After immigrating to the United States, the first issue to address is undoubtedly housing. When investing in U.S. real estate, it is best to first understand the future trends of U.S. housing prices. According to data provided to FindTheBest by real estate data provider CoreLogic, U.S. housing prices are expected to grow by 5.9% over the next 12 months.
According to data provided to FindTheBest by real estate data provider CoreLogic, U.S. housing prices are expected to grow by 5.9% over the next 12 months. If the real estate market continues to appreciate, those who purchased homes at high prices should be able to reach their investment break-even point by 2016.
Data analysis shows: For every indicator, FindTheBest compared the latest data (May 2014), the real estate market trough (February 2009), and its peak (June 2006). Average sales price: 7.5% below the peak.
At the peak before the real estate market crash, the average selling price of a home was $200,000; by the time it bottomed out, the price had fallen by 29% to $140,000. Although the current national average sales price has rebounded to $185,000, it is still 7.5% lower than the peak.
The volume of new home sales in the U.S. is the total number of newly built homes sold each month. This data is an important indicator of whether the construction market is in a healthy state; being 72% below the peak means it will experience a slower recovery period than housing prices. Compared to the lowest point, the number of new home sales has increased by 29%.
Now, various indicators show that the U.S. real estate market is still appreciating. So, how can Chinese citizens invest in U.S. real estate and profit after immigrating to the United States?
1. First, look at the selling prices around the property, such as the transaction prices over the past three months (it is necessary to distinguish between normal sales and bank foreclosures).
2. Bank foreclosure prices are typically about 10-30% lower than normal sales.
3. Housing prices were at their highest in 2005; if the current asking price is at the 2005 level, it is best not to buy.
4. Where is it good to buy a house? Properties in good school districts are generally safer. It is especially important to understand which schools the house you are buying belongs to, otherwise, it will be troublesome for your children's schooling in the future.
5. Currently, in the top school districts in Los Angeles, where many wealthy people live, housing prices generally start at $1 million (starting at 7 million RMB).
6. If it is not a top-tier but is a B-grade or higher school district, the price of a single-family home should start at $600,000 (3.6 million RMB, single-family villa with a garage). Non-single-family homes are also priced above $400,000, or over 2.5 million RMB. Such houses may be townhouses, but they come with a double garage.
7. U.S. houses are basically worth what you pay for them; they generally do not have arbitrary pricing, and there is a market price as a benchmark. There is not much phenomenon of random bargaining; generally, excessive price cutting will simply result in the other party ignoring you.
8. What are cheap U.S. houses like? Commonly known as mobile homes, Americans and U.S. retirees will live in them (some Chinese also buy these houses).
9. Cheap houses include apartments, which are like the high-rise buildings in China. But this depends on the location; good locations (such as those by the sea or high-rise apartments with complete facilities are not cheap either; expensive ones cost over a million dollars, while cheaper ones cost $200,000-$300,000).
