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International super-rich target California real estate

And so they come.  Nothing new we didn’t already know but some interesting analysis by Reuters.

As uncertainty stifles global financial markets, real estate with strong rental prospects in key cities across the United States is again becoming an asset of choice for the yield-hungry international investor.

I do take issue with their unsupported statement

As the U.S. jobs market expands, there are signs that the worst may be over for the property market that spawned the sub-prime mortgage maelstrom and the world’s deepest banking crisis since the Great Depression.

even the mass media has been reporting about all the revisions to the unemployment rate and job creation numbers & how companies large and small are hesitant to add new jobs until they see more positive signs in the economy.  A pretty glib generalization that really doesn’t belong in the story.

You can read the entire story here.

While Chinese investment is no surprise I didn’t realize Canadians had more money flowing into US Real Estate.  Very interesting.  One key to note for Real Estate Investors, namely wholesalers/rehabbers/flippers looking for those bargain REO’s is the statement

 “From an investment standpoint, the view is even more positive: people are searching for returns which aren’t available with other investments, and real estate yields are now looking very attractive, given recent price adjustments.”

They are looking at different criteria when evaluating an investment property so don’t be surprised when all the REO’s are being bid up so high.  It’s a combination of the banks trickling out the inventory or opting for Short Sales to save some of the cost/time of foreclosure and the large investment funds just looking at yields that fit their investment goals.


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