Chinese buying up California housing

“We are seeing a lot of Asians who are buying as an investment, but their kids are going to school here, so kids live in the home. They are looking at it more as an investment in education,” said Emile Haddad, CEO of Fivepoint Communities, developer of the Great Park Neighborhood.

That is Brian Yang’s plan. Speaking from his home in China, Yang said he purchased a home in Irvine this year, but he will wait five years, until his daughter turns 10, before moving his family to the U.S. He has several reasons for taking the leap.

“Education in America is very good and world class, so the first one is for education, and I think the second one is for the property appreciation,” explained Yang.

(Read more: China has the youngest billionaires)

While American secondary schools and universities are a big draw for the majority of Chinese buyers in California, Yang, and many of his colleagues, are also concerned about China’s political instability, inflation, even pollution. They are paying all-cash for real estate in California, using it as a safe-haven for their wealth. Yang was reluctant to talk about the money, but he admitted, “I feel the same way to some extent.”

For now, Yang is renting out the four-bedroom home, and, he said, getting a 5 percent return on the investment.

Article source: http://www.cnbc.com/id/101225345

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