How Chinese Make Money From Real Estate?
The answer is "saving"! According to data from the Organisation for Economic Cooperation and Development (OECD), the percentage of income that goes to savings is 6% in the US vs 38% in China
How can you make money from real estate? Start saving! Without saving, you will not have money to invest to break into the real estate market. No matter how much you borrow, you still must have enough money saved for a down payment.
Being physically in the United States means that you can put as little as 20% down and get a very low interest rate from the bank when buying rental houses to invest in. More than 70% of Chinese investors pay 100% cash to buy the investment property or have to put 50% down and pay high interest rates.
So that means that for the same amount of money that a Chinese investor is paying 100% in cash to buy 1 house, the American can buy 5 houses with a mortgage with a lower interest rate! In the end, Americans will benefit from the return on the investment if they sell the house in the future and the tax deduction from rental income!
Please contact me because I want you to be rich like Chinese!