Chinese Parents Are Buying Homes For Their Student Children in the USA
By: investUSA360 •
As the Chinese government continues to fight against ongoing capital outflows, the flow of investor money into the US real estate market shows little sign of slowing down. So far buyers from mainland China, Macau, Taiwan, and Hong Kong have spent a whopping $31.7 billion on US real estate this year alone. This is up from the $27.3 billion spent last year according to the National Association of Realtors.
There are an estimated 40,000 Chinese student in the US enrolled in school and it is commonplace for Chinese parents to invest in buying a home for the children rather than opting for student housing. This is one reason that makes Chinese the top buyers of US real estate with them having purchased 40,572 units this year, up from 2016's number of 29,195.
“Chinese buyers, both Chinese nationals and Chinese Americans, are aggressively entering the local property market,” said Angela Li, a broker at property agency Douglas Elliman and a co-founder of NYstudents.net, a site offering a range of services including housing and which is part of Tumeibian, a New York-based online education and housing service platform. Li also noted that many of the buyers are parents from top mainland cities such as Beijing, Shanghai and Guangzhou.
“If they invest wisely, through rents and appreciation parents can turn over a profit of between US$30,000 and US$40,000 with a property in cities such as New York and Boston over a span of four years, which is large enough to cover their child’s tuition,” she said. The most popular choices for the parents is usually a studio or 1 bed unit in NYC priced between $600K to $1 million for the studios and $1 to 2 milion for the 1 bed units.
investment, real estate, study in the US, Chinese investment