Ep. 23: China’s economy and the U.S. housing market

How will China’s economy affect the U.S. housing market?

Is there a way to invest in real estate that isn’t so time consuming?

Get answers to these questions by listening to this week’s episode of the Ilyce Glink Show. You can click the audio link below to listen to the full show, or download the podcast via iTunes.

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This week on the Ilyce Glink Show, I talk with Sam Van Horebeek. He’s the director of the Hong Kong-based East-West Property Advisors, which matches Chinese real estate investors looking to purchase property in the United States with American Realtors. The economic volatility in China has already led to a massive outflow of Chinese capital seeking more stable investment opportunities, and portions of the U.S. housing sector are seeing a mini-boom as a result.

After I get Sam’s take on the economic situation in China, I’ll share some tips on investing in a real estate investment trust, or REIT for short. These are real-estate based investments that generally offer a lot more liquidity than an individual real estate purchase, and they don’t take as much work on the part of investors. Then I’ve got a segment for U.S. real estate investors considering a home purchase in Mexico. Mexico has a lot to offer anyone seeking an expatriate lifestyle, but there are a few things to keep in mind before signing a contract.

More About This Show

Glinkonomics Report [1:00]

How China’s Crash Will Stoke the U.S. Housing Market [9:30]
With China’s economy slowing and its stock market tanking, Chinese capital is fleeing the country – and a good chunk of it is heading for the U.S. real estate market.

Chinese investors are searching for a safe place for their money, and the U.S. is already seeing an influx, particularly in the housing sector. Chinese investment in U.S. real estate has increased tremendously over the last 15 years, rising from just $50 million in 2000 to almost $30 billion in the last year. With the Chinese economy on such shaky ground, that number appears poised to increase considerably in the near future.

In this segment, I chat with Sam Van Horebeek, director of East-West Property Advisors, which connects Chinese real estate investors with U.S. Realtors. From his perch in Hong Kong, Sam has a particularly useful vantage point on these trends.

Is a REIT Right for You? [20:58]
Real estate investment trusts are a nice way of investing in real estate without taking on all the responsibility of an individual property owner. But is a REIT right for you?

Investing in real estate is an important element of any well-balanced investment portfolio. But unlike investing in stocks and bonds, real estate investing takes constant management and attention. That’s where REITs offer a major advantage. REITs are passive investments that are bought and sold like stocks, but they’re property-based. A REIT is simply a collection of properties or mortgages tied to real estate, and a share of a REIT offers an investor a way of buying into that collection. So the investor reaps the same benefits of owning property while letting the REIT entity take care of all the management responsibilities.

Four Things to Expect if You’re Buying a Home in Mexico [23:20]
If you’re looking to buy real estate abroad, and you love warm weather, then you may want to consider buying a home in Mexico.

Our neighbor to the south is home to around 1 million U.S. expatriates. From Mexico City to Puerto Vallarta, Mexico offers a variety of lifestyles and locales. While the beach is one of Mexico’s most obvious draws, there are a number of other reasons to consider buying a home there. But there are also a few concerns to keep in mind when you buy real estate in any foreign country, and Mexico is no exception. For many Americans, adjusting expectations to fit the pace and quality of life in Mexico can be a challenge.

If you have any questions about this show or in general, email me at questions@thinkglink.com.

Click the audio link below to listen to the full Ilyce Glink Show.

Thanks for listening!


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About Ilyce Glink

Author of 13 books, including the bestselling 100 Questions Every First-Time Home Buyer Should Ask. Writer of the nationally syndicated column, “Real Estate Matters.” Top-rated radio host in Atlanta. Writer for CBS MoneyWatch.com. Managing editor of the Equifax Personal Finance Blog.
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