I just read a great blog post written by Alain Pinel, the Senior Vice President, General Manager of Intero Prestigio International titled “Figuring Out Chinese Buyer’s”. I know there are hundreds of news articles talking about this topic, but I learned a few facts from this blog post that I have not read previously.
Below is a recap of what I thought to be noteworthy ideas from the blog:
- Last year in California alone, more than 50% of homes sold to foreign buyers went to Chinese nationals.
- There are over 3,000,000 US$ Millionaires in China and 650 US$ Billionaires.
- The source of funds to buy homes in America varies. Some come from business ventures, real estate investments or stock market gambles (before 2015) and some come from business or political payoffs.
- ***Chinese buyers theorettically can only get $50,000/year out of the country, but many manage to collect enough from family members, friends, associates, employees, etc. Also, many are able to circumvent the restrictions through intermediaries, such as foreign companies doing business in China, domestic companies engaged in foreign trade, Hong Kong entities, underground money exchanges and offshore bank accounts.
- The Chinese tend to hold properties as long term investments. They buy and rarely sell.
- Many Chinese buyers are reluctant to share financial info, so to qualify them to buy a home real estate agents need to know their background and holdings, not necessarily their bank statements. (Pinel)
For the full blog post, click on the link: http://us1.campaign-archive1.com
Pinel, Alain. “Figuring Out Chinese Buyer’s” Web blog post. The Reserve. Intero Real Estate Services, 14 Oct. 2015. Web. 14 Oct. 2015.