News / USA

US Homes Attractive to Foreign Buyers

US Homes Attractive to Foreign Buyersi
X
December 06, 2013 11:19 PM
The wealthy around the world are always looking for ways to invest their money, and for some people that means buying homes in the United States. While foreign buyers make up just more than six percent of overall home sales in the United States, certain cities are disproportionately affected by foreign buyers, and that includes neighborhoods in southern California, where Elizabeth Lee has this report for VOA.

US Homes Attractive to Foreign Buyers

Elizabeth Lee
The wealthy around the world are always looking for ways to invest their money, and for some people that means buying homes in the United States. While foreign buyers make up just more than six percent of overall home sales in the United States, certain cities are disproportionately affected by foreign buyers, and that includes neighborhoods in southern California.
 
Skeptics may call the belief in feng shui a superstition, but many Chinese consider it an art, and essential for good luck and health in a home. When Chinese native Cathay Wicks searched for a home in the United States, she looked for feng shui elements.

She said she looks for a home that has a lot of light. She said it does not have to be big, but it needs to feel bright.

Wicks is a part of a growing number of people from overseas who are interested in buying homes in major U.S. cities.

Hot pockets

Jed Kolko is chief economist for the real estate site Trulia.com. “There are some parts of the United States that see very strong foreign demand and that helps keep prices high in lots of areas. The places where we see this impact the most is in parts of Los Angeles, Miami and New York,” he said.

The number of buyers from China has been increasing, according to Los Angeles-based real estate expert Angela Wong. In the past year, her clients from China have increased by 30 percent.

She said the first reason her clients buy homes in the United States is so their children can attend school here. The second reason: to immigrate here just like Cathay Wicks, who bought a home in a Los Angeles suburb.

Wicks said the weather in Los Angeles is good, and it also is convenient because there are more Chinese here so it does not feel like a foreign country.

Chinese buyers

More than half of the buyers from China come to California.

In Irvine, California, a new housing development is attracting the attention of potential Chinese buyers with feng shui elements inside the homes and throughout the neighborhood. Developer Emile Haddad came up with the idea. “So we have done feng shui on everything we have. We also have a consultant who looked even at street names when we named the streets. We want to make sure the names of the streets are appropriate in terms of either superstition or in terms of simple pronunciation,” said Haddad.

It is not just people from China, however, who are buying homes in the United States. People from nearly 70 countries are investing their money in U.S. homes. Realtor Shannon Miller said most foreign buyers pay cash, making housing markets such as Los Angeles extremely competitive for domestic buyers who do not have the cash.

“Most of the buyers are trying to buy their homes the traditional way through a loan, and the cash buyers are coming in and they are beating them out. They appeared when the market was full of foreclosure properties. Now their interest is in everything,” said Miller.

One of the neighborhoods that interests foreign buyers is affluent Beverly Hills, where Stan Smith works as a broker. “We have seen different countries go through different economic cycles, and as they prosper they come here. They want to buy a trophy property. They want to put their money in a safe place.”

Another reason for buying a home in the United States: the EB-5 visa. It requires a foreigner to not only invest a certain amount of money in commercial enterprises here, but also have a U.S. home. Economists expect home prices to keep rising, so to make a profit they do not expect foreign investors to sell their homes anytime soon.

You May Like

US Imposes Sanctions on Alleged Honduran Drug Gang

Treasury department alleges Los Valles group is responsible for smuggling tens of thousands of kilograms of cocaine into US each month More

At 91, Marvel Creator Stan Lee Continues to Expand his Universe

Company's chief emeritus hopes to interest new generation of children in superheroes of all shapes and sizes by publishing content across multiple media platforms More

Photogallery New Drug Protects Against Virus in Ebola Family

Study by researchers at University of Texas Medical Branch, Tekmira Pharmaceuticals is first looking at drug's effectiveness after onset of symptoms More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
African Media Tries to Educate Public About Ebolai
X
George Putic
August 20, 2014 8:57 PM
While the Ebola epidemic continues to claim lives in West Africa, information technology specialists, together with radio and TV reporters, are battling misinformation and prejudice about the disease - using social media to educate the public about the deadly virus. VOA’s George Putic has more.
Video

Video African Media Tries to Educate Public About Ebola

While the Ebola epidemic continues to claim lives in West Africa, information technology specialists, together with radio and TV reporters, are battling misinformation and prejudice about the disease - using social media to educate the public about the deadly virus. VOA’s George Putic has more.
Video

Video Ferguson Calls For Justice as Anger, Violence Grips Community

Violence, anger and frustration continue to grip the small St. Louis suburb of Ferguson, Missouri. Protests broke out after a white police officer fatally shot an unarmed black teenager on August 9. The case has sparked outrage around the nation and prompted the White House to send U.S. Attorney Eric Holder to the small community of just over 20,000 people. VOA’s Mary Alice Salinas has more from Ferguson.
Video

Video Beheading Of US Journalist Breeds Outrage

U.S. and British authorities have launched an investigation into an Islamic State video showing the beheading of kidnapped American journalist James Foley by a militant with a British accent. The extremist group, which posted the video on the Internet Tuesday, said the murder was revenge for U.S. airstrikes on militant positions in Iraq - and has threatened to execute another American journalist it is holding. Henry Ridgwell has more from London.
Video

Video Family Robots - The Next Big Thing?

Robots that can help us with daily chores like cooking and cleaning are a long way off, but automatons that serve as family companions may be much closer. Researchers in the United States, France, Japan and other countries are racing to build robots that can entertain and perform some simpler tasks for us. VOA’s George Putic reports.
Video

Video In Ukraine, Fear and Distrust Remain Where Fighting has Stopped

As the Ukrainian military reclaims control of eastern cities from pro-Russian separatists, residents are getting a chance to rebuild their lives. VOA's Gabe Joselow reports from the town of Kramatorsk in Donetsk province, where a sense of fear is still in the air, and distrust of the government in Kyiv still runs deep.
Video

Video Five Patients Given Experimental Ebola Drug Said to Be Improving

The World Health Organization has approved the use of experimental treatments for Ebola patients in West Africa. The Ebola outbreak there is unprecedented, the disease deadly. The number of people who have died from Ebola has surpassed 1,200. VOA's Carol Pearson reports on the ethical considerations of allowing experimental drugs to be used.
Video

Video China Targets Overseas Assets of Corrupt Officials

As China presses forward with its anti-graft effort, authorities are targeting corrupt officials who have sent family members and assets overseas. The efforts have stirred up a debate at home on exactly how many officials take that route and how likely it is they will be caught. Rebecca Valli has this report.
Video

Video Leading The Fight Against Islamic State, Kurds Question Iraqi Future

Western countries including the United States have begun arming the Kurdish Peshmerga forces in northern Iraq to aid their battle against extremist Sunni militants from the Islamic State. But there are concerns that a heavily-armed Kurdistan Regional Government, or KRG, might seek to declare independence and cause the break-up of the Iraqi state. As Henry Ridgwell reports from London, the KRG says it will only seek greater autonomy from Baghdad.
Video

Video In Rural Kenya, Pressure Builds Against Female Circumcision

In some Kenyan communities, female genital mutilation remains a rite of passage. But activists are pushing back, with education for girls and with threats of punishment those who perform the circumcision. Mohammed Yusuf looks at the practice in the rural eastern community of Tharaka-Nithi.

AppleAndroid