Chinese real estate investors have been buying up US real estate in record numbers over the past year. According to a report from the National Association of Realtors, Chinese buyers purchased $59 billion worth of US homes in the 12-month period between April 2021 and March 2022, resulting in an 8.5% increase from the same period one year earlier. Learn about the trend and why it is happening.
Location Makes A Difference
Chinese investors purchased nearly one-third (31%) of homes in California. International buyers, on the other hand, found these states most attractive: Florida, California, Texas, Arizona, New York, and North Carolina.
Prices Of Houses Bought By Foreign Investors
The houses purchased by foreign investors come at an expensive price tag. Average purchase prices were around $600,000 while median purchase prices were almost $370,000. The average purchase price for Chinese investors was a little over $1 million per residence.
Will The Trend Slow Down?
Financial experts predict that the trend is likely to continue. With increasing interest rates, the overall property sales will decrease in the country. However, foreign investors are likely to continue to buy houses as they have the ability to make an all-cash offer, meaning they won’t be affected by changes in interest rates. The increase in international flights and lifting of travel restrictions are also some of the reasons driving this trend.
What Opportunities Does This Present?
If you’re looking to invest in real estate but can’t afford a second home, there are still plenty of opportunities to get involved in the market. One option is to invest in a vacation rental property. This can be a condo or even just a single-family home that you rent out when you’re not using it yourself.
Another option is to invest in a fixer-upper. This can be a great way to get started in the real estate market without breaking the bank. By purchasing a fixer-upper, you can add value to the property through your own renovations and then either sell it for a profit or rent it out for extra income.
Alternatively, you can invest in real estate investment trusts (REITs) that allow you to buy a portion of property or commercial developments. There are many ways to get involved in the real estate market without spending a fortune. Do your research and explore all of your options so that you can find the best way to invest for your needs.
Learn About Investing In Real Estate From The Experts
If you’re interested in growing your real estate portfolio or protecting your current assets, you’ve come to the right place. The experts at Protect Wealth Academy have years of experience in the field and can offer valuable insights into the best way to invest in real estate. Whether you are a beginner or an experienced investor, you’ll gain new insights through our real estate training. With the knowledge you will gain, you will be able to make wise investments that will result in a healthy return on your investment. Contact Protect Wealth Academy today to learn more about how you can grow your wealth.
