Canadian Investors in Northern VA Why, What and Where

Canadian Investors in Northern Virginia – Why, What and Where

living room

It’s no secret that Canadian investors in real estate have been making inroads into the US property scene for a long time. In fact, until just a few years ago, Canada was the single largest foreign real estate investor in America. While Chinese investors recently outperformed Canadian investors, you’ll find our northern neighbors are still avidly buying up properties across the country. And while states like Ohio, Utah and Michigan are very popular, many choose to buy in northern Virginia.

Why Virginia?

Many areas have undeniable appeal to real estate investors from abroad. Utah is rich in resorts, and buying properties around these areas gives investors a decent reward on their investment. Ohio has a very stable population, and cities like Columbus have increasing demands in the area of rental housing, making them smart choices. Even Detroit, Michigan is easy to understand – investors love the rock-bottom pricing. Why do so many choose northern Virginia, though? It’s all about location. Northern Virginia properties give investors something impossible to find anywhere else – proximity to the nation’s capital, combined with relatively low real estate prices and a stable real estate market.

Kentucky Horse Farm

Where in Virginia?

The “where” of things is a bit harder to nail down. Chinese investors tend to buy properties in highly urbanized areas near high-tech firms, or else within cultural enclaves in the state. Canadians share a very similar culture with Americans, and aren’t restricted by language barriers. Additionally, many are choosing to move away from highly urbanized areas for their investing because of high competition from other international investors. Where are they turning? More and more are putting their money into properties in smaller regional hubs that connect small town America, rather than big cities. So, you’re more likely to see Canadian real estate investors active in places like Charlottesville than Arlington.

Brambleton Condo2

What Are They Buying?

This one is even more difficult to nail down than the “where” – Canadian real estate investors are interested in a very wide range of different properties. Those with enough capital tend to focus on high-end properties with proximity to major hubs and the corridors of power in D.C., while others focus on smaller multiunit properties away from those major hubs. Single-family properties are popular as well, and provide a significant return on an initial investment. More and more Canadians are considering multifamily housing as a good investment as well. Apartment buildings, condos and the like are easily marketable and in high demand, particularly as northern Virginia’s population continues to climb with the recent influx of new employers and international residents to the area.

Key Features for Canadian Investors

Canadian Real Estate Wealth is a leading magazine dedicated to real estate investors in Canada, and it offers valuable insight into the minds of these investors, particularly what makes an appealing property. In an article published in December 2014, Ken Davidson recommends basing an investment decision on factors like high accessibility, public infrastructure redevelopment, employment trends, population growth and price.

Canadian real estate investors find that northern Virginia meets all of these criteria, providing a sound investment option.

Source:

http://www.canadianrealestatemagazine.ca/strategy/10-tips-to-find-the-best-locations-for-real-estate-investment-186483.aspx

Canadian Investors in Northern VA Why, What and Where

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Virginia Real Estate a Hot Commodity for Chinese Investors

Virginia Real Estate a Hot Commodity for Chinese Investors

Chinese investors are buying up properties throughout the US at an unprecedented rate. In addition, the speed at which they’re putting their money into American properties is accelerating almost exponentially. In fact, China is the number one buyer of American real estate, followed closely by Canada and Australia, and while they’re investing across the nation, properties in Virginia are among the most popular. Why is this? What’s behind the drive toward investing in Virginia properties as opposed to land in the Carolinas, Georgia, or north in New England? Actually, there are a number of reasons for this.

key bridge in georgetown

Why Virginia?

Really, it’s easy to understand why Chinese investors are snapping up properties in and around Virginia. It’s really all down to that age-old real estate mantra, “location, location, location”. Virginia is uniquely situated with almost anything an investor might want, from a solid infrastructure with main interstates and highways, proximity to the Atlantic Ocean, easy access to states north, south and west, and more. However, the state’s proximity to Washington D.C. is probably an even stronger attraction. Just a short drive away are the nation’s corridors of power. That’s good news for pretty much any investor, particularly those looking for a good return over time.

Washington DC Capitol , USA

Real Estate in Northern Virginia a Diversity of Uses

So, what are Chinese investors actually doing with the billions of dollars’ worth of real estate they’re buying in the US? To what ends do they put those Virginia properties? Chinese investors have the same needs as any other real estate investor, with a couple of differences.

Living In: Chinese investors are heavily involved in the Virginia housing industry and for good reason. While China’s economy might have officially surpassed America’s, that doesn’t mean the country is a great place to live. Those with the means are getting out, and they need somewhere to go. A posh country home in Virginia is a great option, but they’re actually happier with a location in an urban area. Multifamily properties are highly sought after by Asian investors for both income needs as well as for relocation purposes.

Return on Investment: One of the most common reasons for anyone to invest in real estate is to make a return on that purchase at some point. Chinese investors are savvy, and because the majority of purchases are made by groups ranging from insurance companies to wealth funds to ultra-wealthy families, many of these buyers are looking to put in their capital, let the investment mature, and then sell for a profit later on.

Trophies: Most of the properties purchased by Chinese investors will never actually see the owners in person. They’re “trophy properties”, or “postcard properties” according to sources ranging from Forbes to CNN Money. In fact, in a story for West Virginia Public Broadcasting, Dan Fasulo says these are, “The pretty pictures they can show around back home and everyone will know what they’re looking at.”

homes-1

Virginia Real Estate a Hot Commodity for Chinese Investors

As China’s economy continues to grow, American property owners can expect to see more and more investments from Chinese individuals, families and groups for these purposes and more.

Source:

http://wvpublic.org/post/asian-investors-find-hot-market-us-properties

http://realestate.aol.com/blog/2013/07/08/chinese-homebuyers-flood-us-housing-market/

http://finance.yahoo.com/news/official-america-now-no-2-150936444.html

http://www.forbes.com/sites/kenrapoza/2013/07/10/chinese-to-spend-billions-on-american-real-estate/

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