For the past many years, Canadians had been the largest foreign buyers of the US residential real estate but for the first time this year, the Chinese have taken them over for the same. According to the Asia Society and Rosen Consulting Group, during 2010 to 2015 the Chinese spent $93 billion on US homes and condos for living as well as investment gains.
When it comes to commercial real estate buying the spending and investment here has also increased by 70 percent. However, it still lags behind Canada, Singapore and Norway in accordance with the amount of dollars spent by them in comparison to the Chinese.
The Chinese have done so mainly through the EB-5 immigrant investor program through which foreigners can invest capital to get a green card faster. Since the day when the Congress first founded this program in 1990, there has been a total of $11 billion from Chinese which accounts for almost 70 percent from all the countries that ever made such investments.
According to Bruce Pickering, who is the VP of Global Programs at The Asia Society, the growth is very astonishing for the US since it shall have great influence economically. It has given more than 200,000 new jobs through these Chinese investments over two and a half decades.
More than 1200 Chinese families have invested in the program which focuses on properties in the Hudson Yards and it has become New York’s biggest real estate generation now. According to Bruce, the reason for this buying is that these Chinese families want to move to the US and do so by frequently traveling in and out and later bringing their dependents along for the same reason.
The reports say that the Chinese are still more interested to find out more ways to do the same as majority of it is limited to New York, San Francisco and Los Angeles only. They want to settle elsewhere too and they have specifically named Tennessee, North Carolina, Georgia and Missouri for the same reason too. Bruce also says that the Chinese are looking for value; therefore, they are now spread everywhere unimagined and are looking for other places where they can invest in the same way too. They are moving very rapidly in other cities too.
However, greater capital controls are being speculated in the next term so this could mean that there would be lesser individual purchasing for such investments and moving purposes. On the contrary, this can also be seen as an opportunity for people who are predicting it and can make use of it in their side too. The election cycle might be a confusing state for investments but it can still not be denied that the US is still one of the best places all over the world. It also has the most stable economy and has lesser known risks as well. Doing good predictions and working over it effectively and precisely could result in great and enormous fruits here in all areas through calculated investments.
——————————————————————————————————–