Los Angeles Real Estate Investor Barrington Malcolm continues to see the trend of Chinese buyers flooding cash into the L.A. market as China’s economy slows, seeking stable investment opportunities in Southern California’s real estate. Market Realist, confirms this in an article which states, “Buyers from China invested about $12 billion in US real estate in 2015 and in the first quarter of 2016 have already reached nearly half of the total 2015 volume.” Many are purchasing multi-million dollar private estates and investment properties in affluent neighborhoods like iconic Hollywood and Beverly Hills. Developers are also purchasing apartment complexes, commercial buildings in downtown Los Angeles and acquiring luxury hotels in beautiful coastal beach cities.A recent article in the L.A. Times mentioned Anbang, a Chinese Insurance company and current owner of New York’s Waldorf Astoria, purchased a number of luxury hotels for $6.5 billion from Blackstone Group, a private American investment firm. The prime assets are Loews Santa Monica Hotel, Montage Laguna Beach, Ritz Carlton Laguna Niguel and a few others. Financially, these purchases are fueling the West Coast commercial and single-family home real estate market. The billions invested in the L.A. market is great for economic growth and development however, for some there’s a different picture.
Angelenos seeking to purchase homes in the coveted north and west side must contend with the influx of wealthy cash buyers, creating a greater demand for houses during a time when the supply is already low. Malcolm further notes, he has seen many changes over the last 25 years, but his ability to find deals and flip homes is something he’s been very successful with, even during the 2007 economic fray. To his credit, identifying these trends of the overall real estate market, prompted him to invest in the south L.A. area over 20 years ago and it is still paying off substantially.
L.A. residents that prefer areas North of Wilshire Blvd., but depend on bank loans, are unable to compete with wealthy cash buyers desiring the same area. This cash buying shift has caused prospective local buyers to search on the more affordable south side and fortunately, many are finding pleasant surprises.They’re discovering beautiful hillside homes with spectacular views, in neighborhoods lined with palm trees, in areas where legendary greats Ray Charles, Tina Turner, Nancy Wilson and others once resided.
These southern communities are geographic gems, located close to private universities, like the University of Southern California (USC) Loyola Marymount and only about 20 minutes from downtown Los Angeles, LAX and beaches. While no one can predict the outcome of the ever changing landscape of Los Angeles real estate, one thing is certain, if property can be purchased anywhere in the city, it couldn’t be a better time to buy.