Didn't realize that the number was this big. I assume that most of these are second homes. How much is this impacting the housing affordability problem and will/should the US do anything about it? If you use an average sale price of $300k, that is nearly 200k homes per year being absorbed by foreign investment Chinese Investors Buy $6.1 Billion Worth Of US Homes In Past 12 Months (msn.com) The National Association of Realtors (NAR) reported that international buyers combined to purchase $59 billion worth of U.S. residential properties between April 2021 and March 2022, up 8.5% from the same period one year earlier. Chinese Investors accounted for $6.1 billion dollars in home purchases, totaling over 10% of the market.
Big reason why there needs to be some kind of global wealth tax. You got people swimming in money and they need to park it somewhere, and its usually foreign real estate, a lot of it is just unused too.
At least for China we could probably cut this way back if there was a reporting requirement back to the Chinese government...of course this would make us about as evil as they are and hurt US sellers.
Not completely surprising although in the past Chinese investors have focused on Canada especially Vancouver. Maybe the Chinese have decided US real estate is a bargain compared with that in China. This article is actually several years old. One-Third Of Vancouver's Real Estate Market Is Owned By Chinese Buyers
Haven't noticed any Chinese people moving into the neighborhood. But lots of houses sold. Must be elsewhere.
I sold to a lot of Chinese the past 5-7 years - vacation homes that could be rented out to tourists. The ROI is fantastic And not just Chinese, also Brazilians, Columbians, and Canadians.
I would love to sell my house. Wife and I are looking to downsize now that the kids are out of college.
And unfortunately this is one of the reasons why folks that live and work in Orlando can’t afford to buy.
They were vacation homes, not regular homes, but yes, they have also bought regular primary homes as an investment long term. We also have corp's, US ones, buying up homes as well to rent out. They also get involved with tax sales by creating tons of LLC's to bid on them.
I read an article the other day about some of the negative effects of investment/absentee landlords. Things like squatters, trashed properties. It’s very difficult to track down owners and large investors don’t really care. In general, I think this is very bad trend but not a lot that can be done.
I saw that same story. There were squatters in the house. What surprised me was that if it was advertised for rent, how could it go unnoticed? One guy stayed there all day, so I guess if no one came, they had parties at night. This is what happens when a big company buys and rents out a home, too many cogs in the wheel to get the information through.
Its a way to park money that is safer than investing in CCP banks and property that could disappear at any time.
A few years ago I started a contract assignment with a company that built new homes funded by foreign investors. Mostly Asian funding. It was really shady how they were using construction funding to pay for other funding. Luckily the controller decided to stay and they didn’t need me.
Just do it. We moved out of a giant two story colonial plus a fully finished basement to a single level no basement home when I got down to one kid at home. I’m liking it. So much less stuff and maintenance.
