One of the largest U.S. Real Estate Company is not afraid of China’s most stringent foreign exchange ban. Chinese government launched the most stringent foreign exchange ban this year [1.It is not allowed to exchange foreign currency for real estate investment in abroad. 2.People will have to fill out a form that describes the purpose of their foreign currency purchase. 3.China’s capital controls on this rule are stricter.] It makes Chinese investors, who want to buy U.S. properties, jittery. Although there was a loophole, that buyer may use friends’ and families’ $5000 foreign currency purchasing quota, it doesn’t exist anymore.
Amanda, who works with one of the largest U.S. Real Estate Company, doesn’t worry about it.
"This is not a new rule, and it has been in place for several years. Compared to other parts of the U.S., there will be less impact in New York real estate market. New York has a more stable real estate market than other part of the U.S.. Moreover, we have a large amount of long-term investors reside and with whom we have been doing business for several years. Those investors have assets in U.S. already. They will continue buying and selling properties in the U.S. without difficulty."
Amanda said, most her buyers are first time buyers, who are young professionals.
“Usually, buyers only pay a down payment first, which is usually twenty percent of sales price. It is achievable for buyers to save enough to pay a down payment of an appropriate property. [Buyers may not need to borrow money from families or friends with foreign exchange.] Most of my buyers, who work in New York City, can support themselves and save for their first home. This rule doesn’t affect my buyers."