Did you know that the Chinese are infatuated with real estate? In their mind, to be rich is to have real assets. You see, a lot of Chinese fear that one day the government will take all of their wealth as they did in the past which is why they are buying up as much real estate as possible in cities with a high population of Chinese. Chinese investors tend to invest where there is a large concentration of Chinese. In the United States, these cities include San Francisco, New York, and Los Angeles. If you ever been to any one of those cities, just take a stroll to Chinatown and you will notice the size of that area compared to other Chinatown’s you may have gone to. San Francisco has the largest Chinatown outside of Asia. New York comes a close second.
Just take a look at this graph below from PropGoLuxury. The report was generated from millions of online searches by Chinese investors in 2015.
To profit from the Chinese, we must understand what Chinese people from mainland China are like. Please be aware there’s a big difference in Chinese people based on where they’ve grown up, just like how there are big difference with every other ethnicity that spreads the Earth.
1) Speak Mandarin
There is roughly 7.4 Billion people on earth, and of that, roughly 1 Billion of them speak Mandarin compared with 500 million who speak English. Doing business successfully by making a positive connection. Speak Mandarin, and you’ll be able to better connect with wealthy mainland Chinese. Now go out and learn some Mandarin!
2) Understand Chinese Superstitious
The Chinese are very superstitious, and you will never see a Chinese person choose anything with the number 4 in it. So, you Real Estate Agent out there that’s working with a Chinese buyer, just throw away any properties that have the number 4 in them to save yourself some time. You see, the number 4 is pronounced “si”, which in Mandarin sounds like death.
If you have a property will 8888 Main St, you’re golden for a Chinese buyer to overbid on that property. “8” is the best number to have, because 8 is pronounced “ba” which sounds like “fa” or Fortune / Wealth in Mandarin. If you happen to notice that the property you are showing has 8 exterior windows, make sure you point that out to them. They love the number 8!
3) Understand Feng Shui
Feng Shui is a philosophical system of harmonizing everyone with the surrounding environment. It is closely linked to Daoism. The term Feng Shui literally translates as “wind-water” in English. It is a system of laws considered to govern spatial arrangement and orientation in relation to the flow of energy (qi), and whose favorable or unfavorable effects are taken into account when siting and designing buildings.
Feng Shui affects happiness, and who wouldn’t want to be more happy right?
Understanding Feng Shui is very important when dealing with Chinese buyers. One local luxury Realtor here in Las Vegas had almost closed a multi-million dollar Summerlin home when the clients made one request. They wanted to bring a Feng Shui master from China to inspect the house. After the Feng Shui master arrived and spend about an hour assessing the house. The buyer came down the stairs shaking his head. The buyer loved the house, but he came down and said, it’s not Feng Shui and didn’t buy it.
Readers, have you seen a large amount of buying activities from the Chinese? Where Cities? What neighborhoods? What are some other ways to benefit from massive mainland Chinese wealth?