Posted on 11/19/2014 12:31:23 PM PST by SeekAndFind
In a nation in which 1 out of every 3 homes is unaffordable, you’d think the primary goal of public policy wouldn’t be to ensure real estate becomes even more out of reach for the average citizen. However, we live in a country in which policy isn’t being driven by logic and what’s in the best interest of “the people,” rather, we live in an neo-feudalistic society in which policy is being driven by what is best for a handful of white-collar criminals.
It’s bad enough that American financial oligarchs have leveraged free money polices of the Federal Reserve to purchase tens of billions of dollars in real estate only to rent it back to people who were kicked out of their homes during the 2008 crisis, but the government is now going out of its way to allow Chinese (and other foreign criminals) to launder money via U.S. property.
In case you aren’t up to speed on this issue, I suggest reading the following:
Chinese Purchases of U.S. Real Estate Jump 72% as The Bank of China Facilitates Money Laundering
Zillow Opens the Floodgates to Chinese Buyers in Order to Keep Housing Bubble 2.0 Inflated
Apparently, the level of ill-gotten funds flowing into U.S. real estate still hasn’t reached the level desired by policy makers. As such, China and the U.S. have extended the terms of multiple entry short-term tourist and business visas to 10 years from one year. Reuters reports the result has been a 35% jump in Chinese interest:
(Reuters) – Chinese inquiries about real estate investment in the United States surged 35 percent this week after the two countries agreed to extend the terms of short-term visas, China’s top international property portal said on Friday.
The White House announced this week that both countries have extended the terms of multiple entry short-term tourist and business visas to 10 years from one year. Student visas were extended to five years from one year.
The relaxation on student visas could have a bigger impact than the other two, said Juwai.com, an online property marketplace that refers potential Chinese buyers to overseas agents. It said there were twice the number of inquiries about student visas compared to tourist and business visas.
Millennials had better fluff up that basement couch.
Just another facet in the gem of obscuring America.
There's no cure nor correction for all that's wrong and happening except to shut the doors, put up the "closed" sign and sit down with the employees and discuss our future.
Old news. The big Chinese money came in 3 years ago. It’s pretty much dried up over the last year. Anyway, California has always had high housing prices and this has actually helped a lot of homeowners who have been underwater since 2008. I’m old enough to remember when everyone was screaming about Japanese buying up real estate. A few years later they were selling them at a loss. If they create a bubble, it will burst and they’ll get burned eventually.
visa rules have not mattered anyway... anyone can buy USA real estate regardless of where they reside...(and as we know, anyone can enter USA in a number of ways too, whenever they may wish to visit their real estate here or even move in, as some do).
depending on neighborhood, between a third and 75% of used houses are being bought up by Communist China people...per the realtors in California
has been true for some years, such that entire communities are now heavily Chinese-owned
RE: depending on neighborhood, between a third and 75% of used houses are being bought up by Communist China people...per the realtors in California
Residential or Commercial? If residential, what are they doing with it? Are they living there or renting them out?
Here in NYC, the iconic Waldorf-Astoria Hotel was recently sold to a Chinese Insurance Company.
The Japs did that over a decade ago, and look what that did for them. They can’t ship it back home.
some come here and stay here, some just buy and rent the houses out (so they have them in case they decide to come here later in life).
residential is all I was commenting on, I do not know as much about commercial properties —sorry.
houses which might (this is an estimate, nobody really knows precisely).... might have been selling for maybe $3 or $400,000 are going now for between $1 million and $3 million, depending on neighborhood. Regular American workers, including those with advanced degrees and high paid jobs, are mostly priced out. They are either commuting 5 hours a day or else leaving the area entirely.
The local public school ratings go up when the Chinese do move in, because they make their kids do their homework.
Otherwise, about all i can say is that my parent’s $11,500 home (many moons ago, admittedly) which we might have expected would be selling today for something like $400,000 (giving the neighborhood a premium but basing it on areas where the Chinese have not been buying as much)....... is now a $3 million house.
I do not know the split between living in the houses and renting them out, but guess it is about 50/50 because I do know from realtors that many of the buyers are in PRC and apparently stay there (at least for some time), they do not all pick up and move to USA when they buy houses here, and many of them wire their purchase funds (usually they buy outright, without any loans)...in from Asia. But the Chinese populations of many towns have gone from miniscule to majorities..... so many of them ARE moving here, too. Therefore, its a split.
Best i can do.
Hope it helps
one difference, the Japanese were largely buying “Trophy” properties.... large commercial malls and office blocks and golf courses and resorts and so forth.
Not that they didn’t buy some houses, too, but much of the Japanese money went into these big high-profile investment type purchases.
The PRC people are largely buying little used houses, residences. I imagine they are also buying some commercial property but their big impact on the realty markets is always talked about in terms of the very large number of used houses they are buying.
Whether this will prove to have a different future than the Japanese experience, I do not know.... we will see....
~depending on neighborhood, between a third and 75% of used houses are being bought up by Communist China people...per the realtors in California
has been true for some years, such that entire communities are now heavily Chinese-owned~
Do you mean California might become more communist than it is?
Ha! Doubtful Californicate can become “more communist. At least in the biggest cities, the Republican party is almost invisible, with sometimes only token sacrificial candidates and little actual campaigning. And, some folks don’t even call it the Republican Party Instead, we’ve seen some of them hesitate and then cover their faces and whisper “the R’s” — very quickly so as to cause the least possible offense The biggest problem isn’t the democrats or the Mexican immigrants or election fraud. The biggest problem is the near- absence of a serious alternative party apparatus, leadership, funding, you name it. And yes, if you look up the local R party you may find it is led by status- quo “country club” types that few people of any political stripe would want to vote for anyway since they offer little of interest to anybody other than themselves. Go figure.
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