Hello and welcome to the real estate minute. I’m your host Ivan Estrada with Ivan Estrada properties at Douglas Elliman. In this episode we’re discussing foreign wealth in Los Angeles. We often hear that Los Angeles is a melting pot and it’s a very sought-after place for foreign buyers to purchase property. Where are they coming from? And where is the wealth coming from? Recently three of the top places that investors are coming from are Singapore, Emirates and Australia. So the real estate minute is going to work like this. There are three segments, one minute each, three minutes total. The real estate minute begin.
Singapore officially the Republic of Singapore is a sovereign city-state an island country in Southeast Asia. In recent years investors from Singapore have been buying property in Los Angeles due to our amazing location. But where’s the money coming from? The Singaporean economy is considered one of the freest, most innovative, most competitive and most business-friendly economies in the world. Singapore has the world’s highest percentage of millionaires with one out of every six households having at least 1 million US Dollars in disposable wealth. The reason for all its wealth? Location. If you want to trade between East Asia and India, Africa, Europe or the Middle East you have to go right past Singapore which has an ideal harbor for shipping boats, shelter from the ocean, and deep enough that they can pull in. In summary Singapore owes its immense wealth to its prime location.
Personal wealth held in investable assets in the UAE is forecasted to grow by 7% per year to reach five hundred ninety billion by 2022. Driven by an uptick in equities and investable funds following steady growth since 2016. Where’s the wealth coming from? UAE’s economy remains extremely reliant on oil with the exception of Dubai most of UAE’s dependent on oil revenues. In Dubai tourism is also one of the biggest sources of revenue with some of the most luxurious hotels in the world. In fact, there has been a massive construction boom and expanding manufacturing base and a thriving services sector, which is helping the UAE diversify its economy. With all this wealth in the UAE, it makes sense that the investors have chosen to buy in Los Angeles to diversify their portfolios.
The opportunity to create personal wealth through ownership of property in the USA has never been better for Australian real estate investors. Australians like purchasing property in the US because the cultures are closely related. Where’s the wealth coming from? Australia is the 14th largest national economy by nominal GDP, 20th largest by triple P adjusted GDP and was a 25th largest goods exporter and 20th largest goods importer. One of the biggest industries is mining. Mineral extraction in Australia was valued at two hundred and twelve billion Australian dollars. Another place that has built wealth for Australians is finance. Australia’s big four banks are among the world’s 50 safest banks. And where are all these Aussies buying? The top three American cities where Australians looked for property was Beverly Hills, Calabasas, and Malibu.
Thank you so much for watching this episode of the real estate minute. I’m your host Ivan Estrada with Ivan Estrada properties at Douglas Elliman. I will see you next time and don’t forget to follow me on Facebook, Instagram, YouTube and Twitter at Ivan Estrada properties.
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