Investors are looking for peace in a storm with coronaviruses and seem to have found residential properties in the US - specifically family homes for rent.
However, these investors do not come to the US to inspect the houses themselves. They buy them online.
Roofstock, a 5-year-old Finnish company based in California, offers family homes for rent on its website, most of which are already in place. It also offers management services so the investor never has to visit the property. In recent weeks, Asian investors have seen an increase of up to 500% on their site. CEO Gary Beasley said it was a direct coronavirus result.
Beasley commented: "I think there may be people who want to invest capital in what can be perceived as more stable areas on which the virus has no such effect, at least not yet," ... "I think people are watching tangible assets, such as real estate, which are not generally related to the stock market, and in particular the US housing market, which have performed relatively well during the period of market volatility. "
And they're not just Asian buyers. Roofstock reported a 450% increase in visitors from investors from Germany, a 250% increase in visitors from Australia and a 100% increase in the UK.
Designed for people who wanted to invest online, Roofstock's unique platform shows how technology can change investor patterns in times of crisis.
Beasley added: “There was a problem in the past, as they were people who did not want to travel, but the current ability to invest is problematic because of travel. You can put your money to work without having to get on the plane. ”
The US housing market has already been in the midst of a serious shortage of homes for sale, and this increased demand only increases competition. Beasley expects some current investors to decide to bring their homes for sale right now to take advantage of this new demand and higher house prices, which should rise as demand increases.