Thursday, December 17, 2015
Chinese Buyers are Buying Real Estate Across American and Beyond
The New York Times recently reported that Chinese buyers have been buying luxury high end apartments in London wealthier neighborhoods in Vancouver Canada and luxury condos in New York City and larger home in the Silicon Valley. These buyers are buying higher end properties in major cities which doesn’t affect the overall real estate market, but it does in more dense populated areas like New York and San Francisco. This pushes residences in these cities to pay more for living space and pushes up rent. These Chinese purchases make up a small amount of the overall sales in the United States. This is a disproportion of their money in high end properties according to the NT Times. They have bought one in every fourteen homes in the $1million plus range in New York. They are also buying land in the Antelope Valley. There are real estate agencies and marketing firms promoting fee simple properties in the Antelope Valley. Land has no maintenance needs so the buyer can sit and wait and just pay the property taxes. Larger condo’s need maintenance, HOA fees and security. The Chinese government doesn’t allow long term ownership of property in China. It is usually for a period of years, so property can’t be passed on to children. Additionally, in China land has to be development. This is partly why there are ghost cities in China, since the land was bought but requires development in a period of time in order to retain the property. This is why land within the path of growth that can be pass onto offspring is so enticing. The Chinese stock market and government cannot be trusted to provide security in an investment. This new overseas investment is helping property values in Lancaster and Palmdale especially closer in property to development.