All Forum Posts by: James Warren

Just wondering what you guys have got to say on this.

Most crowdfunding platforms are still in the US and only allow accredited investors. However there are exceptions popping up slowly, such as as the real estate crowdfunding platform called Groundfloor

So what do you guys think will happen if globally non-accredited investors will be allowed to invest in private real estate through crowdfunding? 

I like @Robert Crawford's answer. In addition you might want to look at your foreign investors in the area. 

One has to actually put in the effort and start to free up some time in order to hangout in the places where foreign investors, who are often luxury buyers tend to be in. It also depends on what group of foreign buyers you are aiming at. Those who have been in the country for a few years already and are aiming to purchase their second home etc will be in very different areas and attending totally different events than those who come as tourists which could transfer to potential buyers in the future.

What about stepping in your buyers shoes and see what you would do to find property. 

You can start off by searching Google for: Looking for a multifamily 3 bedroom 1 bath in area xx  etc... and see who wrote that post. 

Or think about where you can advertise your property. Where would you be looking if you were the buyer?

In the end its simply matching your buyers needs with what you are able to provide. The closer the match the higher the probability in closing the d

hello @Antoine Stanley,

I totally agree with you that having a list of buyers ready to purchase property will save you a lot of time and make the whole transaction process move much smoother. In the end its all about knowing what the buyer is looking for and matching it up with what you are able to provide. The closer the match, the closer the probability for closing deals. 

Here are some of China’s best property listing websites which are currently being used by millions of home buyers ever single day even though you probably never heard of them. 

By far the largest listing website in China can be found at www.fang.com boasts up to 10 million visits per day. They currently operate in 310 cities in China with branches in 80 locations across the country. Currently they have been making efforts to expand their services to foreign realtors overseas. 

E-House Group has successfully targeted domestic as well as international developers to join their network. Their e-commerce platform at www.eju.com links secondary brokerage services with their primary agency.

Currently many individual Chinese investors are using a site called www.juwai.com in order to look for overseas property. The company was started by 2 Australians and is becoming a increasingly known in mainland China. 

Let me know if you think some other websites should have been mentioned 

 The major hubs in the US which attract Chinese investors are still San Francisco, Seattle, New York. Educated investors are purchasing real estate in Texas due to the higher yields. However, one needs to take into account that Chinese real estate buyers are not only purchasing for higher yields, here are some factors to take into consideration when attracting Chinese home-buyers. Actually it's pretty interesting to see that even properties in Detroit are being snatched up by Chinese investors, simply because they are so cheap in comparison to real estate in their home country. (an average 2 bedroom apartment in Beijing or Shanghai is about 500 to 700k USD). This can go up much further depending on the area. 

• To secure a place to live for their children studying when they study overseas
• Prime or luxury property to park their money in
• (and yes, ) Investment property, simply because the rental yields are a lot higher overseas than they are at home.  Rental yields in 1st tier cities such as Shanghai or Beijing are terrible (2 to 3%)

Hello there @Michael Amory, 

I also joined the forums not too long ago but I have already learned a lot here. There's a wealth of information at your fingertips. 

James

Chinese investing in Germany

According to China’s Commerce Ministry, Chinese direct investment into Germany amounted to USD 210 million in Q1, which is a year on year increase of 246 percent. Chinese have mostly been interested in offices, hotels, apartments and mixed developments. One reason why Chinese investors are becoming increasingly more interested to invest in Germany is due to the increased affordability of real estate projects and homes due to the depreciation of the Euro. Other reasons are because of the high quality of education available in the country and the high yield both commercial and residential properties have to offer. The real estate markets in Germany are also rising, resulting in additional capital appreciation for investors as well. Germany also offers stability due to its strict legal standards.

Chinese investing in Japan

Chinese investing in Japanese real estate are mainly attracted by a 22 year low yen and potential capital appreciation which will result from the 2020 Tokyo Olympic games like it previously has for the Beijing Olympics in 2008. Currently most individual investors from China purchase properties in Japan which are in the range of USD 160’000 to 320’000. Unlike Hong Kong or Singapore where available properties are limited, there are plenty of investment properties available in Japan.

Chinese investing in Dubai

Over the past 2 years Chinese have invested USD 353 million into Dubai's property markets. The Dubai real estate markets are both affordable and provide high yields for Chinese investors, even after the recent devaluation of the Yuan towards the US dollar. Cities such asBeijing, Shanghai, Guangzhou and Shenzhen are three times more expensive than Dubai. So far there are around 4200 Chinese companies that operate in Dubai and nearly 10 percent of it's residents are Chinese. 

Welcome @Mark Shaffar,

I am impressed on how you were able to buy and then sell your condo in Beijing for double the price in just 2 years. Congratulations on that from me. 

Anyways, I do believe you made the right choice because there is not as much capital appreciation to be found in Beijing residential properties as there used to be a couple of years ago. 

Hello there Gianmarco, 

Hope you got used to the life in Shanghai, I know that it will take some time for you to adjust. Well, if you are looking to get into real estate in China I would start selling overseas property to Chinese investors. As mentioned above, yields in China are really low and the markets are overpriced. 

Anyways good luck and wish you much success.