While
the popping of the housing bubble in 2008 was devastating to many Americans, it
presented a golden opportunity to those who had the capitol to purchase the
low-priced real estate. This event could not have happened at a better time for
the People’s Republic of China, who were on a quest to procure the most
valuable resources the world has to offer. While China currently is attempting
to purchase property in major countries around the world, its number one focus
is the United States. Having invested over $1.4 Billion on American property,
mainly in San Francisco, New York and Houston, China’s next largest investment
are is Hong Kong, where China spent $489 Million. While Chinese investors say
the rate of return is not as high as other areas, the American markets provide
stability to their portfolios.
Overall,
this is a smart move for the Middle Kingdom; not only are they investing in
assets that have nowhere else to go but up, but also in the American Dollar,
which continues to be one of the most stable currencies in the global market.
This rings especially true in cities like San Francisco, where the housing
market has raised by 30% this past quarter. Although this arrangement is
beneficial to Chine investors, it is detrimental to those pursuing the American
dream of home ownership. As of this current time though, individuals continue to
rent these properties at these heightened profits, fueling the current
investors profits as well as enticing the desire of future investments from
more Chinese.
- Fung, E. (n.d.). Chinese Property Investors Widen Footprint in U.S. - WSJ.com. The Wall Street Journal - Breaking News, Business, Financial and Economic News, World News & Video - Wall Street Journal - Wsj.com. Retrieved October 19, 2013, from http://online.wsj.com/news/articles/SB10001424052702303983904579094723756080610
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Rapoza, K. (n.d.). Chinese To Spend Billions On American Real Estate - Forbes. Information for the World's Business Leaders - Forbes.com. Retrieved October 19, 2013, from http://www.forbes.com/sites/kenrapoza/2013/07/10/chinese-to-spend-billions-on-american-real-estate/
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