FOREIGN INVESTORS PULLBACK

WSJ: FOREIGN BUYERS OF HOMES DROP

Given the trade tension, not shocking investments in our housing market is decreasing. In many real estate markets, investments come from overseas investors seeking profits by flipping property.

In many large markets, real estate investments come from overseas from buyers who may never take residence in the property. Investments from Russian and Chinese moguls yield great returns for those flipping properties in quick moving markets. This helps revitalize areas and encourage investments in other ventures. In the face of trade tensions, a safer bet for investors might be to keep money at home until trade deals are finalized.

A problem occurring with the influx of real estate investments was displacement of residents no longer able to afford housing in the fast changing markets. While the only guarantee in life is change, there should be some consideration on how these communities are altered to allow for fair transitions. With the funds on the sidelines, residents need to identify whether their community is prime for revitalization and potentially position themselves to take advantage of the potential economic activity.

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