Chinese investors are buying new homes in California as home builders there rush to keep up with the demand, according to a new CNBC report.
Real estate investors have started to see this trend in other parts of the country, such as in Atlanta, where home builders are building new homes for rentals for investors. While the new home building helps U.S. home builders, the new cash for purchases in California is coming from the Chinese.
“They see the market here still has room for appreciation,” said Irvine-area real estate agent Kinney Yong, of RE/MAX Premier Realty, told CNBC. “What’s driving them over here is that they have this cash, and they want to park it somewhere or invest somewhere.”
They may be buying now as an investment for rental, with plans to use the investment at some point in the future for their children.
“We are seeing a lot of Asians who are buying as an investment, but their kids are going to school here, so kids live in the home. They are looking at it more as an investment in education,” said Emile Haddad, CEO of Fivepoint Communities, developer of the Great Park Neighborhood.
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