A New Profit Center It is no secret that China is the second largest economy in the world, but what many in South Florida are finding out is that they […]
US Treasury department has been busy since launching its newest anti-money laundering campaign. This time, the press has been on shutting down illegal funds entering the country from foreign investors. […]
A New Profit Center
It is no secret that China is the second largest economy in the world, but what many in South Florida are finding out is that they are using their resources to purchase property in the area. For many years realtors have been dreaming of tapping into this almost endless resource. Finally, it seems to be becoming a reality.
Recently, large real estate brokerage firms have put together large groups of high-end Chinese investors to tour the South Florida real estate market. Whether it is the unique architecture or the tropical climate, these investors were showing tremendous interest and sales followed.
The Miami-Dade Chamber of Commerce launched an Asia task force with the sole purpose of shrinking the distance between China and Miami-Dade. The success of this initiative rests heavily on going overseas and putting together these “tours” to stir up demand.
China purchased more real estate in the US than any other country between April 2015 and March 2016. Unfortunately, Miami-Dade only saw 2% of its business coming from China. Although, 2016 has seen Chinese investors spending hold steady.
Many look to the expansion of the Panama Canal and increased shipping to the South Florida ports as a reason the demand has been firm. At the same time, there have been some increase investments in local businesses and commercial real estate being financed from China. Coincidence? Maybe not.
Either way, the South Florida marketplace is hoping the trend continues and the flow of the lucrative Chinese real estate buyers climbs higher each year.
US Treasury department has been busy since launching its newest anti-money laundering campaign. This time, the press has been on shutting down illegal funds entering the country from foreign investors. These investors, usually purchasing property in excess to 2 million, come from countries such as China and those in the Middle East.
The process is simple. These individuals run money through foreign companies who open accounts in the Caymans with the said funds and then purchase property here in the states. The crackdown started in New York and Miami but has quickly expanded to Los Angeles.
This new campaign puts a new responsibility on more than just the title attorney. Those who need to pay attention are the real estate agents, bankers and the attorneys involved in any of the transactions dealings. They are responsible for knowing where the buyer’s funds originated. This is an often overlooked task, but one in which they will be held more accountable. Potential criminal charges are at stake if found to be a part of the money laundering scheme.
No one knows for sure what the long-term impact of this new Department campaign will be, but in the short-term, the high-end market has softened. There has also been a slowdown in the influx of foreign real estate investors. This might just be the results of Brexit or the fact that countries have been trying to curtail the outflow of money on their end.
Although it might be too early to tell, one thing is for sure, the US Treasury Department is coming down harder than ever on money laundering, and all members of the seller’s team must be part of the solution.
The Chinese Buyer
UncategorizedA New Profit Center It is no secret that China is the second largest economy in the world, but what many in South Florida are finding out is that they […]
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NewsUS Treasury department has been busy since launching its newest anti-money laundering campaign. This time, the press has been on shutting down illegal funds entering the country from foreign investors. […]