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macbeth79

Buyers From China Spent $28.6 Billion On U.s. Homes In The Past 12 Months

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Chinese buyers topped Canadians to rank as the biggest foreign purchasers of U.S. homes by both sales and dollar volume, accounting for more than a quarter of all international spending.


Buyers from China spent $28.6 billion on U.S. homes and made up 16 percent of transactions by foreigners in the 12 months through March, according to an annual report released Wednesday by the National Association of Realtors. Canadians, which had led international purchases since 2008, ranked second with $11.2 billion in spending and a 14 percent share of sales.


Homebuyers from China have flooded into the American market in recent years amid growing affluence by residents of the world’s most populous nation, where the U.S. is viewed as a safe haven for wealth. They’re typically buying more expensive properties, with an average purchase price of $831,800, compared with $499,600 for all international buyers.



http://www.bloomberg.com/news/articles/2015-06-17/chinese-top-list-of-foreign-buyers-of-u-s-homes


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But there's a $10,000 money transfer limit out of China. They can't possibly be buying luxury real estate (unless there's something shady going on here)

The rules don't apply to the wealthy, if you have the right connections I'm sure that $10,000 limit can be made to disappear.

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The limit is actually 50,000 per person per year. You and the wife? 100,000. You, the wife, and a kid? 150,000. You, the wife, kid, four grandparents? 350,000 per year, fully legit.

Plus it's very easy, if you are working in a firm that has international connections, to legally get a %age of your salary paid into a non China situation, paid for by the foriegn subsids of the Chinese firm. The controls are about money crossing the border, not money earned overseas.

The real story here is not the money route, but the lack of control on foreign buyers compared to if you were trying to buy in China. The Chinese are, rightly, taking us for idiots.

Edited by wherebee

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The limit is actually 50,000 per person per year. You and the wife? 100,000. You, the wife, and a kid? 150,000. You, the wife, kid, four grandparents? 350,000 per year, fully legit.

Plus it's very easy, if you are working in a firm that has international connections, to legally get a %age of your salary paid into a non China situation, paid for by the foriegn subsids of the Chinese firm. The controls are about money crossing the border, not money earned overseas.

The real story here is not the money route, but the lack of control on foreign buyers compared to if you were trying to buy in China. The Chinese are, rightly, taking us for idiots.

They will end up as landlords

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This is happening in the UK also they are not only buying in London.

As I have posted previously they are buying dumpy commercial properties also which would really need a local to turn around.

Something is not quite right when we are told to invest in China and they cannot wait to throw their money on any crap outside their own country.

Smells like somethings afoot there

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I think whole point of transferring factories / jobs/ wealth there is to destabilize it when it is taken away. The financial crisis has only just begun. The Americans will probably adjust to not being able to buy so much Chinese goods more quickly than the Chinese can adjust to closing factories.

This can actually be reversed.

The battle is really on now, as they start to bypass the petrodollar. Trading directly with Russia for oil and gas. There is no clear winners. I would think China and Russia are going to loose. The smart thing would be to bet on all the horses in the race.

The rich Chinese may bet hedging their bets.

Even if they think China will end up ruling the world they would have a back up just incase it gets crushed financially.

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It may just be Summer selling season, or deluding themselves (bears do premature congratulation all the time) but a good California housing blog has comments noting more inventory to market (from very very low levels) recently.

(A few weeks ago) ~ 'Noticing inventory is up substantially in Inland Empire.' (non prime).

The other day:

The hot money coming from Chinese nationals is down to a trickle.

SFR home prices in 5 of 8 Irvine zip codes, as well as parts of the San Gabriel Valley, are down year-over-year due to the Chinese government anti-fraud crackdown. The red hot Red Chinese national real estate money of 2013 and 2014 are now history.

Some saying seeing a welcome pickup in inventory (from very low levels) to market in Fremont in S.F. Bay Area, whilst others saying same for Sacramento eastern suburbs* (but at very high asking prices), but that there 'appears to still be a solid flow of buyers to soak it up at high prices with transactions matching 'from foreign IT workers'.

One Cali landlord making this comment. 'Above $2.5M properties taking much longer to sell than 12 months ago.' (but brisk transactions $700K+)

(*One claiming there's a rumour Intel Folsom may be making some streamlining to its workforce this year.)

Wider areas, some seeing significant increase in foreclosures coming to market on RealtyTrac, whilst going on about stores continuing to close.

San Gabriel Valley + more of Inland Empire, some saying big jump in houses becoming available (still at very high asking prices).

Culver City, one reporting last few weeks a pick up in houses to market (but at prices way higher than last bubble).

Maybe some sellers will blink and accept lower prices, bringing wider market values down, as a trigger.

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