Who's Pumping Up the US Housing Market? China?

[longknife]

Chinese money rushing into U.S. residential real estate

Al Jazeera America ^ | 12/18/2013 | by Duarte Geraldino

Posted on Sunday, January 12, 2014 3:01:29 PM by SeekAndFind

New York) – The strong recovery of the housing market is attracting international buyers in record numbers reaching $82 billion in 2012. The National Association of Realtors (NAR) reports that after Canada, the People’s Republic of China (PRC) shows the strongest demand for U.S. residential property.

Read more @ Chinese money rushing into U.S. residential real estate | Al Jazeera America [certainly not a right-wing publication!]

Seems quite clear and makes sense when one realizes that a lot of property here in Vegas is being bought up for cash by foreign buyers. Are we selling our country off to the Chinese?

 

[Indofred]

That's capitalism.
The Chinese are better at it than you; live with it.

 

[TakeAStepBack]

Where is the credit to make these purchases coming from? The bank of China?

 

[Vox]

It is not only Chinese.
Many are buying properties instead of stocks - people understand that 17 trillion and counting is going to be resolved by massive inflation.
So do the Chinese, BTW.

 

[TakeAStepBack]

Others are emboldened by the PRC’s loosening restrictions on the flow of capital and are now looking to invest in American real estate. Evidence suggests these buyers are now expanding their search for properties beyond traditionally upscale areas of the country and New York City. "Brooklyn, the Bronx, Queens, the Chinese are not just buying in Manhattan," said Helen Lee, an executive at Onex Real Estate which developed Sky View Parc.

International buyers were involved in more than 6 percent of U.S. residential real estate deals in the year ending March 2013, according NAR. Those transactions were valued at roughly $68 billion. One out of every eight of these international deals involved a Chinese buyer. Aside from New York, NAR lists the most popular cities for Chinese investors as Los Angeles, Irvine, Detroit, Las Vegas and Orlando.

"They buy them for vacation purposes. Sometimes they buy them for their children so they can go to school in a specific city and rent out rooms in a house," said Jed Smith, National Association of Realtors. "In many cases they buy them for investment purposes."

To understand why NYC would be so attractive to international investors consider some key NAR sales data: New York Metro area condo prices rose 7 percent in the year ending March 2013. Single-family homes rose 5 percent in the same period. Those gains are higher than in other cities targeted by international buyers including: London (+ 2.7 %), Hong Kong (-23.1%), Moscow (+0.6%), Singapore (-13.4%), and Paris (+3.8%).

It sounds like most of these are being bought as investment properties. With the current rent prices in NYC hitting the roof due to forclosures, no capital and the ever increasing demand for housing, you have a sharp increase in price for posh buildings. This is hardly the results of a bubble. Which is being primed by none other than - you guessed it - the federal reserve.

 

[Indofred]

Where is the credit to make these purchases coming from? The bank of China?

Why credit?
Plenty of very rich Chinese about.

 

[TakeAStepBack]

So all of these purchases are being done with cash? Yeah, ok.

 

[Vox]

Where is the credit to make these purchases coming from? The bank of China?

Why credit?
Plenty of very rich Chinese about.

the article does not talk about any credits. it is being bought for CASH

 

[TakeAStepBack]

I highly doubt that. Highly. So, a Chinese Dude walks into a bank with 40 million dollars and buys a NYC highrise condo complex?




yeah, ok.

 

[Vox]

and it is not the Chinese only.
where I live it is mostly "new russians"

 

[Vox]

I highly doubt that. Highly. So, a Chinese Dude walks into a bank with 40 million dollars and buys a NYC highrise condo complex?




yeah, ok.

you can doubt it but that is how it is being done.
it is not a sack with benjamins, though.

 

[TakeAStepBack]

Link that proves "that is how it is being done"?

 

[Vox]

google is your friend

and if you don't want to believe it - it's a free country - yet - you may not

 

[Indofred]

I love people with undead brains.
They walk about, seeming to all the world as if they're normal, then they open their mouth.

You don't have to look far, just read a newspaper or two and, after checking the validity of what you read, you'll work it out.

BMW (yes, the luxury car maker) is exporting more vehicles to China than they are to the United states of America.
The Chinese are getting rich but American propaganda displays them as demi useless communists.
You have to look past the bullshit.

 

[longknife]

All one has to do is check local real estate posting to learn that many, many purchases are being made for cash of very low prices. Banks readily accept the cash in lieu of getting nothing.

 

[Vox]

I love people with undead brains.
They walk about, seeming to all the world as if they're normal, then they open their mouth.

You don't have to look far, just read a newspaper or two and, after checking the validity of what you read, you'll work it out.

BMW (yes, the luxury car maker) is exporting more vehicles to China than they are to the United states of America.
The Chinese are getting rich but American propaganda displays them as demi useless communists.
You have to look past the bullshit.

wrong. Not "the Chinese are getting rich" but "SOME Chinese are getting SUPER rich" - feel the difference.

There is more than billion people there. The percentage of the rich or even affluent is a miniscule one.

 

[Vox]

All one has to do is check local real estate posting to learn that many, many purchases are being made for cash of very low prices. Banks readily accept the cash in lieu of getting nothing.

My friend is a real estate agent. She has PLENTY of Canadians buying condos for cash only. Many listings for the real estate are for cash only anyway.
That has been a thriving business for the last 10 years at least.

Canada did not suffer any crisis, mortgage or otherwise and it is thriving - due to their reforms in the early 90s.

The reforms we need to pass in this country ASAP.

But not with this failure of an administration and the obstructionist in the Senate.

 

[Mr. H.]

China has entire cities that are sitting empty. Yet the Chinese are buying up housing units like crazy over there. It's about the only place (real estate) their gov't will allow them to invest (outside banks).