To Market They Go

Foreign buyers may be the lifeblood of the American real estate market—and it’s already proving true in South Florida.

“According to the National Association of Realtors, foreign buyers are keeping our market going,” says Denise Rubin, principal of Denise Rubin Group in Aventura, one of the top Prudential Companies in the country. “And they’re saving our housing market in that they’re going to continue buying.”

Rubin says that 18 of her last 20 sales were to foreign buyers over the course of a few months. “And in the last quarter, those were predominantly South Americans—there were five from Brazil, two from Venezuela, one from China, one from Canada, one from Russia, one from Ecuador, one from London, one from Mexico and one Chile. Every single one of them bought with cash. And I’m not talking about $50,000 investment properties—I’m talking million-plus properties.”

She did have two sales to American buyers, but they both got mortgages—and those were not easily obtained. “It was very difficult,” she stresses. “They had to put a lot of cash down, and the mortgages were small.” Rubin says that one of those properties, despite appraising at only $1.5 million, sold for $2 million. “I have a knack for getting record-breaking sales even though the foreigners come here thinking they’re going to get a steal,” she says. “They may come with those intentions, but you just can’t keep the emotions out of the equation because for many, the whole idea of the white picket fence still exists. People envision coming to Florida and they picture themselves in a boat, swimming in their pool…the wife falls in love with the house and they get swept up in the whole thing, so they buy it despite the price.” While a certain percentage of foreign buyers do come real estate shopping in Florida with a figure in mind and a determination to stick to their guns, when families are involved, it’s a different story. “Emotions can take over, and that’s never going to change,” Rubin points out.

Because the market has changed so drastically and has recently seen such an influx of cash-bearing foreign buyers, Rubin had to rethink and revise her entire marketing strategy. “I have some beautiful listings, so buyers seem to find me,” she says with a laugh. “But my marketing has changed a lot. It’s become very international. I belong to Immobilia and three or four other international groups. I also have an international team of agents—one went to Argentina for a month, another to Brazil…. Fine Homes now has an international edition. I have ads out in Russian that I can’t even read!” Rubin also has an Internet program that translates clicks into 22 different languages. And, like any other business, success has everything to do with relationships. “Having done this for 34 years, I’ve forged relationships with international buyers, some that go as far back as the boom days of the 90s,” she says.

So what is behind this tide of foreign buyers that continues to flow steadily in? “A couple of things are really important,” Rubin says. “One: when the prices are viewed from local currencies, most foreign buyers get a better deal. And two, the continued depressed state of the U.S. housing market combined with the depressed dollar make it more attractive to foreign buyers.”

Almost a quarter of those foreign buyers are choosing Florida, making it their number one choice—for obvious reasons. “It’s the lifestyle,” Rubin says. “California is number two, but it’s a far second.”

Inventory is dissipating, particularly condos, which Rubin says are foreign buyers’ property of choice, accounting for about 77 percent of their purchases. “I think it’s because so many of them have not just second homes, but four or five homes,” she says, “and with condos they don’t have to worry about maintenance.”

And with the condos being snapped up at the rate they are, Rubin believes that new development will be visibly on the rise in the near future. “If anyone thinks there is nowhere left to build in Aventura, they’re wrong,” she states. “I think we’re going to start seeing cranes on the horizon again. They rip down restaurants and tear down old storage places to make room to build. If there are buyers, they’ll find a way!”

For more information, contact Denise Rubin Group, 305.409.0019 or visit deniserubin.com.