A.D. Cantelmo Property Management
Our Business is Property Management in Orange County California
Foreign investment in USA Real Estate, Good or Bad?
There is always a
debate about foreign investment in the USA Real Estate market; some say it’s a
good thing, because it increases the value of property. Others say that is not
good, for one, it sells out the US to other Countries and second, it artificially
drives up prices and that makes it harder for American citizens to buy
property.
Both arguments have a
valid point.
When Real Estate is in a difficult market, foreign investment can
help stabilize the falling prices and keep the economy from falling further in
a recession. On the other hand it can be problematic when foreign governments
through segregates, own large portions of USA Real Estate. The ladder though is
not going to change. Foreign buyers love to buy the US whether it is Real
Estate or Treasuries, due to the fact that the US economy although it has it’s
up and downs most of the time will be profitable in the long run and there is
no law stopping foreign investors from investing in the US. Japan a couple of
decades ago, was buying up large portions of the US and lost a ton of money, so
there are no guarantees.
On the second
point, the problem of foreign investment driving up the prices artificially is
very true and this does hurt the average buyer from taking advantage of a down
market.
There is no easy answer to the question of
whether foreign investment is a good thing. China is the country now that is
buying more and more Real Estate, the big news today was how much of the Big
Apple they own.
To some this is not a good thing, but only time will tell how
it affects the citizens of the USA. I know in my business of Property Management
in Anaheim Ca. I have had dealings with a few Realtor who deal mainly with
foreign investors and they live the fact that they make lots of money.
With the world opening up more and more and
counties like China and Russia that have a growing upper class that wants to
invest in the US, we need to be prepared for more foreign investors to
buy up more and more Real Estate in the USA.
A.D. Cantelmo Property Management Specializes in Property
Management in Orange County Ca.