they did not know the planned use.

Latin America - Intended Use of Home Purchased

A significant share of REALTORS® (39 percent) was unable to determine the length of time the buyer planned to use their property. Still, 33 percent of Latin American buyers indicated that they planned to use the home they purchased between 3 and 6 months each year.

Latin America - Months Each Year Buyer Plans to Personally Use Property

The Miami area was the overwhelming choice of buyers from Latin America. Six out of ten (60 percent) purchased a home in Miami, followed by 10 percent who purchased a home in the Orlando area.

Latin America - Top Destinations for Home Buyers