A group of bargain-hunters from Beijing are hoping to make inroads into the American real estate market next month, as America's ailing economy leaves US home owners scrambling for buyers.
More than 30 people in Beijing are reported to have signed up with a group tour to seek housing bargains in the U.S.. Some are real estate dealers, but others are parents who want to buy a house for their children when they go study in America.
For contrarian investors foreclosed houses that go for between US$40,000 to US$100,000 seem a perfect buying opportunity.
Miss Yang, the organizer of the group, said she expected only a couple of them to actually close a deal, and that most just wanted to get a first hand picture of the US real estate market.
"They will only buy if the price is very attractive," she added.
The price per person is 14,900 yuan (US$2,166), cheaper than a normal trip to the U.S., and the 10-day trip, scheduled to leave on January 15, 2009, will visit San Francisco, Los Angeles and Las Vegas.
Some nay-saying analysts warned that the risks of buying in the midst of a global recession were huge.
"Investors should be very cautious, because the worst isn't over yet," said Niu Dao, a well-known real estate analyst. "Most houses in the U.S. are owner-occupied, so investors had better not expect high returns from their investment. And don't forget the U.S. has high property taxes."
(China.org.cn by He Shan, December 3, 2008)
