The next major wave of foreign investors buying US real estate appears to be coming from China. A recent AP article brought to light the fact that wealthy Chinese homebuyers have poured into the U.S., spending $22 billion on property in the states, tops among all foreign purchasers over the 12 months preceding a March study from the National Association of Realtors. That was up from $12.8 billion the previous year, when Chinese buyers also took the No. 1 spot.
According to a 2012 Hawaii Business Magazine article, Hawaii Realtor Patricia Choi (ranked as the #1 Broker on Oahu by the magazine for 4 years) believes there is so much potential in the China market and she’s focusing more and more attention on China. She stated in the article; “I’ll be leaving on a flight to China next week”. And “This is my third year in a row that I’m going to China.”
Will some Chinese bought 2nd home investments become “illegal” vacation rentals? It’s appears to be likely. Many of the neighbors who live near illegal Kailua vacation rentals deem the majority of illegal businesses are owned by out-of-state speculators who often claim they are unaware of the zoning ordinances that regulate vacation rentals on Oahu.
AP Article:
Hawaii Business Magazine Article:
http://www.hawaiibusiness.com/hawaiis-new-foreign-real-estate-buyers/