Why Chinese buyers prefer U.S. housing market, specially Florida?
According to the ” National Association of Realtors” Chinese investors have overpass all others in total purchases over the past year and surpassed the buyers from the next four countries combined. Chinese investors median home prices was closely $550,000.
The Chinese invested a total of $27 billion over the past year. From April 2015 to March 2016 foreign buyers bough more than $100 billion in residential properties in the U.S. Likewise, the total volume of sales was still the second highest since 2009.
Nevertheless, the U.S.A. economy remains to outperform almost all overseas economies, as sort of an stimulation among the blackness. And financial commotion overseas, especially in Europe, has driven foreign buyers here.
Assumed the instability in the worldwide financial markets, U.S. real estate seems to be a safe, more secure investment. And U.S. real estate is still low-priced compared to properties in Asia, for example, so it has added attractiveness.
Inside the U.S., five states accounted for half of the transcontinental acquisitions, led by Florida
with 22% of the total. California had 15% of the purchases, Texas 10% , and Arizona and New York at 4% each.
The most predominant purchasers in the tropical atmospheres of Florida and Arizona included Latin Americans, Europeans and Canadians. Asian purchasers congregated to California and New York, while Texas had a mix of these groups. Since demand for single-family rentals continues solid in Texas, property there may also be an asset play. Temporarily, the Chinese population remains to developed and expand on great evolution in that country. Even though the progress there has slowed since its heyday, China’s economy has produced many prosperous people. They are looking for new and better investments, and U.S. real estate meets that definition.
The disturbance in the United Kingdom has also helped the U.S. property market.
London had been a hotspot for transcontinental investors, but the financial center has slowed unavoidably since the Brexit conclusion.
U.K. home buyers had been the fourth-largest consumer of U.S. real estate. If a downturn hits the U.K., which is possible with the execution of Brexit, this would also limit the buyers of real estate here.
But the economic outcome from Brexit is not yet acknowledged. What is known is that newcomers of all types like U.S. real estate as the place to invest.