Foreign property investors in the U.S. have begun to consider looking elsewhere due to President Donald Trump’s travel ban on seven countries that predominantly have a Muslim population.
Trump signed an executive order in late January that prohibited citizens of Sudan, Somalia, Libya, Syria, Iran, Iraq and Yemen from entering U.S. soil. As a result, investors from the Middle East and Africa became concerned over the order’s potential impact on their portfolios.
Some have considered divesting their properties and turn their attention to other markets, including Australian listed property trusts, while others remain unperturbed by the crisis.
The travel ban’s effect on investor sentiment manifested itself when London-based property broker Rokstone experienced a 40 per cent increase in inquiries amongst foreign buyers a few days after Trump issued the executive order.
These interested parties comprised Asian and Middle Eastern buyers that are mulling over other market choices, due to the new immigration policies and visa rules in the U.S., according to Becky Fatemi, Rokstone managing director.
Industry experts believe that the ban may have significant consequences for the real estate market in the U.S. For example, some foreign groups that are looking for options for commercial properties and other asset classes have abandoned their plans, the experts said.
And not because these investors did not reap good returns. On the contrary, industry insiders assumed foreign buyers are worried that the new rules will somehow make it difficult for them to acquire properties.
Property investments have widely been considered to be a lucrative choice due to promising returns, yet you need to weigh in on how a country’s government regulations could affect the market, especially if you plan to invest in real estate over a long-term period. For better protection, seek professional help from experienced investment firms that will help you finding growth opportunities for investment.