The Effect Of People Unloading Their Property Here
Readers suggested a topic on international speculation. “I read that alot of Argentinians are putting their money in real estate in their own country . You can’t lose money in real estate compared to currency devaluation. Chinese are buying homes in California since they are experiencing a bubble in China. Everybody wants to own a home in California.”
One said, “Moreno Valley will soon be entirely Chinese.”
A reply, “They’re snapping up the inland empire? LOL! They’re welcome to it! I guess it’s less smoggy than Beijing, so it’s all good.”
And finally, “Bought with worthless, useless, unbacked fiats that were traded for lots of precious Chinese-made junk not all that many years ago. We, us smart Americans, collectively shipped our already generated wealth - our dollars - to China AND we shipped our potential to generate wealth - our jobs - to China at the same time. And we laughed at the Chinese at the same time were doing it. People are smart.”
From China Daily. “About 50 million Chinese people are living overseas at present, according to the Beijing-based Center for China and Globalization. Investment and education are the main drivers of Chinese migration. Four countries - the United States, Canada, Australia and New Zealand - are the most popular destinations, the center said. Continually rising prices and tightening measures are combining to push more Chinese investors to seek overseas opportunities.”
“It took Sara Wang two days to decide to buy a two-bedroom apartment in London in October. The 35-year-old executive in a joint venture enterprise acquired the home only as an investment. She already has two apartments in Beijing, which means she isn’t allow to buy any more properties in the capital. And soaring property prices in China also make her worry about growing investment risk.”
“She paid the equivalent of 4 million yuan ($645,160) for the apartment in suburban London. The down payment was 30 percent. She expects to rent it for about 12,000 yuan per month. The purchase, Wang said, was a good deal based on the price-to-rent ratio and relatively low monthly payments. If she wanted to buy another apartment in China, she wouldn’t be able to get a mortgage, as she took out mortgages for her first two apartments.”
“In any case, the rent for a 4 million yuan apartment in Beijing would only be about 7,000 yuan now. ‘Moreover, in London, I get a 999-year lease. But in China, I paid for 70-year use rights,’ Wang added.”
KTAR in Arizona. “Speculation of a potential Canadian housing crash picked up with Canada’s December jobless jump to 7.2 percent, which is higher than the United States’ 6.7 percent. A potential Canadian real estate bubble will not hurt the Valley’s housing market, a local Realtor said. ‘The only effect I could see of a Canadian housing bubble popping is people unloading their property here for cash,’ said Diane Brennan, co-host of KTAR’s That Real Estate Show. ‘But we’re in a buyer’s market anyway so buyers would purchase those properties.”
“Canadian investors were a huge reason why the Valley’s real estate market recovered because they bought up many of the empty homes. Brennan said rumors of Canada’s housing market potentially tanking have been swirling around for a couple of years and those rumors are fueled by a weakening Canadian dollar. ‘I just had a Canadian couple cancel their offer on a Valley home because the Canadian dollar took a dive’, she said.”
