Chinese Investors Shifting Their Strategies In NYC

When real estate agent Geovanna Lim’s client signed a contract for a $3 million condominium development in Midtown Manhattan more than two years ago, the deal was rather easy to get for the Chinese national who agreed on a $300,000 down payment without a mortgage contingency.

During the later part of 2016, the developer was able to obtain a temporary certificate of occupancy and started with closings. However, Lim’s client faced a critical issue with China’s new strict capital controls that took effect last January 1, 2017. In order to control the massive amounts of Chinese investments in foreign countries, the Chinese government required that citizens who will purchase real estate abroad have to sign documents that the property will not be used for investment purposes. Real estate purchases will be allowed for travel or education.

According to Lim, her Chinese client did not have enough time to bring his money out of China and he is scrambling to find a way to move $2.7 million from the Mainland to the US so that he can fully pay for the condominium. Remember that there is an agreement regarding mortgage contingency and nobody predicted that may require financing two years later.

New York real estate is considered as a safe haven by Chinese investors as well as investors from all over world. Less than two months before the Chinese policy, buyers started to move away from trophy pads and luxurious condos. Their attention is focused on value-oriented deals because they have less cash on hand and they need to turn to banks and private lenders.

While Chinese investors still have a lot of buying power, they are becoming more creative when it comes to financing deals. Extremely wealthy buyers were able to get their money out of China even before the new policy and large amounts of investments have already been parked on high-end condos in New York over the past years.

A condo for sale in Hua Hin is an investment opportunity that you should not miss. Hua Hin continues to be developed in a leisurely way so that a visitor can still experience its old charm and unique identity. Since Hua Hin boasts of an affordable lifestyle, it is the perfect setting for your second home.

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