Government paper gives China tips on buying U.S. property

China tips on buying U.S. property

Chasing for a possessions bargain? Worried those prices in China are too high? Have you consideration about the United States instead? Let me help.It sounds like a real estate agent's pitch. But Chinese real estate investor curious about America needed to look no further on Friday than the office of Commerce's own newspaper.The global Business Daily in print a series of reports over two pages on whether it's the right time to buy U.S. property and offering tips on which cities to explore.

"Five years ago, Chinese Americans came to China to buy homes; but now the situation has been reversed," the newspaper said.

The U.S. state relationship of Realtors said China was the fourth-biggest source of global home buyers in the United States, following Canada, Mexico and Britain, in the year ending March 31.

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In China, fear of a real estate bubble

BEIJING -- With property prices soaring in key cities, many investors and bankers worry that China has the next great real estate bubble waiting to be popped.

The Chinese government is worried, too. On Sunday, the nation's cabinet, citing "excessively rising house prices" in some cities, said it will monitor capital flows to "stop overseas speculative funds from jeopardizing China's property market." It also said that any Chinese family buying a second home must make a down payment of at least 40 percent.

For investors, many of the usual bubble warning signs are flashing. Fueled by low interest rates, prices in Shanghai and Beijing doubled in less than four years, then doubled again. Most Chinese home buyers expect that today's high prices will climb even higher tomorrow, so they are stretching to pay prices at the edge of their means or beyond. Brokers say it is common for buyers to falsely inflate income statements for bank loans.