As the year comes to a close and the interest rate bumped, foreigners still can’t get enough of that good ole homegrown American real estate, PricewaterhouseCoopers partner Mitch Roschelle (pictured, center) says.
Shaky currencies, stocks and bonds push foreign investors to the relative safety of hard assets like US property, Roschelle tells Yahoo.
“Whenever there's instability in a society or in the world," Roschelle says of investors, “They rotate to real estate as opposed to the trading asset.”
China’s rocky summer, weak currency and housing glut catapulted yet another wave of capital flight to American shores.
In fact, Chinese investors just passed Canadians as the number one foreign buyers of US real estate, on the year--Canadians are still ahead over the five year numbers. (A trend that should continue with the recent EB-5 extension.)
Even with a strong dollar, international investors believe US assets can put up returns that far outperforms inflation. “The yield that those investors are looking for is really a long-term yield,” Roschelle adds. [Yahoo]
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