Chinese Investment in American Real Estate
Chinese investors have been acquiring real estate market in San Francisco and Silicon Valley. The Chinese are targeting a variety of properties, including prime homes and commercial properties.
Some of the wealthy Chinese have been investing in US in order to gain EB-5 visa status, through the American immigration investment program focused upon American regional centers. The business owners must provide a minimum of 10 jobs. Investment in both commercial rental properties and residential real estate has accelerated in 2010 and 2011.
The appreciation of the yuan is one factor motivating Chinese investment in U.S. properties. Also, because of the low bank deposit rates and the poor Chinese stock markets, knowledgeable investors are placing funds into stable U.S. real estate in prime areas. The rapid escalation of real estate prices has been followed by rapid decline in values and more stringent lending controls in China.
Many Chinese entrepreneurs are investing for business purposes as they start trading and other businesses in the U.S.
As a measure to encourage more foreign investment in American real estate, Congress has proposed policies to facilitate immigration for investors who acquire real estate having a value of more than $1 million. Certainly, Congress sees the benefits of highly educated Chinese doing more U.S. based business and also moving to the U.S.