There is a new foreign buyer in town looking to invest quickly in real estate. The French.
With the recent election of Socialist François Hollande as president this month, the wealthy in France are looking for places to park their money. The reason for the rush is the vow of Mr. Hollande to tax income over 1 million euros at a whopping 75 % rate. Also, the tax rate on capital gains will rise to the same level as ordinary income. Those kinds of rates leave no reason to invest in France.
Unlike the Russian oligarchs buying trophy properties, the French buyers are generally looking at properties between $500,000 and $5 million.