China & Real Estate…. The 411

I recently watched a program on NBC about a current real estate boom. As the program ended, I was stunned. Here’s what was said, “U.S. commercial real estate is the midst of a big foreign investment boom that is likely to continue, according to one prominent expert.
China is leading the boom, but money also is coming from Canada, Norway, the Middle East and elsewhere.”

Well, it is no big news that China and other foreign investors are leading the way. What I am concerned about is how this information was presented on the program. The “boom” and not the “bounce back” started to imply that there was a reason for people to start to panic in the commercial and residential sectors.

“A big inflow of foreign capital might indicate the market was about to hit a top,” is what one contributor to the program said. Well, that’s not good enough. That’s not “kosher” and that statement makes people panic. We’re not at code red yet, and we certainly don’t need to think “bubble” because of foreign investors. While this is possible, it isn’t unavoidable with the right set of circumstances – which is what we ought to be focused on.

China is taking their money outside the USA and there is not a lot of construction happening, which means inventory is going to be unanswered when it comes to mostly commercial real estate and some residential sectors. If we focus on our debt, proper deals, and our overall economic cycle, we can beat the “boom” before it happens.

All this said, should you sell or buy? Yes! We in Walnut Creek have motivated sellers willing to meet our serious buyers at the right price, which means that the temperature of the market is a win-win at the present time. Investors are seeking to scoop up deals, as they did in the past, which means bidding wars (while still happening) are not as prevalent as five years ago. You can still make money on a home or get a great deal on a lot that you want.

Still have questions?
We should talk. Call or email me. I’m always willing to discuss this topic, and others, in-person.