Investors from Down Under Flocking to Buy Foreclosed Houses

June 18th, 2009 | Tags: Foreclosed Houses

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Investors from down under are flocking to buy foreclosed houses mainly in southern Florida. So far the common scene has been the crowding in of Germans, British and South Americans to shop in the foreclosed markets. But lately the Australians are also coming with pockets full of cash. Their favourite haunt is Tampa Bay and St. Petersburg where foreclosed houses are selling for peanuts.

Peter McNally has come from 9,000 miles and nine time-zones distance looking around for bargain deals. He sounded St. Petersburg Times about bargains available in the real estate market. McNally has partly retired from his string of fitness clubs in Brisbane. Touching seventy he looks fit as a fiddle going around with his two sons Jason and Damian. They want to scoop up property in bulk and get these marketed to fellow Australians hunting for property in Florida.

Cheap property is lying around everywhere thanks to the foreclosure crisis. The McNally’s want to set up a syndicate for the investors coming from kangaroo land. Homes are now available for something below $100,000. The Australian dollar right now carries more weight than its American counterpart. This increases the purchasing power of the McNally’s. The real estate market here is much cheaper than that of Brisbane. For Australians it makes more sense to invest in Florida than places like Nevada which is further away. Jason McNally said, “In Australia we’re used to paying $400,000 for the average ordinary home.”

Initially the McNally’s were eyeing the cheap housing market in Detroit but then they quickly estimated that that a falling auto land would not be right for those looking for happy holidays.

McNally explained that prices of real estate are comparatively much higher than USA because the construction section in Australia is still anemic. This pushes up prices. In Australia credit laws are extremely tough and people cannot just walk away from loans with impunity. Banks go after the last penny in the pocket to get their dues. Consequently the Aussies are very cautious about taking loans.

The McNally’s are combing through the best possibilities. After cruising down the west Floridian coast they peeped into the market of Fort Myers. Then they plan to cover Alligator Alley and find out what is cooking in the condos of Miami. What they are seeing is overwhelming them with the wealth of alternatives. Indications are there that their first preference will be Tampa Bay.