This weeks Real Deal has an article about the default of a Chinese developer in NYC. The headline reeks of doom and gloom ala 2008, however, if you read the entire article, it seems that China’s investments in the US are quite solvent.
Apparently, residential property values in China have slipped 6% over the past year, and the strength of the dollar has hurt the yuan’s buying power.
As someone that’s seen and brokered through several market crashes, I can tell you that in between the rare crashes, there’s always going to be doom and gloom headlines that could give you a twinge in the pit of your stomach if you’re in the middle of , or about to make a real estate purchase/investment.
My credo is that as long as you are buying the property as a long term investment you will never get hurt. You may lose some paper equity in the short term during a downturn, but history has proven time and time again, that real estate, especially in the very small, internationally desired NYC market place, comes back and establishes new highs.
So invest with confidence, and don’t get scared off by the chicken littles.