Foreign investing is not a new thing, but when people from another country are pouring over $110 billion, that’s billion with a capital B, you should probably take note. In 2015 alone, Chinese nationals have spent just over $8.5 billion on property throughout the US. With these figures one would assume that they are going after industrial, agricultural or commercial interests, and they are. New York’s prestigious Waldorf Astoria hotel now belongs to Chinese investors since it was purchased for a cool $2 billion. But in recent years residential purchases have outpaced all other categories.
So much money is being thrown around that the sheer volume of purchases by the Chinese has single handedly pulled the real estate market out of the hole it was thrown into during the 2006 real estate crash and the ensuing 2008 global financial crisis. Just sit back for a moment and think about that. It took two crisis’ to derail the market and in a mere 7 years was resuscitated by foreign money.
Canadians, America’s northerly neighbors, have been dethroned as the primary foreign investor in U.S. properties. But the questions on everyone’s minds are How? and Why? The truth is that there are numerous loopholes and few restrictions when it comes to foreigners purchasing American property. With billions being spent one may be led to believe that corporate or state funds are being used to scoop up real estate, but it has been shown that purchases are actually being funded by personal wealth.
The reasons to make the purchase are numerous. Many Chinese are, like many wealthy Americans, buying a second home and using it, once again like many Americans, as a vacation property or as an investment property which they will either rent out or resell. However, unlike many Americans, there is an equal amount of Chinese that are purchasing homes and property (usually north of the $500,000 mark) as part of their move to America. However, there exists a third reason which is most likely. Fear. Fear of the falling and ever-fluctuating Yuan. The Chinese currency has been on a downward spiral and has spiked the markets for many years. Those fearing losing their money in Chinese banks have opted to “park” their money outside of China.
The truth is that unless foreign property buying policies change, expect more American real estate to end up in the hands of foreign investors. Recent projections have shown that the amount of money invested will double within a decade.
Article by Wessex Maintenance.
Latest posts by Stefan Campbell (see all)
- 10 Best Sites to Buy YouTube Views - January 7, 2021
- Growthsilo.co Review & Alternatives - January 7, 2021
- How to Buy Twitch Viewers That Are Real (Best Sites) - January 3, 2021