More Evidence Of Foreign Buyers Into Western Markets

[wherebee]

http://www.theage.com.au/business/property/chinese-buying-sydney-homes-at-record-rate-says-john-mcgrath-20130913-2tocn.html

[The Masked Tulip]

Having just read, in another thread, about a Chinese 22 year old buying a flat in London for 350K cash you have to wonder how much money laundering is going on via property.

Alas, I suspect all Western governments will turn a blind eye.

[SleepyHead]

'Britons never ever shall be slaves' ..... except now we are. The Chinese bought our country. We pay them to let us live here.

.

Edited September 13, 2013 by DogTired

[The Masked Tulip]

I think Oz is off the emigration list then. Ditto NZ.

I do think that both countries, in the coming century, could well find themselves in the middle of some US-Sino war. The battle lines are clearly being drawn now and, whilst this might sound like paranoid thinking, financial constraints are already limiting what the US can and cannot do.

Mineral resources in Oz are vital to both China and the US.

[slacker]

..... except now we are. The Chinese bought our country. We pay them to let us live here.

Will be interesting to see if this becomes an election issue.

With the UKIP causes likely a primary policy area - taxing foreign owned property could be popular even if not very practical from a protectionist front.

What I can't quantify is how much these overseas investors care if there is a crash or more tax - what if they see it as risking 20% by investing in UK property compared to risking 100% by keeping it somewhere else.

There was a recent US article I was reading about the number of all cash transactions from overseas investors as there were no background checks on US cash property transactions or something.

[onlyme2]

China puts the clamps on its own bubble tendencies. Prevents any foreign purchase. Limits purchase to one per person.

This spikes US/Western attempt to inflate chinese economy so that it is no longer so profitable to outsource western jobs (and whole company infrastructures).

China putting the clamp own own market purchase then drives more Chinese speculators to return the favour and further increase the malinvestement, cost and bubble economics in western countries - trashing what remains of any comeptitive edge and mops up the rest of manufacuturing and large parts of the service sector.

Game over, we lose, they win and all aided and abetted by our own central government and utterly complicit central banks.

[Wurzel Of Highbridge]

If I were Camoron or Osbrown, I would be secretly planning to get as much of that foreign cash in as quickly as possible then bolt the door using the proposed mansion tax etc.. to make it impossible for them to get their money back.

[onlyme2]

re above, which is just an extension of the direct pumping of the US treasuries market by the Chinese over the last decade or so - that cheap treasury rate was instrumental in allowing US banks and consumers destroy their own competitiveness, again totally in line with US govt and central bank support. Any economist that suggest the US got their trinkets for free fails to see how China got decades of industrial development for almost no cost, handed to them on a plate - knowhow, manufacturing base and direct skills, entrance into markets and whole product lines.

[slacker]

If I were Camoron or Osbrown, I would be secretly planning to get as much of that foreign cash in as quickly as possible then bolt the door using the proposed mansion tax etc.. to make it impossible for them to get their money back.

How much of it is actual cash and how much of it is mortgages with UK banks?

What if it really is Chinese students taking a shot to nothing - if it goes up sell at a profit, if it goes down then walk away as debt is with a bank overseas what do they care ...

Next we'll find it's all IO and there was some wheeze to not pay a deposit if you used a flakey debenture on your Chinese property as security ... and the companies doing it were taking care of the BTL side so all you had to do was sign a note and someone else did the rest

After that we'll find out most of these students never even existed and were just made up ...

Once we've all paid billions bailing out TBTFs from it we'll have more of our billions invested in to new quangos to stop it happening again ... fml

[Nuggets Mahoney]

I think Oz is off the emigration list then. Ditto NZ.

I do think that both countries, in the coming century, could well find themselves in the middle of some US-Sino war. The battle lines are clearly being drawn now and, whilst this might sound like paranoid thinking, financial constraints are already limiting what the US can and cannot do.

Mineral resources in Oz are vital to both China and the US.

I don't know about Oz but Chinese buyers are gradually picking up NZ dairy and other agriculture. There's also oil off the east coast of NZ, maybe a lot. There are plenty of cash-rich Chinese property buyers there, as well as here.

The US recently started shipping out marines to a permanent base in Darwin...

DT: Chinese anger at US base in Australia

Many Eurasian countries are queuing up to join the Shanghai Cooperation Organisation to counter what they see as Western (military) encroachment from all directions.

Not paranoid thinking on your part at all. There's a huge geopolitical chess game going on all around us.

Edited September 13, 2013 by Mullets Mahoney

[The Masked Tulip]

I don't know about Oz but Chinese buyers are gradually picking up NZ dairy and other agriculture. There's also oil off the east coast of NZ, maybe a lot. There are plenty of cash-rich Chinese property buyers there, as well as here.

The US recently started shipping out marines to a permanent base in Darwin...

DT: Chinese anger at US base in Australia

Many Eurasian countries are queuing up to join the Shanghai Cooperation Organisation to counter what they see as Western (military) encroachment from all directions.

Not paranoid thinking on your part at all. There's a huge geopolitical chess game going on all around us.

I didn't know about the possible NZ oil but it makes sense - much like the UK in continental shelf terms, just volcanic and prone to earth-quakes.

Yep, US is building a huge new base in Darwin and also I think Perth is becoming some US naval base. The Yanks are going back to Subic Bay in the Phillipines and have been extending Okinawa as well as deploying B1s, B2s and F-22s there.

I think within 5 years the Kiwis will have to give up their no nuclear policy for shipping and suspect we will see a US nuclear sub or carrier porting in a Kiwi port.

[mfp123]

If I were Camoron or Osbrown, I would be secretly planning to get as much of that foreign cash in as quickly as possible then bolt the door using the proposed mansion tax etc.. to make it impossible for them to get their money back.

well from the government perspective, foreign money coming in is a good thing for the country. it drives down the current account deficit, counts as an export and brings in billions in hard cash.

the probability of them bolting the door is close to zero given that the conservatives and conservative voters are probably the biggest land and asset owners in the country.

[blackgoose]

well from the government perspective, foreign money coming in is a good thing for the country. it drives down the current account deficit, counts as an export and brings in billions in hard cash.

the probability of them bolting the door is close to zero given that the conservatives and conservative voters are probably the biggest land and asset owners in the country.

Similarly the Labour politicians are property rich and are quite happy at having their assets inflate in value. Heck, even the labour's masters the union leaders are rich.