Media have been fascinated by Chinese investors touring American real estate to buy, but the impacts might just not be as big as huge as expected, warn Rupert Hoogewerf , the expert on wealthy Chinese, in Business Week. While US real estate might offer genuine bargains, legal restriction will stop most of the rich Chinese to actually invest in it.
Hoogewerf estimates China is home to more than 50,000 people with a net worth of over US$10 million, and more than 800,000 with a net worth of US$1 million. But Chinese law restricts individuals from taking more than US$50,000 out of the country in one year.
According to Hoogewerf, the restrictions mean buyers are predominantly traders, or those with businesses that export overseas. These people have stockpiles of US dollars and the savvy to navigate real estate overseas.