Chinese buyers have 4 benefits from entering the U.S. real estate market
Chinese buyers have 4 benefits from entering the U.S. real estate market. Wealthy Chinese people are going to the U.S. to "hunt for bargains" on housing. "China Economic Net"…
Chinese buyers have benefited in four ways from entering the U.S. real estate market. Chinese wealthy individuals are on the rise in going to the U.S. to “hunt for bargains” on housing. "China Economic Net" pointed out on the 28th that the U.S. real estate market, which has been declining for six consecutive years, has become a new safe investment opportunity for Chinese investors. Once this opportunity is determined, there will be four benefits: a fall in the RMB exchange rate and asset prices, and an increase in the U.S. dollar and U.S. dollar assets. The report said that compared with China’s housing prices which are still at the top of the mountain, U.S. housing prices are at the bottom. The U.S. real estate bubble began to burst in 2006, and the overall housing price has fallen by 34% to date. The report quoted Goldman Sachs' latest report to investors as saying that the U.S. housing market will recover strongly. Goldman Sachs analysts Joshua Pollard and Anto Savarirajan pointed out that the U.S. housing market has experienced a strong recovery and new homes are expected to surge. This is based on factors such as the rapid decline of foreclosures and invisible inventory, as well as the rise in building permits. According to reports, in the past year or so, investors from all over the world have begun to purchase large quantities of U.S. real estate, with Chinese investors being the second largest buyers. According to statistics from the National Association of Realtors, buyers from mainland China and Hong Kong purchased more than US$7 billion during the same period, while American developers and sellers deliberately reserved all floor or apartment numbers with 8 for Chinese buyers. According to reports, global funds have been returning to the United States since the second half of 2011, and this trend has continued this year. The latest statistics from the British Economist also show that housing prices in the United States are close to the bottom and are completely within the fair value range. According to a study by the International Monetary Fund (IMF) on 55 real estate recoveries around the world in the 1970s, when house prices hit their lowest point, the recovery lasted an average of seven years. The report believes that since the real estate recession in the United States has hit the bottom, the future real estate recovery will have a growth period of at least six years. The report also pointed out that Chinese investors do not only invest in real estate in the U.S. real estate market. There are at least two more ways to choose from: The first is to buy stocks of real estate companies. Just like the stock god Buffett bought the stocks of five real estate companies the year before last. The second is to buy real estate trust funds, that is, choose to buy the same mortgage bonds (MBS) as investor Gross.
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