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Chinese investors betting on Detroit comeback
kissgoodnight
Member Posts: 4,064 ✭✭✭
Chinese investors betting on Detroit comeback, buy up real estate
interest in the market.
"I have people calling and saying, `I'm serious -- I wanna buy 100, 200 properties,'" Chen said. She added that a colleague had recently sold 30 properties to a single Chinese buyer.
Chinese housing is among the most expensive in the world. Capital controls also make investing big sums in overseas stocks or property a challenge.
Buyers seem to be purchasing purely as investment, and don't plan on moving to Detroit anytime soon. Though Chinese realtors had planned tours of the city in late spring, many were canceled when investors didn't receive visas, according to Chen.
Since there are no plans to live in the homes, shopping remotely from China is not a problem. "They say, `We don't need to see them [the properties], just pick the good ones,'" Chen said.
This may be only the beginning of a buying trend. Wei Kefei, an organizer of a Beijing property fair, told state-run Global Times that Chinese were investing now and expecting Detroit's economy to come back, helped by the city's auto industry. "Some people did rush to buy houses in Detroit, betting on the U.S. economic recovery, which they believe will boost development in the auto industry," Wei told Quartz.
The buying craze was so significant that China's Ministry of Foreign Affairs warned citizens about the risks of investing, and the many hidden costs that buyers take on when they purchase U.S. real estate.
Chen doesn't seem as convinced as the Chinese of the Motor City's recovery. She compared the chances of the city's housing market turning a profit to winning the lottery. "Thirty-five years ago downtown Detroit was like this and it's not getting better."
Read more: http://www.foxnews.com/us/2013/07/29/chinese-investors-betting-on-detroit-comeback-buy-up-real-estate/?intcmp=obnetwork#ixzz2aZ3dD1tx
interest in the market.
"I have people calling and saying, `I'm serious -- I wanna buy 100, 200 properties,'" Chen said. She added that a colleague had recently sold 30 properties to a single Chinese buyer.
Chinese housing is among the most expensive in the world. Capital controls also make investing big sums in overseas stocks or property a challenge.
Buyers seem to be purchasing purely as investment, and don't plan on moving to Detroit anytime soon. Though Chinese realtors had planned tours of the city in late spring, many were canceled when investors didn't receive visas, according to Chen.
Since there are no plans to live in the homes, shopping remotely from China is not a problem. "They say, `We don't need to see them [the properties], just pick the good ones,'" Chen said.
This may be only the beginning of a buying trend. Wei Kefei, an organizer of a Beijing property fair, told state-run Global Times that Chinese were investing now and expecting Detroit's economy to come back, helped by the city's auto industry. "Some people did rush to buy houses in Detroit, betting on the U.S. economic recovery, which they believe will boost development in the auto industry," Wei told Quartz.
The buying craze was so significant that China's Ministry of Foreign Affairs warned citizens about the risks of investing, and the many hidden costs that buyers take on when they purchase U.S. real estate.
Chen doesn't seem as convinced as the Chinese of the Motor City's recovery. She compared the chances of the city's housing market turning a profit to winning the lottery. "Thirty-five years ago downtown Detroit was like this and it's not getting better."
Read more: http://www.foxnews.com/us/2013/07/29/chinese-investors-betting-on-detroit-comeback-buy-up-real-estate/?intcmp=obnetwork#ixzz2aZ3dD1tx
Comments
property there is a great deal if you have time on your side. There is no way it will stay that way forever,..so when it gets burned/bulldozed/etc and the land is cleared, you could be sitting on some great property money,..especially if it is zoned commercial.
But I'm all out of yuan (yen)...
"Never do wrong to make a friend----or to keep one".....Robert E. Lee