How the Chinese Middle-Class Will Impact the US Real Estate Market
The booming middle class in China is disruptive on a global scale, everything from consumer spending behavior to International real estate investing will be impacted. China’s growing middle class is larger than any other Country by far and is only getting larger. With 480 million in China considered to be middle class, it’s three times larger than the middle class in the US, and that gap is getting bigger. According to firm McKinsey & Company 76% of China’s urban population will be considered middle class by 2022, which means China’s middle class will reach 780 million people.
While this rising class aims to travel the world on their next holiday, they don’t only go to see popular tourist sites, they also have an eye for potential real estate opportunities. Interesting research shows that that 77% of Chinese have intentions to buy real estate when they travel abroad, and 26% say that their ideal investment destination is in the US. When you look deeper into those numbers it reveals that 28% buy for investment purposes, 24% for their own use, and 17% for emigration according to the 2018 Chinese Global Travel Survey by Juwai.
Purchasing real estate abroad is very difficult and will often take at least 6–12 months for a transaction to be completed, and if you make that far you could still walk away empty handed. It’s a difficult process that will leave many frustrated and discouraged due to not being able to find the right investment property, high cost of purchase, difficult transferring funds across border, Immigration laws and visa issues, financing, prohibitive U.S tax laws, exchange rates, and loss of home country benefits to name a few.
Blockchain technology bypasses these major challenges and creates a smooth streamlined process through tokenization. By tokenizing real estate assets, you can offer fractional real estate through blockchain technology making it much more affordable. It doesn’t matter what your income or social status is, you could be a single parent, college student, recent college grad, or starting your 1st career, if you have roughly $1,000 in ETH value you can have the opportunity to invest in fractional real estate abroad and enjoy the benefits of income producing properties as well as capital appreciation. And with global access investors can truly diversify their portfolio based on geography, country, region, and economy. It opens up access to the US real estate market which has been in an upward swing since 1963.
RealtyReturns is a cross-border marketplace that is helping people around the globe access real estate and accumulate wealth. Real estate has always been a bountiful investment with rich returns through income generation and capital appreciation; and for the first-time people from all walks of life can have access to real estate.
RealtyReturns is democratizing real estate investing by offering cross-border real estate transactions through their online portal. Regular people can invest in real estate through their ERC-20 compliant security tokens. The integration of the blockchain into the traditional real estate investing model provides asset-back tokens and liquidity to investors all across the globe. Each token represents legal ownership in fractional real estate with access to income generating properties and capital appreciation.
VP, Investor Relations
Experienced Sales Leader of over 14 years and has started offices in London, Toronto, and the US. He was VP of Investor Relations of RealtyMogul where was responsible for revenue growth, sales operations, and growth initiatives. Under his leadership, he developed a sales playbook that resulted in 2x growth.