Say Hi To Your New Neighbors!
Real Estate Is Going Crazy! But WHO exactly are the buyers?!
It goes with saying. The market is on fire right now! Across the Real Estate board, whether it is housing, or vacant land for sale, sales are coursing through, like alcohol thinned blood on a 10 mile run.
The incredible thing about it, however, is that this phenomena is not simply contained to a single municipality, region, city, state, or even country. Quite the opposite is the truth. From the West Coast of the United States, to the East Coast of Ireland, properties are flying off the market, like Twinkies in a Nuclear apocalypse!
A local production In the UK, called “The Guardian” notes that Caroline Purdey, a market and data analyst for the UK’s Department Of Community and Local Governments reports, “An improvement in sentiment and activity continues to show in the UK housing and mortgage markets, with a more positive picture also starting to emerge in the economy. Our forward estimate of gross mortgage lending in July reinforces a growing evidence base of a strengthening in the housing and mortgage markets.” (c.)
The Independent, an Irish advocacy production states that, “…60 and 100 people turn up for a viewing when a property goes on sale,” whereas in a formerly depressed housing market, it might take weeks before a single shimmer of interest broke through the darkness. (c.)
This speaks volumes about the financial times ahead, but one question remains that many haven’t considered. WHO exactly is buying up all of this inventory? Local families waiting for their big break? Big Steam Brokerages securing investments before the next pinnacle? Wrong!
It turns out that the Chinese have taken an interest in the purchase of land and housing in other countries. Kenneth Rapoza, a contributor to Forbes Magazine online writes ” The sheer volume of Chinese domestic property transactions, at roughly $600 billion in the first six months of this year, demonstrate the buying power of the Chinese consumer,’ says Andrew Taylor, CEO of Juwai.com, a real estate news and information website based in Shanghai. Real estate is a favorite investment, along with education, for Chinese families.” (c.)
So why the big push for the foreign land grab? Are Chinese families simply sick and tired of where they are? Far from it! It turns out that in order to stem the tide of the new Real Estate boom, the Chinese Government has artificially stemmed sales by imposing harsh restrictions on home buyers by increasing the minimum for down payments, and taxes. This has sent Chinese home buyers looking elsewhere for their new home purchases.
The same publication shows some pretty startling statistics, for example.. Australia, ” has witnessed 840% growth in Chinese buyers over the last three years, and the U.K. has experienced over 500% growth,” and according to a Chinese study, it looks like the U.S. is next! According to Juwai, “The U.S. has it all; it has a large and diverse property market, a trusted legal system that enables non-citizens to own property and the charisma born of decades of Hollywood movies.”
Say what you will about land for sale, acreage for sale, ranches and farms for sale, or the Real Estate Market as a whole; but were it me… at this rate, I’d put my money in Rosetta Stone!