🇺🇸 🇨🇳
12%
Of Foreign Purchases
$1.1M
Avg Purchase Price
#1
Chinese Buyers
13.3%
State Income Tax

California Regional Markets

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California offers diverse investment opportunities from Silicon Valley tech hubs to Los Angeles luxury markets.

San Francisco Bay Area

Tech hub dominated by Chinese buyers and H-1B visa holders. Strong appreciation, high entry points.

  • SF condos: $800K-$2M+
  • Palo Alto: $3M-$10M+
  • Cupertino: $2M-$5M
  • Fremont: More affordable
Median Price $1,400,000
Top Foreign Buyers China (45%+)

Los Angeles County

Entertainment industry, luxury lifestyle. Chinese, Korean, and Middle Eastern buyers active.

  • Beverly Hills: $3M-$50M+
  • West LA: $1.5M-$5M
  • Koreatown: $600K-$1.5M
  • San Gabriel Valley: Chinese hub
Median Price $950,000
Top Buyers China, Korea, UK

San Diego County

Biotech hub, military presence. More affordable than LA with growing tech sector.

  • La Jolla: $2M-$10M+
  • Downtown: $500K-$1M
  • Carmel Valley: $1M-$2M
  • Chula Vista: Entry-level
Median Price $850,000
Top Buyers China, Mexico, UK

Orange County

Suburban luxury between LA and San Diego. Strong schools attract family buyers.

  • Newport Beach: $2M-$15M+
  • Irvine: $800K-$2M
  • Huntington: $1M-$3M
  • Anaheim: $600K-$1M
Median Price $1,100,000
Top Buyers China, Taiwan, Vietnam

Chinese Investors in California

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Chinese buyers have been California's largest foreign investor group for over a decade.

Why Chinese Buyers Choose California

  • Established Chinese communities (San Gabriel Valley, Cupertino, Fremont)
  • Top universities (Stanford, Berkeley, UCLA, USC)
  • Technology employment opportunities
  • Climate similar to coastal China
  • EB-5 visa investment pathways

Capital Movement Strategies

Chinese foreign exchange controls limit individuals to $50,000 USD/year.

  • Multiple family member quotas
  • Funds held offshore (Hong Kong, Singapore)
  • Business account transfers (documented)
  • Mortgage financing to reduce capital needs
CFIUS Considerations: Properties near military bases may require additional review. California has several sensitive areas.

Required Documentation

  • Passport and visa documentation
  • Source of funds documentation
  • Bank statements showing transfer history
  • Employment or business verification
  • Gift letters if using family funds

H-1B Tech Workers: Home Buying Guide

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Yes, H-1B holders can buy property. Your immigration status does not affect your ability to purchase real estate.

Financing Considerations

  • Conventional mortgages available - Most lenders finance H-1B holders
  • Employment verification - Stable tech employment required
  • Green card pending - Helps (not required)
  • Same rates as citizens - No visa premium

Required Documentation

  • Valid H-1B approval notice (I-797)
  • Valid passport and visa stamp
  • Employment verification letter
  • 2 years of tax returns
  • Pay stubs and bank statements

If You Leave the US

  • Property ownership is not affected by immigration status changes
  • You can keep the property and rent it out
  • You can sell (FIRPTA withholding applies)
  • Mortgage payments must continue

H-1B Friendly Lenders

Lender Type H-1B Friendly? Notes
Big Banks (Chase, Wells Fargo) Yes Standard documentation
Credit Unions (First Tech) Yes Often better rates
Online (Better, Rocket) Yes Fast processing

California Tax Considerations

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13.3% top rate - Highest state income tax in the nation. Applies to rental income and capital gains.

State Income Tax on Rental Income

  • Rental income from California property
  • Capital gains on California real estate sales
  • All California-source income for non-residents
California vs. Florida: On $50,000 rental income, you could pay $5,000-$6,000 more in California state taxes vs. Florida's 0%.

Proposition 13 & 19 Property Taxes

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Prop 13 Benefits

  • Property assessed at purchase price
  • Maximum 2% annual increase
  • Reassessment only on sale or major improvement
  • Effective rate: ~1.1% of assessed value

Prop 19 Changes (2021)

  • Children inheriting property may see reassessment
  • Primary residence exclusions for heirs who move in
  • Investment property transfers trigger reassessment

California FIRPTA Withholding

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California requires its own withholding in addition to federal FIRPTA.

Tax Rate Base
Federal FIRPTA 15% Gross sale price
California Withholding 3.33% Gross sale price
Total Withholding 18.33% Combined federal + state
Reduce withholding: California Form 593-C can reduce or eliminate state withholding if actual tax liability is lower.

Frequently Asked Questions

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Is California worth the high taxes?

Depends on goals. Strong appreciation and established communities, but 13.3% tax impacts rental returns. For pure investment, Florida/Texas offer better cash flow.

How do I move money from China?

$50K annual limit is challenging. Use multiple family quotas, offshore funds (HK/Singapore), or mortgage financing to reduce capital needs.

Should I buy near my Bay Area employer?

With remote work, proximity is less critical. Consider better value areas (Fremont, East Bay) rather than overpaying for Palo Alto.

Best school districts for foreign families?

Cupertino, Palo Alto, and Irvine rank top with large international populations. Premium prices reflect school quality.

Can I use property for EB-5 visa?

Passive real estate doesn't qualify. Invest in EB-5 regional center projects for real estate development. Min $800K-$1.05M.

Foreign ownership restrictions?

Generally no restrictions. Properties near military bases may need review. Some condo associations may have foreign ownership limits.