Posted on 03/14/2016 5:58:43 AM PDT by artichokegrower
The flood of Chinese money into Bay Area housing is coming not just from home buyers. Developers and investors are also building and backing large residential projects here. They mainly want to diversify away from China’s overbuilt market but also serve Chinese buyers wanting a home in the Bay Area.
(Excerpt) Read more at sfgate.com ...
A common complaint is that the middle class and young people are being priced out of California housing. This could help explain why.
Same deal with my sister she sold her house in Palo Alto for cash to a couple from China.
it was on the market for one day.
Buy a house - get a green card
Has any Country in the past kicked out all foreigners and canceled their ownership of all properties? Just wondering.
My neighbor said he sold his ~1400sq house for 750K and is moving out. .
good for me!!
It usually happens after a Communist revolution/military takeover.
Cuba?
The Chinese do not mind “overpaying” for real estate because plenty of their motivation is to just get their money out of their country.
They also distort multifamily RE pricing because it is such an embedded tradition to own RE, especially rental real estate, that when you combine those two motivations, they will pay way too much for RE based upon traditional metrics.
I can’t say I blame them. When I was involved with real estate, Chinese investors would bid up the prices of small multifam duplexes and 4-plexes to where they made no economic sense.
In a free market, buyers are free to overpay, are they not?
The Japanese investors in hotels and golf courses did the same thing in the 70s. Bridgestone took over 30 years to turn their investment in Firestone to positive.
Offshored blood money coming back to the USA making housing unaffordable for the young middle class. We will be a nation of renters which is another milepost on the march to socialism. Thanks “Free Trade”.
“In a free market, buyers are free to overpay, are they not?”
In this case it only affects the young and middle class in California who are trying to buy a house. What if in your case it affected the price of fuel, medicine or food? China floods our markets with cheap products made by underpaid workers while destroying their nation’s environment. When the sh!t hits the fan they will just move over here.
Having blown up their own housing market, now they’re going to work on ours...
Everyone has to decide whether they would prefer government intervention over whatever the market chooses to do. I know where I stand.
Fine, then let’s have the government intervene, shall we? That ain’t socialism.
This is one of the all-encompassing reasons I’m backing Trump. In the name of global warming our government is experimenting with social engineering providing high density housing along bus and light rail routes and deliberately creating traffic congestion they call calming.
The Department of Transportation did a study and found Americans don’t want to move into these apartments but recent immigrants will. Recent immigrants are more apt to take public transportation. Here in California, the push is on for subsidized housing for the poor, their goal is 20 percent of the units. The Department of Transportation wants to interconnect these dense neighborhoods with high speed rail.
Then HUD came out and demands that every city turn in a yearly report on demographics to see if cities are taking care of the poor. HUD wants to override local zoning codes.
There are no American companies bidding on California’s high speed rail, they are all based in other countries. Countries that are attracting our companies with their lower corporate tax on foreign investments while we here in the U.S. saddle our companies with the worldwide system of taxes. This is the trillions of dollars Trump wants to bring home. We are using tax payer money for foreign engineering, the trains themselves, foreign busses and light rail trains.
https://en.wikipedia.org/wiki/Tax_inversion
The U.S. is unique among developed nations in imposing both a high statutory corporate income tax rate of 35 percent (effective corporate tax rates are lower) and imposing tax on the profits that domestic corporations collect from their subsidiaries abroad. This policy of taxing foreign profits is called a “worldwide” system of taxation, and it contrasts with the “territorial” system employed by most developed countries including the United Kingdom and Canada, which generally tax only profits from domestic activities.
In the LA Times excerpt below I suspect that EB-5 Visa is employed. I don’t have a problem with foreigners investing in America. I do have a problem with our government giving taxpayer money to them. In this article it does not state that these guys are from India, which is my assumption due to the fact they are expected to be hiding in India.
How much of our taxpayer money goes to foreigners and why?
http://www.latimes.com/local/lanow/la-me-ln-housing-indictment-20160205-story.html
David Zahniser and Shashank BengaliContact Reporters
Two executives at a Los Angeles-based real estate development company and two of their employees have been indicted by a federal grand jury on charges they defrauded government agencies of millions of dollars in funds for housing low-income families.
The 67-page indictment says Salim Karimi and three others at Advanced Development and Investment Inc. engaged in a conspiracy to fraudulently obtain more than $50 million in loan proceeds for affordable housing projects in Chinatown, Hollywood, Glendale and elsewhere.
As part of the scheme, Karimi and others submitted fraudulent invoices that “significantly overstated” the true costs of framing, plumbing, drywall and other construction work at affordable housing projects that were built with taxpayer support, according to the federal grand jury indictment, which was filed in 2014 and unsealed earlier this week.
I choose to not purchase Chinese products.
Wait'll you get your property-tax bill and your insurance package....and bill.
The Chinese government is using these people to mount a "soft power" demographic invasion of the West Coast.
Never mind its "softness", this is big-power wargaming for ownership of North America. We've just been engaged. The Chinese are finally coming.
They've watched our political fecklessness about immigration, and now they're using their slave-labor-subsidized "free trade" profits to drive an entering wedge into California.
Vancouver was a test. This is the real deal. I should imagine Hawaii's also on the shopping list. After all, the Chinese notified us a couple of years ago that they intend to "share" the central Pacific with us (after throwing us out of WESTPAC). The PLA-Navy visited Pearl Harbor a couple of years ago to participate in a naval exercise ..... and no doubt to measure the drapes.
Obama's parting gift (assuming he leaves): A Chinese demographic and (eventually) military enclave on the West Coast. Wonder if they want to buy San Diego, too? They're already in the Puget Sound complex, at Vancouver. Wonder how many ethnic Chinese are in Vancouver? Anybody keeping track, or is that insensitive and politically incorrect? Do the Chinese run Vancouver yet?
I learned by attending a police-community interaction meeting in 2008 that Chinese consular personnel were leaning on area Falun Gong members who were immigrants from China. One of the officers emphasized to the Falun Gong people, that no matter where they lived, as ethnic Chinese they were subject to, and if it came down to it, property of, the Chinese government. This hasn't happened since the German attempts to draft German-Americans in World War I. The Chinese government claims, and means to exercise, extraterritorial sovereignty over all "overseas Chinese", regardless of citizenship. Their Chinese ethnicity trumped all legal and other considerations and gave the Peking government rights in them. They were Chinese, period.
It's important that Americans understand this particular Chinese view: that Chinese immigrants to America never, ever lay down their allegiance to China.
The logical sequel is that any Chinese immigration in numbers is a demographic attack on the United States by the Chinese government, the same as if they'd sent Chinese infantry.
Unlike the inflooding Mexicans, the colonizing Chinese are backed by an ancient, imperial government that owns a nuclear arsenal, the will to use it, and a belief that China, by virtue of her numbers, is invulnerable to thermonuclear warfare at the top level. This is a truly dangerous enemy, and he is sending his people here not to become American citizens and pursue life, liberty, and happiness, but to work the imperial Chinese will on the kwai loh where they live, to dispossess and helotize them in their own country.
Dissenting opinions?
But now Chinese products are purchasing you. At the direction of the Central Committee of the Chinese Communist Party. How you like that, Sergeant Rock?
I believe in completely free markets inside the USA. As for commerce with other countries, I demand government intervention if that is what you want to call it. It is the job of the Federal Government to look out for what is best for the American people and not foreign interests.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.