Rental Market and Dollar Collapse

[Chris B.]

Hi everyone I'm curious to everyone's opinion of the United States economy/dollar and its relation and effect to the rental market if the federal reserve don't raise rates and eventually collapse the dollar.

For those that currently have rental investments, I'm curious to your thoughts and plans for such events, and what do you think will happen to mortgage loans if money is still financed, and renters?

As for me personally any investment having to do with the dollar is a risk because I believe an eventual collapse is imenent so I mostly focus and buy and flip and allocate a certain percentage into gold. At the same time I am somewhat confused to why chinese investors are buying up property throughout the untied states?

How do you guys feel?

[Sam Van Horebeek]

@Chris B.

Many Chinese buyers are investing in the US for the following main reasons:

- Immigration

- Education (every year 300,000 students from China are arriving in the US for studies)

- Diversification/investments

Each of the reasons above has been increasing significantly in numbers every year and we expect that this trend will continue. We are talking to a few dozens of Chinese buyers every day here in China and you probably would be surprised about their desire to buy a house in the US. California (as a state) is well known - so even for those Chinese citizens who have never been to the US, they continue to flock to the same areas.  

Having said that, the interest of Chinese investors who are looking for returns is increasing as well. And they are looking at other places outside of the typical West Coast and East Coast areas. We have quite a bit of traction now with investors in cities such Austin, Houston, Chicago, Memphis, Orlando, Miami, Philadelphia, Detroit and a few others. Those cities are typically not considered by these overseas Chinese buyers as places to immigrate to but surely they are looking for ROI there (rental yield or gentrification of certain areas resulting in decent appreciation). Hope this helps