Law Encourages Koreans to Buy U.S. Real Estate

Here is an interesting piece of news from Realtor.org:

Worldwide, Koreans could spend at least $4 billion on overseas homes in 2007 as a result of the changes made by the Korean government last year that allow Korean individuals to make as much as $1 million in foreign investments, analysts say.

Koreans are expected to invest nearly $2 billion in U.S. residential property, up from $1.27 billion the year earlier, says Brian Shaffer of the International Real Estate Trade Organization.

Much of the money will likely be directed to U.S. cities with large Korean populations, including San Francisco, New York, and Atlanta, to take advantage of lower home prices stemming from the weakening U.S. housing market.

Observers say the lion's share of the money will be invested in Los Angeles, which has one of the world's largest Korean populations outside the Asian nation.