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50 million dollars, the villa, the brokers introduced by friends.Amp; hellip.amp; hellip from Chengdu, Sichuan Province, Ms. Wu not much thought, instant clapper, in Pasadena (Pasadena) city, California, the whole of the United States A set of property was purchased.
in fact, like Ms. Wu, there are more and more Chinese buyers in the US. In the past few years after the subprime crisis, the proportion of Chinese buyers overseas in the US has increased from 9% in 2007 to 14% today. The U.S. Housing Broker Association (NAR) published the 2017 American residential property international transaction survey, which showed that in the year April 2016 to March 2017, Chinese people were once again the number one overseas buyers in the United States, spending 31 billion 700 million dollars a year, of which 65% bought the full payment. The U.S. House Price Index (HPI) forecast of
CoreLogic, a property research agency, shows that house prices will rise by 5.3% in the year from May 2017 to May 2018. CoreLogic chief economist Frank Nosford (Frank Nothaft), in an interview with the daily economic news, reminded Chinese buyers to invest in American property as a vigilance to the volatility of property values.
Chinese buyers buy a purchase of $31 billion 700 million
according to NAR's report, between April 2016 and March 2017, Chinese buyers in the United States bought a total of $31 billion 700 million, more than from Canada, Britain, Mexico. And India buyers, the turnover won four consecutive years champion, hit a new high. Over the same period, Chinese buyers bought 40572 properties, and the number of houses purchased for the three consecutive year ranked first in the US list of overseas housing buyers.
the purchasing power of Chinese buyers is not only reflected in quantity. Aaron Terrazas (Aaron Terrazas), chief economist of the Zillow group, the largest US real estate data platform, said in an interview with the daily economic news reporter that Chinese buyers are more likely to be more expensive in coastal areas than other overseas buyers. Zillow statistics show that 1/3 of Chinese buyers mainly focus on six cities, namely, San Jose, San Francisco, Seattle, Losangeles, Santiago and Boston. The prices of these areas are not cheap, so the median target price for Chinese buyers is very high, reaching $530 thousand in the first quarter of 2017, compared with the median target price of us home buyers of only $258 thousand. Not only that, Chinese buyers also prefer relatively independent detached houses.
Why do more and more Chinese people like to buy American real estate? TRAS said that the reasons for this are different. Employment and children's education are one of the main driving factors for Chinese to buy houses in the US. Judging from Chinese community search records, they tend to be strong in the labour market, especially in areas where skilled personnel are well employed. Besides, the Chinese also like strong community supporting schools. He also pointed out that investment is also one of the main reasons for Chinese buyers to buy houses in the US.
Ms. Wu, who bought houses in the US, is a typical example. She told the daily economic news that she ran a company with her husband, a master at University of Pennsylvania in the United States, a home to buy a house in the United States, and an overseas asset on the other.
Linda Ing, a California property broker in California Champions, an American real estate agent, told the daily economic news reporter that almost one hundred percent of her guests were invested, so they didn't buy the best or the most expensive house, but they chose the highest rate of return on investment. Some guests listen to friends and say that a certain area has a higher rate of return on investment, so they buy property with friends. A recent report by the
26% />26% Chinese buyer for the US loan
even so, it is also very difficult for Chinese buyers to apply to housing loans in the United States, because the US loan screening mechanism is very strict, and most mortgage institutions, including some large banks, think that lending to foreign buyers is too risky.
according to HSBC's website information, foreign buyers apply for mortgages in the United States with the following procedures: Loan pre approval and application, credit verification, credit records, bank statements and income certificates, as well as the completion of property transactions. In addition to complex procedures, the down payment ratio of foreign buyers is relatively high, even more than 40%, and interest rates are higher than local residents.
NAR's report showed that 65% of Chinese buyers who bought houses in the United States from April 2016 to March 2017 chose to buy houses in full and 26% to apply for loans from the United States.
to this, delasas explained to the daily economic news reporter: usually, only banks operating in China and the United States are willing to lend to these buyers, because only they can assess credit risk and income of the lender, and once the borrower is in arrears, they have the ability to return. Collect their assets.
this year, the central bank and the State Administration of foreign exchange have strengthened the management of cross-border RMB business, making the procedures for individual purchase of foreign exchange more stringent. The new "measures for the management of large and suspicious transaction reports on financial institutions", which has been implemented in July 1, 2017, has adjusted the RMB reporting standard for large cash transactions from $200 thousand to $50 thousand. In addition, when applying for the purchase of foreign exchange business, it is necessary to fill in the application form for individual purchase of foreign exchange, so as to provide information for real purpose of purchasing foreign exchange. But CoreLogic, the chief economist, told reporters that it is not yet able to see the impact of the regulation on US housing sales, although Chinese buyers have reduced the target price by about $20 thousand in recent months.
Ing told the daily economic news that almost all of her Chinese buyers used full - money buying, mainly through their own exchange of 50 thousand dollars a year, and the full use of their friends and friends to raise money.
housing prices are high. Buyers need to be alert to risk
as of May this year, US house prices have hit a new high for 6 consecutive months. According to the latest data from CoreLogic, CoreLogic's US housing price index (HPI) has risen by nearly 50% after falling to the bottom in March 2011. Meanwhile, the CoreLogic HPI forecast shows that US housing prices will rise by 5.3% in the year from May 2017 to May 2018.
explains that strong housing demand and limited supply are the main reasons for the rise in housing prices. Economic recovery and falling mortgage rates have stimulated demand growth. In July 2017, the unemployment rate in the United States dropped to 4.3%, which made many families have the ability to buy houses. Not only that, the mortgage interest rate of the US fixed interest rate loan for 30 years is now very low, but the average interest rate in July 2017 is only 3.9%. However, the number of new housing construction is still at a low level, and the amount of property sold for sale has remained at a low level for nearly 30 years.
Vishwanath Tirupattur, head of the Morgan Stanley US fixed income research department, also said that the annual growth rate of US house prices will reach 4% this year by potential buyers (especially millennials), new lows and mortgage application relaxation.
Ing also told the daily economic news that house prices in the United States will continue to rise in the future and will not fall in the last few years, but not much.
but the reporter also noted in the interview that although the US housing market is strong, Chinese buyers also need to be alert to the risks. Take California as an example, according to Ing, the return on investment of California property is 3% to 4%, and in 2010 and 2011, the rate of return on investment is about 12%. Following the rise in house prices in 2014, the price of the house rose last year and the return on investment was low, but the cost and rent of the house did not change, so many guests had begun to turn from buying a house to a selling house.
"the risk of buying property in the United States is the same as investing in other real estate," he said. The CoreLogic us price index reached its highest point in April 2006, falling to the lowest point in March 2011, down by 33%, and many local communities have fallen more than two times more than that.
for non inhabited Chinese buyers who are ready to buy or have been in the United States, he warned that property insurance must be paid in time to pay the property tax on time.
at the same time, in an interview with the daily economic news reporter, trasas also made a few suggestions: buyers should pay attention to the house when they buy a house, and there is a real estate business outside the house price, which is an additional cost to complete the exchange. In addition, buyers should also pay attention to finding a broker who often deals with Chinese buyers and has good reputation. Unlike other countries, in the United States, buyers and sellers have their own brokers. Buyer agents are only responsible for buyers, placing buyers' interests first. Therefore, it is very important to find a trustworthy and ready to communicate broker.