Chinese Buyers Snapping Up U.s. Real Estate

[The Masked Tulip]

Same thing to happen here as the Pound tanks?

http://live.wsj.com/video/chinese-buyers-snapping-up-us-real-estate-2013-02-26-2311537/AA999C97-031A-45E5-886A-1A00D72E51D0.html#!AA999C97-031A-45E5-886A-1A00D72E51D0

[Mrs Bear]

Same thing to happen here as the Pound tanks?

http://live.wsj.com/video/chinese-buyers-snapping-up-us-real-estate-2013-02-26-2311537/AA999C97-031A-45E5-886A-1A00D72E51D0.html#!AA999C97-031A-45E5-886A-1A00D72E51D0

Isn't it happening already? Particularly shiny newbuild flats - I gather they're not much interested in older property unless it's prime or super-prime.

[Bloo Loo]

estate agent says business is booming.

with 10m houses for sale, I think the Yanks had better get borrowing and buying...just in case they miss the boat...course the chinese will be blissfully unaware that legal title to millions of US properties is blighted by the bankers MIRS fiasco.

[Venger]

Isn't it happening already? Particularly shiny newbuild flats - I gather they're not much interested in older property unless it's prime or super-prime.

It has already significantly happened, in the boom years, and desperate stimulus years.

The more interesting question I think is whether the foreign owners who already own in UK, with the pound sliding a bit, the prospects going forward, together with fragile weak growth, will jolt more foreigners into putting their UK homes on the market.

If so, more supply onto market, perhaps with more motivated sellers... and remaining foreign wealth not already committed facing stamp duty changes, with choice of investing in many other countries as well, including the USA. The resulting sentiment change were that to occur likely to be felt keenly.

The Smith Institute estimated that 60% of homes in central London were bought by overseas investors in the first half of 2011. Figures from Jones Lang LaSalle suggested that only 19% of central London developments during an unspecified time period were bought by British people.

This extends beyond the so-called prime postcodes, where stereotypes of Russian oligarchs come to mind. According to Jones Lang LaSalle, many of those buyers were snapping up one- and two-bed homes in new developments across London, often without even looking at the property, propping up the market where first-time buyers are priced out.

Foreign buyers are one part of a bigger picture of under-occupation in London. The 2011 census revealed that there are an astonishing 229,803 second homes in London, many of which will be owned by British residents. Put very crudely, that is seven times the mayor's annual housebuilding target.

http://www.guardian.co.uk/housing-network/2012/nov/28/london-property-foreign-investors-housing

[ToughEgg]

Do they know about the mansion tax we can expect in 2015 and are EAs going to tell them?

I reckon we need a publicity campaign for the mansion tax

[Bruce Banner]

Same thing to happen here as the Pound tanks?

http://live.wsj.com/video/chinese-buyers-snapping-up-us-real-estate-2013-02-26-2311537/AA999C97-031A-45E5-886A-1A00D72E51D0.html#!AA999C97-031A-45E5-886A-1A00D72E51D0

Let's hope so. The less properties owned by "hard working families", when the music stops, the better.

[wherebee]

What amazes me in that in the US, UK, and Australia foreigners are allowed to buy property with very little difficulty. Try that in China or any country with a half decent idea of how the world works, and you will soon be given short shift.

And yet the voters do not seem to care....

[okaycuckoo]

Beware! There was a fuss in Canada a couple of weeks ago about EAs posing as Chinese buyers to big-up the Vancouver market.

There was a TV expose etc. and the ultimate point is that domestic buyers drive the market, not outsiders.

Reference to it from a Chinese news source here:

http://vreaa.wordpress.com/2013/02/23/south-china-morning-post-headlines-mac-marketing-deceit-bogus-buyers-scam-teetering-market-steadily-falling-prices/

They think everyone's stupid, but that's not really true.

[19 year mortgage 8itch]

Beware! There was a fuss in Canada a couple of weeks ago about EAs posing as Chinese buyers to big-up the Vancouver market.

There was a TV expose etc. and the ultimate point is that domestic buyers drive the market, not outsiders.

Reference to it from a Chinese news source here:

http://vreaa.wordpress.com/2013/02/23/south-china-morning-post-headlines-mac-marketing-deceit-bogus-buyers-scam-teetering-market-steadily-falling-prices/

They think everyone's stupid, but that's not really true.

http://www.greaterfool.ca/2013/02/14/the-myth-of-ham/

[Sledgehead]

Seen it all b4. Mum was looking to sell her childhood home in Bath in the early / mid nineties. Her brother kept holding out for the rich Hong Kongese flocking to the London market. When the ink had finally dried on the handover documents in 97 her brother capitulated - having ridden the bear right to the bottom with not one member of the former colony expressing even the slightest interest.

[wherebee]

Seen it all b4. Mum was looking to sell her childhood home in Bath in the early / mid nineties. Her brother kept holding out for the rich Hong Kongese flocking to the London market. When the ink had finally dried on the handover documents in 97 her brother capitulated - having ridden the bear right to the bottom with not one member of the former colony expressing even the slightest interest.

If it is all a myth, why is my postbox in Hong Kong full EVERY DAY with multiple flyers for London property? Why is the South China Morning Post printing large, half and full page adverts EVERY DAY for London property? Why have I seen dozens and dozens of small offshore companies owned by mainland Chinese owning property in Australia and the UK? Why, when I lived in Australia, of the 15 houses in my street, I knew of 4 that were owned by Chinese or Singaporeans (didn't know about the rest), of which two lived in and two were rented out.

Some myth.

Edited February 28, 2013 by wherebee

[interestrateripoff]

Will they get visa's to live there?

[SHERWICK]

I gather they're not much interested in older property unless it's prime or super-prime.