Table of Content
- Is Santa running a bit behind this year? Check out these great toy sales from Amazon's Very Merry Deals event
- Find the best real estate agent and mortgage lender with international expertise
- Bay Area homeowners stress about holiday chill
- How do the Chinese and Hong Kong nationals intend to use their US property?
- News
This CNN/Money report details how buyers from China are increasingly opting for U.S. real estate, often paying in cash and preferring California to most other states. I’d like to know who exactly thought it was a good idea to allow non-citizens to buy US property. Imagine if the US was buying up all the property in some other country, imagine the outrage! But it’s happening right under our noses and no one seems to care. 150 years ago it was the Irish-Americans, 100 years ago it was the Jews, 30 years ago the stories were about Japanese buyers buying up Hawaii and commercial RE in the US.
They’re richer — and they have more access to credit. The Chinese have greater means to buy, thanks in part to the country’s economic growth and, in recent years, a boom in credit. Furthermore, any capital gain on the sale of a US property is taxable, and the non-resident foreigner must file a tax return . Hire a reputable property management company to look after your investment while you are away. California remained the top destination for the Chinese, with 34% of all Chinese purchases last year (April 20- March 21) taking place in the state.
Is Santa running a bit behind this year? Check out these great toy sales from Amazon's Very Merry Deals event
Alisha Chen, owner of Irvine-based Cornerstone Real Estate International, has seen the influx of foreign capital, too. The climate, education system and relative proximity to China have made California a popular destination for Chinese buyers. Chinese consumers may have soured on some American products, like iPhones, but they have only sweetened on U.S. residential real estate.
Buyers have further disrupted the market by offering cash for houses, often sweetening the deal by throwing down numbers well above the asking price. Several lenders in the San Francisco area now specifically cater to Chinese buyers. The median price of a home sold to a Chinese buyer dropped from just under $530,000 in 2017 to $439,000 in 2018, according to the Realtors. And while California is still the favorite among Chinese buyers, they are now moving into markets in Texas, Georgia and Florida. Chinese investors were the most active buyers of US real estate last year among foreigners — spending a record $6.1 billion on homes mainly in Florida and California, according to the National Association of Realtors. Global capital is flowing into the US and it’s not buying govt debt.
Find the best real estate agent and mortgage lender with international expertise
In addition, housing accounts for a significant amount of most Americans’ household spending, so you’ll want to be sure you’re getting the most value for your buck. The dollar volume of homes purchased by foreigners from April 2018 through March 2019 dropped 36% from the previous year, according to the National Association of Realtors. DeLeon's marketing strategy includes videos and a website in Chinese. They also bought a Mercedes van to take buyers to open houses and have a plane to show Chinese the splendor of the Bay Area. The plane has a lucky Chinese number on its identification markings -- an eight, not one but two of them. Local realtors are doing just about everything to get a slice of the Chinese pie.
The Chinese were the leading buyers for the seventh consecutive year, purchasing an estimated $13.4 billion worth of residential property. Yet that was a 56% decline from the previous 12 months and comparatively the biggest percentage drop of all foreign buyers. Chinese economic growth slowed to 6.3% in 2019 compared with 6.9% in 2017, when the previous buyer survey began.
Bay Area homeowners stress about holiday chill
As technology jobs spread across the U.S., it seems more Chinese workers in the sector are starting to buy properties in new locations. My guess is that, since more than half the properties in Vancouver now cost more than a million dollars, the Chinese have tired of this area and have headed south. "The price doesn't matter, 800,000, 1 million, 1.5. If they like it they will purchase it," said Helen Zhang of Tarbell Realtors. Zhang was coming out of one of the models with a Chinese couple pushing a toddler in a stroller and carrying an infant. As our CNBC camera crew interviewed Zhang, another group of potential buyers roaming the neighborhood models raised their brochures to hide their faces when they saw the camera. "The price doesn't matter, $800,000, 1 million, 1.5. If they like it they will purchase it," said Helen Zhang of Tarbell Realtors.
After the money dries up the LA County courthouse steps will get a lot of action. When will that happen … who knows… it is already been far to long after the middle class American was forced to give up and become a rentier serf to the fiat dollar. 30-year mortgage rates have fallen to a historic low of around 3%, spurring demand for housing in the country. However, due to years of underbuilding and a decline in listings, supply has not kept pace with demand. If you intend to utilize your investment property as a vacation home, be aware of peak season and rental demand during certain months so you can fit in your ideal holiday in the United States.
As a result, many Chinese and Hong Kong investors are wary of overseas markets because of their insecurity and the start of an unknown process. However, buying US real estate is a great investment and this article will look at the primary considerations a Chinese and Hong Ko should make while conducting cross-border real estate transactions in the United States. Chinese buyers were followed by Canadians ($8 billion), Asian Indians ($6.9 billion), U.K.
These lenders may also consider your rental income in the United States when determining your eligibility for a mortgage in the United States. As of 2022, China remained the biggest foreign buyer in terms of the dollar amount of residences purchased. However, due to the increase in average purchase price to $1.0 million (from $710,400 in the prior period), Chinese purchased existing residences worth $6.1 billion, went up 30% from the prior period.
The corrupt politicians, bureacrats and their families are the ones buying. I hate the bigoted patriot religious-type, to the core. If the xenophobia is targeted against racist, corrupt Chinese immigrants what’s the problem. We are talking about a VERY specific subset of ethnic immigrants that have a total disregard for American culture and are actually attempting a soft invasion of our country.
But no matter what, the indirect impact on consumer confidence in the Chinese real estate market and broader financial markets — in China and the U.S. — will be significant. CNBC reported that 39% of foreign buyers in Manhattan are Chinese, up from 12% last year. Passenger travel to the US from Beijing has increased 141% in the last 5 years and has increased 127% from Shanghai. Many of Lan Bowling’s Chinese clients look to Palo Alto real estate as a safe haven, but the very presence of mainland buyers can complicate predictions about prices.
According to the National Realtors Association survey, the Chinese spent $22 billion on U.S. housing in the 12 months through March — 72 percent more than they spent the year before. Among foreign buyers, Canadians ranked highest in the share of transactions, at 19 percent, but the Chinese bought by far the most expensive homes, with a median price of over half a million dollars. That’s compared to the $213,000 spent by the average Canadian buyer of U.S. real estate, $141,000 spent by the average Mexican, and about $200,000 spent by the average American. Hinese citizens have represented the largest share of foreign buyers in the US real estate market for the last six years, outpacing every other country by both number of residential units purchased and total dollar amount spent. Buyers from China bought 40,400 units totaling $30.4 billion between April 2017 and March 2018, the latest data available from NAR.
They are using a weak dollar to purchase property and fast track to a green card/ possible citizenship. They have dollars that are losing purchasing power every day might as well buy a property with that money. If their economy akes a dump they can come here live off of us. Yes, Chinese citizens can buy a house in the US. There are no restrictions on foreigners buying property in the US, and there is a large and vibrant market for people looking to invest in US real estate. In addition, the process of buying a house in the US is relatively straightforward, and there are many resources available to help foreign buyers navigate the process.
With that said, I do believe many of those purchase are foolish purchases at the time. Yet the never ending QE makes the genius out of a retard. If interest rates keep trending upward for the next couple of years, the housing market is going to be gutted. The opportunity to lock in a 3.3% 30 year mortgage may go down in history as the lowest rate in US , ever.
About a third of Chinese buyers purchased property in California, although that figure was down from the previous year. The next most popular destination for international buyers was Texas, especially for Indian and Mexican buyers. Arizona and New Jersey rounded out the top five, with North Carolina, Illinois, New York and Georgia not far behind. Many buyers were buying vacation and rental properties and foreign investors are expected to continue to rise, despite US inflation increase keeping citizens from buying, according to NAR. Zooming in, many of California’s individual investors who real estate brokers work with on a regular basis hail from China.
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