| ears, touring for bargain real estate in the U.S. has | | | | growing. According to Yin, "Chinese people like to |
| become the latest vacation craze for wealthy | | | | keep private about whether they've brought |
| chinese investors.While Americans may be | | | | property and how much they've paid for it." |
| hesitant to test the home ownership waters, our | | | | Some clients, however, have mentioned that it is |
| Chinese visitors are jumping in, attracted by great | | | | still not time to buy and that they expect prices |
| prices and the wide selection of properties. | | | | to be dropping even further. |
| In fact, according to the Oriental Horizon program, | | | | Luo Jie, organizer from China Swan International |
| 7.5 percent of U.S. residential property that was | | | | Tours, displayed a brochure written in Mandarin |
| sold to foreign markets was purchased by | | | | outlining listings of foreclosed properties in major |
| customers in China, Taiwan or Hong Kong. We | | | | cities such as Los Angeles, San Francisco, Las |
| know they can afford it — as of 2008, the | | | | Vegas, Boston and New York. He has a group |
| Boston consulting Group reported China was | | | | venturing out on a tour in the next few weeks. |
| home to almost 300,000 millionaires — a | | | | Some customers are anxious to buy, others are |
| 20% increase from 2007, and the world's fifth | | | | just window shopping and surveying their options. |
| largest number. | | | | Luo also mentioned the challenges that Chinese |
| Reminiscent of outlet mall bus tours, SouFun | | | | investors run up against when making out of |
| Holdings is organizing house hunting tours for | | | | country purchases. The yuan, is not easily |
| Chinese investors scoping out U.S. bargain | | | | converted in most markets and can be |
| basement prices for real estate. The company | | | | exchanged only under certain circumstances such |
| has organized ten tours this year and has over | | | | as trade and tourism. |
| 500 people interested in such an adventure. The | | | | Howard Rosen, a senior manager at Grubb & |
| well organized tours make the whole real estate | | | | Ellis in New York, believes it's not easy to |
| experience much more manageable as potential | | | | purchase U.S. properties without already having |
| investors don't have the typical language barriers | | | | assets here. Those with investments in Hong |
| to overcome. Also standing by are broker agents, | | | | Kong may qualify, but many whose assets are |
| representatives from law firms and insurance | | | | restricted to China may have a harder time. |
| companies. | | | | Real estate in some of the major U.S. cities is |
| Yin Guohua, a partner in a Chinese law firm raved | | | | beginning to look extremely attractive against |
| about the attractive real estate prices and the | | | | comparable properties in Beijing, Shanghai or |
| many opportunities available. Some shoppers are | | | | Guangzhou. Dollar for dollar, you get more square |
| looking for accommodations for their children | | | | footage for a lessor price. Even a $400,000 or |
| attending school in the states. It's not certain how | | | | $500,000 property is superior to what can be |
| many people on the tours actually walk away | | | | found in the Chinese mainland. |
| with a new property, but the interest is definitely | | | | |