Asian investors are beginning to take advantage of the struggling housing market in the United States by buying homes that have been foreclosed on and purchasing short sales below the price it would cost to build comparable new construction.
NPR recently reported on Kevin Chu, an investor from Hong Kong, who works for an investment firm that owns property in Las Vegas. Chu recently visited Las Vegas to inspect the houses that his firm has invested in.
The firm Chu works for, The Creations Group, recently bought distressed homes across the United States, which included 13 houses at fire sale prices in Las Vegas, according to NPR.
The firm invested in the homes as a result of the Las Vegas foreclosure rate being more than three times the national average, leading to more than 1,000 homes sitting empty, owned by banks, the source stated. One of the first homes Chu visited sold at the height of the market for more than $200,000, and the firm bought the home for $55,000.
"In some places the types of prices that we are getting, I think it's you know, once in a generation, perhaps once in a lifetime kind of opportunity," Chu's boss Danny Lim said to NPR.
The average value of a home in Las Vegas is $106,700, according to Zillow, which might make relocation cost
more affordable for those, like these Asian investors, looking to take advantage of a down market.