All
Members
Companies
Blog
Forums
Podcast
Webinars
    User Log in  /  Sign up
  • Forums
    Newest Posts Trending Discussions Followed Forums Real Estate News & Current Events General Landlording & Rental Properties Buying & Selling Real Estate Deal Analysis See All
  • Education

    Read

    BiggerPockets Blog BPInsights: Expert Analysis Coronavirus Content & Resources Guides Glossary Reviews Member Blogs

    Watch

    Webinars Video Library Financial Independence Blueprint Intro to Real Estate: Rentals

    Listen

    BiggerPockets Real Estate Podcast BiggerPockets Money Podcast BiggerPockets Business Podcast Real Estate Rookie Podcast Daily Podcast (Audio Blog)

    Topics

    Business Operations Finance Finding Deals Property Management Property Types Strategy
  • Network

    Recommended Vendors

    Real Estate Agents Mortgage Lenders Companies Hard Money Lenders Contractors Investment Companies

    Search

    Members Events Jobs
  • Tools

    Calculators

    Rental Property Fix and Flip BRRRR Rehab Estimator
    Wholesaling Mortgage Payment 70% Rule Airbnb

    Services

    BPInsights: Property Insights Tenant Screening Property Management Lease Agreement Packages

    New Feature

    BPInsights (beta)

    Quickly analyze a property address or ZIP Code to compare your rent in your neighborhood.

    Analyze a property
  • Find Deals
    Real Estate Listings Find Foreclosures External Link Ads, Jobs, and Other
  • Bookstore

    Real Estate Books

    Profit Like The Pros Bidding to Buy See all books

    Featured Book

    BiggerPockets Wealth Magazine book cover
    BiggerPockets Wealth Magazine

    Written by financial journalists and data scientists, get 60+ pages of newsworthy content, expert-driven advice, and data-backed research written in a clear way to help you navigate your tough investment decisions in an ever-changing financial climate! Subscribe today and get the Oct/Nov issue delivered to your door!

    Get the Magazine
  • Pricing
Log In Sign up
User
Quick search links
Podcast Hard Money Lenders Books Washington
BlogArrowPersonal FinanceArrowChina Scoping U.S. Real Estate
Personal Finance

China Scoping U.S. Real Estate

Harrisonstowe
Expertise:
62 Articles Written
China

While there's been much cross-pacific loan relocation, it looks like the world's largest holder of American loans may be surveying our shores for property acquisitions. According to a new report from Forbes, China is slated to be the largest to spend billions of dollars on American real estate in the next few years. Outpacing both Canada and Australia (which stand as the second and third most popular destinations for Chinese buyers), American real estate overwhelmingly centered on populous and economically thriving metros will likely undergo aggressive acquisition as the PRC seeks greater property holdings overseas.

Want more articles like this?

Create an account today to get BiggerPocket's best blog articles delivered to your inbox

Sign up for free

As I noted in a prior post, the value growth outlook for American property remains consistently positive. As the Forbes disclosure notes, buyers are spread among both wealthy private investors and larger financial holdings, with widespread Chinese interest acting as a pronounced vote of confidence in the stability of the U.S. real estate market. The areas of highest potential interest seem overwhelmingly concentrated throughout Los Angeles, San Francisco, and New York. The Forbes piece highlights that Chinese purchases acquired northward of $10 billion of U.S. property in 2011, accounting for about 9% of foreign buyers that year – outpaced only by Canadians.

While much of this interest is driven by wealthy private buyers, a respectable amount is also motivated by more intrepid investment firms who are looking for foreign assets with the potential to mature greatly in value. Taking the Longview in terms of real estate buys, Chinese firms often see the U.S. as an ideal location for overseas investment. The combination of America’s innately sustainable economy and the temporary crash in property evaluation has served as a magnet for Chinese investors, who expected property to pick up its lost value and sustain a steady growth throughout the ensuing decade.

So What Does This Mean for American Homeowners?

If anything, the widespread consensus among Chinese buyers that America (or at least our most affluent metros) holds stable property investment helps validate predictions that the real estate recovery is sustainable. The focus on populous metropolitan regions also helps quell any apprehension that we could see a boom-bust in property values throughout regions like California and Mid-Atlantic despite any minor upsets. A diversity of purchases beyond more aggressive American hedge funds also helps diversify the number of bodies who hold larger portions of urban property, mitigating the risk that hedge fund orchestration could have on the stability of urban property values.

Ultimately, a rising tide of overseas interest in American property is not a definite validation of market stability, but may still go a long way towards stabilizing value growth outlooks in more volatile metros. China’s focus is strongly directed at property along the West Coast, and assuming buyer activity remains persistent, it could provide consistent demand that serves to even the keel in a region that became notorious as the originator of the disastrous 2008 crash.

Photo: Trey Ratcliff

By Harrisonstowe


Read Less
2 Replies
    Dennis
    Replied over 7 years ago
    If I was a Chinese national, who’s own economy is hitting the skids and while also holding lots of US dollars. Just seen the actions of the Fed and all other central banks in Europe, I might cash in those dollars for a few solid assets that will also provide a return. America will probably be around after the SHTF, not so sure what Europe is going to look like when the Unibank fails. Another great bonus for the Chinese is that our government is becoming similar to theirs. The USD is backed by the full faith and credit of the American people, the Euro is backed by nothing.

    Report Abuse

    Why are you reporting this?

    Additional Comments (optional)

    Cancel
    Karen Rittenhouse
    Replied over 7 years ago
    Harrison: I lived in Seattle then Pasadena from the late 60s until the mid 80s. During those years, it was the Japanese who were buying up the west coast as well as private golf courses across the nation. I wonder if the Chinese are buying up our land from the Japanese? Thanks for your post.

    Report Abuse

    Why are you reporting this?

    Additional Comments (optional)

    Cancel
Rotate Log in or sign up to comment

Related Blog Posts

Personal Finance Jan 05, 2021

Will Americans’ Personal Finances Survive the Pandemic?

By Andrew Syrios

Few have been spared from the wrath of the coronavirus, whether the impact felt was physical, emotional, or otherwise. New data delve into the toll the pandemic is taking on our personal finances.

Read more →

Personal Finance Jan 02, 2021

9 Ways to Save Money You Have Probably Never Tried

By G. Brian Davis

When it comes to saving money, you’ve heard the cliches: no Starbucks, no cable, so on. What else can you do beyond the easy and obvious?

Read more →

Personal Finance Dec 22, 2020

8 Ways to Maximize Your 2020 Tax Benefits as a Real Estate Investor

By G. Brian Davis

By paying more attention to your tax strategy—especially in December—you can slash your tax bill and keep more of your hard-earned money.

Read more →

Personal Finance Dec 16, 2020

How Much Should You Save for Retirement?

By G. Brian Davis

As you start planning your financial endgame—regardless of your current age—consider this your 5-minute crash course in retirement planning.

Read more →
Log in Sign up

Log in

Forgot password?

If you signed up for BiggerPockets via Facebook, you can log in with just one click!

Log in with Facebook

Or
btn_google_dark_normal_ios Created with Sketch. Continue with Google

Let's get started

We just need a few details to get you set up and ready to go!

Use your real name

Use at least 8 characters. Using a phrase of random words (like: paper Dog team blue) is secure and easy to remember.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.

Or
btn_google_dark_normal_ios Created with Sketch. Continue with Google

Why create an account?

Receive a free digital download of The Ultimate Beginner's Guide to Real Estate Investing.

Connect with 1,000,000+ real estate investors!

Find local real estate meetups and events in your area.

Start analyzing real estate properties, we do the math for you.

It's free!

Explore

  • Membership
  • Community
  • Education
  • Marketplace
  • Tools
  • FilePlace
  • REI Resources
  • Perks
  • Glossary
  • Reviews
  • iOS App
  • Android App

Company

  • About Us
  • Press
  • Advertising
  • Careers
  • Stats
  • Contact Us

Important

  • Editorial Guidelines
  • Terms of Use
  • Rules
  • Privacy
  • FAQ

Social

  • Facebook
  • Twitter
  • YouTube
  • Instagram
© 2004-2021 BiggerPockets, LLC. All Rights Reserved.