WatchGreat news for clients from China who would like to invest and purchase properties in the US. A lender that I am currently working is able to offer loans for investors from China who do not possess any residency in the States.
Here are the basic outlines:
-Minimum required down payment is 40% to 50%.
-2-year foreign tax return from China can be used as verification, tax return must be in English.
-Borrower will need to have an account with the local branch in China for 2 month so that funds can be verified. (with this particular lender's branch)
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Is this an attempt to let foreign nobodies inflate our bubble?
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I've seen how immigration works at the airport. I just want to see the reaction on the INS guy's face when someone coming from China on a visa says they want to buy a house here. Maybe they'll get deported lol
It will be a Realtor(R) holding a sign outside the Customs and Immigration area with the investors' name, driving them in a limo to view property.
Here's a picture of a Chauffor(R)
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That's great; the Japanese government should be looking at that as one way to stop the multi-decade slide of their real estate market, instead of giving banks the exact opposite "guidance" and refusing mortgages or loans to even long-term residents who have different nationality or don't yet have permanent residency.
(From bitter personal experience: despite living in Japan for over 10 years and having 92% of my purchase price as a down payment, diligently saved into the same bank over 10 years, I was turned away by that branch's manager in the first three minutes when coming in with my real estate agent to talk about borrowing any amount of money at all.)
Good job, HSBC. I imagine they're even more open to Chinese people who actually live in the US.
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Bellingham, WA
Michinaga says
grr, since when is the cost of living going down a bad thing?
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Troy, the cost of living going down is a *great* thing. I'm just looking at it from the government's prespective and trying to find a way for their my wants (the ability to get a mortgage) to align with theirs.
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SF ace says
Foreign sales is a bit of a scam. My wifes relatives live outside the US and during the bubble they used to call asking about housing. They were told by "investors" that all they have to do is give them money to invest into US property and they will be rich. It was a global ponzi scheme that crossed all borders.
I imagine a lot of foreigners got suckered into this raw deal.
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@Troy
>grr, since when is the cost of living going down a bad thing?
Agreed. And Starbucks Coffee went up $0.25 to $0.35 a cup this month (nearly 10%), yet there is "deflation" so interest rates are never raised (or so they say).
Foreigners will likely lose equity on overpriced properties dropping in value.
Better them than me. I wonder if the HBSC loans are recourse?
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San Jose, CA
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SF ace says
I am always amused by these stories of foreigners buying our real estate, because, I know that, historically, foreigners have always bought at the peak of the bubble and liked catching falling knifes, after the bubble burst. Since, foreigners are still buying our real estate, I can sleep well at night, knowing that this market has a lot further to fall.
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Dublin, CA
Cvoc13's website
First fleece the Sue do Intellectuals like IWOG (investors that think it is time to buy) then line up the foreigners to sell to, so they can fleece them as these houses in 10 years are worth 30-50% less then they paid, and all the while they have been paying the property taxes, and insurance.
They will want to sell, and being as they put down 40% they will be just able to keep the bank happy, so the bank finds another way to NOT have to take the loss that is sure to occur.
The poor foreigner investor will go back to china with no USD in hand, and yes their loan will paid, and the house sold/foreclosed/short-sale for virtually exactly the loan balance.
So between the local "investors that sell to one another and turn them into renter homes, each time losing a little until all the investors are all but out of the market due to years longer then any of them thought possible, (IWOG Sorry man your position is the type I see as that person in the deal, nothing personal, and who knows who is correct you might be, and I might be) of losses they throw in the towel THEN IT WILL BE TIME TO BUY.. as a HOME not as an investment, a Home is not a place any of us should look to get returns. If you want to invest money then invest it in a GROWING Market, IE Brazil, China, or some short bond funds, and of course metals for near term, (crowed) OIL and Energy and Health care all INVESTMENTS not homes... in my opinion.