Boston, MA (PressExposure) September 28, 2011 -- The latest real estate figures from Florida suggest that the real estate investment market in the state is healthy, according to Alternative Asset Analysis (AAA).
The alternative investment advocacy group suggested that the fact that Florida homes are so popular with foreign investors is an indication of the strength of the real estate market. Anthony Johnson, an analysis partner at AAA, explained, "The fact that so many foreigners are putting their money into Florida real estate is another indicator that people want to steer clear of traditional stock market investments during these volatile economic times."
The statement followed the release of statistics showing that foreigners spent $12.7 billion on Florida real estate last year. Canadians accounted for 39 per cent of this and Brazilian investors accounted for 8 per cent of the purchases.
British investors made up 7 per cent of the buyers, while investors from Germany, Mexico, France, Argentina and Colombia all flocked to buy up homes in Florida - largely as investment prospects.
Interestingly, only 12 per cent of the buyers questioned said they plan to spend more than half the year in their Florida properties, suggesting that the purchases are seen very much as an investment opportunity.
Mr Johnson added, "It's easy to see why people are less willing to risk their money in traditional asset classes at the moment. Real estate is seen as a safer bet by most, with returns that can easily outperform equities."
AAA supports alternative investments and is particularly keen to promote investment in socially and environmentally responsible asset classes, such as forestry. Firms like Greenwood Management, which operates sustainable forestry plantations in Brazil, offer investors the chance to buy plots of land and make regular returns from the managed forestry projects. While Florida is a great center for real estate investment, Brazil is being seen as a major center for sustainable forestry, as managed plantations provide wood and charcoal that helps to prevent deforestation of the native rain forests.
Forestry investments have become a popular focus for both pension funds and institutional investors. In 2008, Greenwood Management ApS was unique in offering forestry investment products for smaller investors in Europe using the forestry unit model. Similar models have since been developed with great success in countries such as New Zealand.