Chinese investors buying homes in San Francisco

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Chinese investors buying homes in San Francisco

Postby goliathsam » Wed Nov 23, 2011 6:34 pm

Chinese investors are accelerating in their purchase of homes and other real estate in United States. These include high end homes in prime markets in San Francisco and New York. There are investment tours for Chinese who want to take advantage of lowered America real estate prices. Chinese buyers are investing for future profit as well as for personal and family reasons.
Many Chinese buyers are purchasing for their children or relatives, including homes for children going to school in the U.S.
While China's ultra-rich have been buying property in the U.S. for years, the buying tours are new, made attractive by still-rising Chinese income levels and American real estate prices that have been falling for two and a half years.
Other Chinese buyers are targeting foreclosed commercial properties to take advantage of the depressed prices.
Chinese companies that are cash rich are purchasing properties at the lowered prices from American businesses struggling due to the global debt crisis. This international investment has been revealed when the Aluminum Corp. of China, Chinalco, the world's largest aluminum producer, invested $19.5 billion in Rio Tinto Group.
China has lowered exposure to the global financial crisis because the Chinese government has imposed controls to reduce China's access to the international capital market.
The number of Chinese millionaires has escalated in recent years. At the same time, the Chinese real estate market has cooled and Chinese stock prices have stagnated after the boom years.
There has been substantial outflows from China as Chinese investors seek international bargains and the relatively more stable U.S. real estate market.
Chinese investor groups are paying thousands of dollars to visit homes in prime markets such as San Francisco and New York. Individual investors often buy homes for their children instead of renting homes in the San Francisco region with the simultaneous goal of investment appreciation.
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