Real estate bargain hunts

It’s not difficult to see why so many people are confused when it comes to the real estate market. There are conflicting reports everywhere about the economic impact, if the market is recovering or still dropping and when things are likely to return to where they were.

  

We have to acknowledge that the market has suffered, that much is undeniable, but whilst this causes difficulty for some, others are actually prospering, so to make sweeping statements is virtually impossible. An interesting benefactor of the GFC’s impact on real estate is the travel industry out of China, namely travel to the USA which has picked up in the first few months of 2009. Interestingly there are some indications that the reason for this increase in travel is the U.S. housing market.

  

Real estate is a top priority for many wealthy Chinese investors, and there are a quite a number of them. Reportedly more than 50,000 individuals in China have a net worth over $10 million and the number of people with a net worth over $1 million is more than 800,000. Currently these wealthy investors tie up around 21% of their assets in real estate holdings where the global average is approximately 14%. So it makes sense that switched on property buyers are heading to where the bargains abound, and currently everyone knows that’s in the United States.

  

Amongst these elite of Chinese society, specialised housing tours are beginning to prove popular. One of China’s largest real estate companies, Soufun Holdings, ran a USA bound trip at the end of February for 40 of the country’s wealthier buyers. Starting in Boston then traveling to San Francisco, Los Angeles and New York, the trip cost the equivalent of roughly $4,800 and allowed the group to view homes in the US $500,000 to $1 million range. The trip was so popular that the company had to turn away 400 applicants.

  Thankfully the impact of the economy on the Australian real estate market has been nowhere near profound enough to warrant fly in bargain hunters, but there are still great purchase opportunities for people who are in the market currently. If you’re looking to buy or sell or have questions about real estate, drop in and see your local CENTURY 21 agent – your local real estate expert.  
Posted by Charles Tarbey on 11/05/2009 at 8:41 AM | Categories:

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