The 21st century finds America sharing the influence of the world economy with China, which has emerged to become one of the most industrious and profitable countries in the world. Because of its accelerated development and lower cost of production, it has now replaced America as the country people go to when they want a factory to build something. Even America itself has taken advantage of this, with iconic American pieces of technology such as Apple devices and Microsoft’s Xbox One game console being manufactured in China.
Because of this, China shares some of the responsibility in directing the course of finances the world over, and that was no clearer than in recent years, as China’s insatiable demand for raw goods declined—along with their own economy. That decline led to avalanche of other responses, including a dramatic crash in the stock market of over 1000 points in August.
While this had a negative effect on some aspects of the world market, for American real estate, it provided an unusual opportunity.
Property, especially in cities like Los Angeles with long term, desirable, luxury homes and real estate, has always been one of the safest investments in the world. When you invest in the right property, your investment appreciates and isn’t subject to the tidal changes that can unpredictably hit corporations and the stocks tied into them. A product recall can profoundly damage a consumer goods company, but a Santa Monica luxury home will always retain its value.
This is why in a situation such as China’s uncertain economic future, that very uncertainty results in China’s own investors looking for safer places to put their money. Like most sensible people, they see the safety and security in real estate, especially that which isn’t in China itself, and thus less likely to be influenced by financial activities there. The response of Chinese foreign investment in America, especially in property in areas like Bel Air, Brentwood and Santa Monica is the same reflex that the affluent in any country have to make sure their wealth is protected from negative market forces.
For people that own these kinds of desirable properties, it has become a seller’s market and SuzanneDranow.com has the experience to guide both buyers and sellers through this dynamic period in the market. Change is coming and it is an exciting time with many opportunities for those with the vision to seize it.