Foreign investors are piling into this US real estate play as a coronavirus safe haven
Foreign investors pile into the U.S. real estate game as a safe haven for the Corona virus
Now it's scientific - find a cure for Corona! - Real Estate Investments in the United States - All Details
Posted March 5, 2020 10:06 AM EST
Diana Oleike
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In recent weeks, Rupstock, a site for selling properties for rent, has seen Asian investor traffic on its site jump by 500%. CEO Gary Beasley said this was a direct result of the coronavirus.
"I think it could be that people are looking to invest capital in what might be perceived as more stable areas that are less affected, at least not yet, by the virus," Basley said.
Roppstock noted a 450% jump in website traffic from German investors, a 250% increase in traffic from Australia and a 100% increase in the UK.
A sign for rent advertising a row house in northeastern Capitol Hill, displayed Monday, August 26, 2019, in Washington DC.
Investors are looking for the calm in the turmoil of the virus, and it appears that U.S. residential real estate is, and especially, homes for rent.
However, these investors don't come to the US to tour the homes themselves. They buy them online.
Rupstock, a 5-year-old fintech company from California, lists single-family rental homes for sale on its site, most with tenants already in place. It also offers management services, so the investor never has to visit the property. In recent weeks, it has seen Asian investor traffic on its site jump 500%. CEO Gary Beasley said this was a direct result of the coronavirus.
"I think it could be that people are looking to invest capital in what might be perceived as more stable areas that are less affected, at least not yet, by the virus," Baisley said. "I think people are looking at hard assets, things like real estate, which are generally uncorrelated with the stock market, and particularly U.S. housing, which tend to do relatively relatively well in times of market volatility."
And it's not just buyers from Asia. Rupstock noted a 450% jump in traffic to its site from investors in Germany, a 250% increase in traffic from Australia and a 100% increase from the UK.
Rupstock's unique platform, designed for people who want to invest online, shows how technology can reshape investor patterns in times of crisis.
"There used to be people who didn't want to travel, but if they can't travel, the ability to invest from afar is a great thing. You can put your money into work without jumping on a plane," Beasley added.
The U.S. housing market has already been in the midst of a severe shortage of homes for sale, and this increased demand is only intensifying competition. Beasley said he expects to see some current investors decide to list their homes for sale now, to take advantage of this new demand and the high home prices that are sure to follow. With.
Foreign investors are piling into this US real estate play as a coronavirus safe haven
Investors are looking for the calm in the Coronavirus storm, and US residential real estate appears to be doing so - specifically single-family rental homes.
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