Skip to main content

Visa Deal to Enable Increased Chinese Homeownership in U.S.

Nov 18, 2014

The influence of Chinese investment in U.S. residential real estate could witness a dramatic expansion thanks to a little-publicized change in U.S. visa issuance rules.

Under a visa deal signed last week during President Obama’s visit to the APEC conference in Beijing, student and exchange visas for Chinese nationals coming across the Pacific were extended from one year to five years, while short-term business and tourist visas were extended from one year to 10 years.

Simon Henry, CEO of Juwai, a Shanghai-based company that facilitates Chinese inquiries into global real estate opportunities, predicted that the change in the visa rules would encourage Chinese purchases of U.S. housing.

“The second biggest driver for Chinese investing in the U.S. is for property that the children can live in while studying in the U.S.,” said Henry in an interview with Forbes. “We forecast a rapid increase in the number of not just Chinese university students studying in the U.S., but also secondary and even primary school students. The new visa program will help propel this trend, which is already under way. One outcome will be increasing real estate investment by the parents involved.”

Henry added that his company is now receiving twice as many inquiries about student visas than for business and tourist visas. He predicted that more Chinese executives will seek to educate their children in the U.S. and to relocate to this country in order to be closer to their children.

According to data released in July by the National Association of Realtors (NAR), China is the largest source of foreign real estate transactions in the U.S., based on a dollar basis. But don’t expect the Chinese to be engaged in flipping or other speculative activities. In a posting on the Juwai Web site, Stephen Ivanusa, director of Belle Property International (Australia), noted that Chinese property purchasing is aimed at long-haul holdings for future generations and not get-rich-quick schemes.

“The Chinese strategy is not about having a five percent return,” he said. “It’s about securing something for their family with a long-term outlook.”

About the author
Nov 18, 2014
Broker Action Coalition Unveils Inaugural Board Of Directors

Newly formed nonprofit organization BAC announces industry professionals to guide its mission of legislative change and educational initiatives in the mortgage industry.

Feb 21, 2024
GSEs Report Strong Earnings

Robust performance marks growth for both Fannie Mae and Freddie Mac, despite a dip in home purchases.

Feb 15, 2024
Friendly Competition Joins Forces

The merger aims to enhance local fulfillment and sales support, marking Guild’s sixth acquisition since 2021 and expanding its licensed originators to over 2,100 amidst a challenging market.

Feb 14, 2024
Guild Mortgage Announces Acquisition Of Competitor Academy Mortgage, Bolsters National Presence

The strategic move will see Guild Mortgage enhance its market share and become the 8th largest non-bank retail lender in the U.S., welcoming over 600 loan officers from Academy.

Feb 13, 2024
Proprietary Capital-Led Group Acquires Multichannel Lender AFR

Colorado-based fund manager Proprietary Capital finalizes acquisition of American Financial Resources.

Feb 13, 2024
Are Trigger Leads Harmful? Prove it

Trade associations claim trigger leads are dangerous to consumers.

Feb 08, 2024