Selling Homes To Chinese Cash Buyers
China is by far the biggest foreign buyer of residential and commercial property, proposing $24.3 billion of spend in 2014–15 — more than triple the United States and six times the outlay from Singapore, the Foreign Investment Review Board annual reports shows.
Chinese investors like American investors are buying the Bronx.
I think that there are apartment buildings in the Bronx that go between $1.4 to $1.8 million.
I don’t know anything that would want something like that!
They must be investing in more than prisons!
I wonder if it’s the same broker that’s connecting Chinese investors to the Bronx as it is to Australia!
I think that Chinese cash buyers are investing in apartment buildings that cash flow.
Canadian cities look like a safe place to invest to these long-term investors. They are not usually seeking short-term or speculative profits. Most of these buyers are building a legacy to benefit their families for generations.
Key Take Aways To Structure A Deal
- Don’t bring in a buyer unless you know the seller.
- It seems like the broker communities are tight-knit that control the access to the Chinese markets.
- I imagine that it’s ultra-competitive between the middlemen.
- This article says that there are a few people that control all the access to China.
- I imagine that if you showed your cash you would be first in line to access U.S. real estate.
- Make contacts that can help you.
- Selling U.S. property to Chinese cash buyers is different because of the cultures and language.
- Chinese cash buyers like to invest in brands.
- It can take decades travelling to China to build up a list of cash buyers.
Data compiled by the National Association of Realtors shows that Chinese purchasers in recent years have bought an even mix of detached single-family and multifamily houses, with a median price of $425,000. About 69 percent of purchases have been all-cash, while 31 percent have been mortgage-financed.
This article says that Chinese cash buyers are buying Canada and not just Vancouver.
It says that there are positive benefits and negatives to the influx of cash in Canadian communities.
The prices of properties increase and that prices out Canadian families. Especially millennials that are looking to save and purchase their first properties. I imagine.
Rich Hong Kong investors have been ploughing money into British bricks and mortar for decades, snapping up off-plan apartments at weekly property fairs that can then be rented, flipped, held as investments or used as second homes.
“Our thesis — and this is supported by quite a lot of evidence — is that in many ways the international Chinese investment journey is probably just starting,” says Charles Pittar, chief executive of Juwai.com, a website that aims to pair mainland buyers with property developers in places such as Australia, the US and the UK.
Contrary to Opinion
It stands to reason that when one runs out of prospective domestic buyers, the next logical step is to approach those who have been engaging in unprecedented money laundering on a global scale in the form of “real estate purchases” which are nothing more than parking funds offshore (and far away from China’s banks) while leaving the newly purchased house unoccupied.