Fielding Investments Sees Good News from Chinese investment in U.S. Real Estate in 2015

Brian Fielding of Fielding Investments discusses why Chinese investment in real estate in the United States is a promising sign for good things to come.

Brian Fielding of Fielding Investments discusses why Chinese investment in real estate in the United States is a promising sign for good things to come.

As reported in the Wall Street Journal, Chinese investment in U.S. commercial real estate was nearly $6,000,000,000 between January of 2014 through March of 2015, making it likely that the evolving super power may one day soon exceed the traditional foreign investors in the United States like Australia and Canada. Brian Fielding of Fielding Investments reminds that this sort of activity is reminiscent of the 1980s, when Japanese individuals and companies ran up the price of a variety of real estate investments.

     “We believe that while there are some parallels to the historical investment frenzy of the ‘80s, and that this flurry of activity is a sign that the Chinese investment in U.S. commercial real estate is a better indicator of that country’s interest in long-term investment of these assets.”

     He went on to say that while some might be wary of another real estate “bubble,” that unlike their Asian counterparts, the Chinese are not merely seeking out “trophy assets,” which were bid up during that timeframe. Rather, the Chinese began their acquisitions as property prices were beginning their post-recession rebound.

     “We see this activity as a prudent diversification strategy by well-heeled investors who recognize the stability of the U.S. real estate market,” added Brian Fielding.

  Mr. Fielding suggests that the effect of this movement should be comforting to the investment community. He points to the statistics showing that the majority of the Chinese investment has been directed at the two coasts – with over $1B invested in California and $6B in New York since January of 2005. He goes on to suggest that the investment activity is primarily bi-coastal, not necessarily because the fundamentals of the real estate is perceived as being stronger. It is likely that this is due to the greater due diligence challenges in other parts of the country where foreign investors have limited knowledge and the lack of advisors with whom they have relationships to provide sufficient advice on purchasing decisions.

  “We continue to recommend that private investors should use their unique expertise on their nearby communities to make educated purchase decisions,” Brian Fielding of Fielding Investments added. “While the small investor lacks the financial wherewithal to compete for quality assets in larger markets, he should have a wealth of knowledge about local communities, growth areas, highways, regional buying habits, needs and planned gentrification that other investors cannot possibly know nor appreciate.”

    Fielding Investments views feels that the increase in foreign investment will only serve to keep the commercial real estate market very healthy and expect that as foreign investors decide to live and invest in the broader range of American cities. Therefore the value of quality assets, wherever they may be situated, will continue to appreciate.

    Fielding Investments continues to emphasize that the most successful investors are those armed with the most knowledge, something that presents a very special opportunity for those persons who do the most due diligence and keep themselves most acutely aware of developments within their home and neighboring communities. Brian Fielding suggests that investors should attend planning and zoning meetings, track where investment in infrastructure will be made locally and statewide, and invest the time necessary to fully understand the office and retail market.

     “We have seen the greatest success stories realized by those persons who make the effort and take the time to be the ‘best’ within a small area, rather than try to be experts in communities about which they have little firsthand knowledge,” reveals Brian Fielding.

   Due to increased awareness of Fielding Investments and the advice shared by its principal, a new blog has been started where the casual to the expert investor can ask questions. That can be found at http://brianfielding.com.

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