An increasing number of foreigners are interested in buying real estate in one of the major American cities.
The rich around the world are constantly looking for new investments, and for some that means buying real estate in the United States. Foreign nationals contribute 6 percent to the U.S. real estate market, and some parts of the country are disproportionately targeted by foreign buyers. Voice of America journalist Elizabeth Lee reports from Southern California, which attracts many foreign investors.
“Feng Shui” is a superstition for skeptics, but for many Chinese it is necessary for happiness and health at home. When Katie Weeks asked to buy a house in the United States, she also paid attention to the elements of feng shui.
“I wanted my home to be full of light, and to be spacious. It doesn’t have to be big, but when you enter, you have to feel cheerful. “
Weeks is one of the growing number of foreigners who are interested in buying real estate in one of the larger American cities. Jed Kolko is the chief economist at the online real estate agency Trulia.com.
“In some parts of the United States, there is a huge demand from foreigners, and that dictates value and keeps prices high in many areas. We see this most in parts of Los Angeles, Miami and New York. “
Los Angeles real estate agent Angela Wong says she had 30 percent more clients from China last year.
“Many of these clients buy in America because of their children’s education. That is the number one reason. The other is that they want to emigrate to the United States. “
More than half of customers from China come to California. A new residential area in Irvine, California is attracting the attention of potential buyers from China.
“We have applied ‘feng shui’ to everything we have. We also have a street name advisor. When we gave names to the streets, it was important to us that they were appropriate in terms of superstition and simple pronunciation “, says entrepreneur Emil Haddad.
The Chinese are certainly not the only ones buying in the United States. Investors from 68 countries have invested in real estate in America. Real estate seller Shannon Miller says that most foreigners pay in cash, and that domestic buyers, e.g. in Los Angeles, they are unlikely to be strong competition in the real estate market because they do not have cash.
“Most clients try to buy a house in the traditional way – with a loan. And then you have customers with cash and they overtake them. They also appeared at a time when there was a lot of real estate under seizure on the market. Now their share is everywhere. “
Another reason to buy a home in the United States is the EB-5 visa. In order to qualify for that visa, foreigners not only have to invest a certain amount in commercial companies, but they also have to own real estate on American soil.
Economists predict continued growth in real estate prices. They also do not expect foreign buyers – who want to increase their earnings to the maximum – to sell their real estate in the near future.