Double guarantees
As a senior overseas property investor, Chen Yuyun tells quite a different story about house shopping.
A general manager for a Shanghai logistics company, Chen had both money and American connections in hand. Due to the skyrocketing prices and new policies restraining house purchases in China, Chen lost interest in the domestic property market and transferred his focus overseas.
Chen Yuyun is sharp and savvy about the overseas property sector. He argued, "Chinese used to immigrate to Vancouver. But now housing price growth in Vancouver has exceeded 60 percent, the tide of Chinese immigration is turning to the U.S."
Chen's observations are that Los Angeles, San Francisco, New York and Boston are the favorite choices of Chinese now. The west coast of the U.S. was always a magnet for Chinese settlement, and of the two east coast cities, one is the country's economic hub and the other home to the world's top universities.
Chen chose San Francisco for its delightful weather. In March, he took three days to house hunt and eventually bought a serviced condominium for U.S. $1.2 million. Chen estimated the annual rate of return on his investment would amount to no more than five percent, but he was satisfied.
"This investment ensures me the choice to proceed or step back freely. If I immigrate to the U.S. some day, I can sell this apartment and buy a single family dwelling. According to U.S. regulations, no tax is due if you sell one property and buy another one within the year." explains Chen, adding the rest of his rationale: "Even if I never leave China, I still have the apartment. It's not a bad investment."
Aimed at Chinese pockets
An expo centered on Australian luxury apartments with sea views was held in Shanghai at the Four Seasons Hotel on December 3. "The rate of return on investment is about eight to twelve percent," was how the Australians enticed visitors to consider the benefits of buying homes in their country, and they pointed out some unfavorable aspects of other locations, such as, "Unlike America, Australia doesn't collect a legacy tax. You can pass on 100 percent of your home's value to the next generation."
Singapore realtors promote something different when they are targeting the Chinese. Over seventy-percent of Singaporean is Chinese and it is easy for new Chinese to integrate into this society.
Each foreign property sector has its selling point but they all have one thing in common: they target Chinese eager to immigrate or invest.
