3 ms·

Chinese all-cash buyers of U.S. homes have tripled

2 points by SQL2219 11y ago

SQL2219 11y ago
Our Midwest workplace recently hired a developer from California who could not afford to buy a house. He said competition from all cash buyers made it very difficult.
MrQuincle 11y ago
The other article also published yesterday, http://www.marketwatch.com/story/the-danger-of-foreign-buyers-gobbling-up-american-homes-2015-10-08 http://www.marketwatch.com/story/the-danger-of-foreign-buyer... makes it look very grim. However, is there data available, or is there statistics on the economic disaster for the average American that is sketched here? It's one thing to not to have poor immigrants. It's another thing if you also not want to have rich immigrants... (That is, if these people are actually living part of the year in their homes). There is also a lot of political room to improve the situation for the average American. If the super-rich in America become all Chinese, progressive tax reforms might accelerate. This in itself might start to bridge the gap between the rich and the average Americans. Also, homes don't just sit there. People live in it, do their groceries, repair work, go out. There is additional money pumped into the economy by rich people living in it. Money they otherwise would spend in China. Moreover, it is possible to build more houses. :-) I don't think the US is such a crowded place that we've to worry about space. These are all speculative mechanisms at work... Some scientific studies are definitely necessary here.
- venomsnake 11y ago
  > It's another thing if you also not want to have rich immigrants... (That is, if these people are actually living part of the year in their homes). Rich immigrants that obtained their wealth trough shady means. It works wonders for the Londoners - the average guy is so much better there since the city began to be oligarch's playground. Probably for a lot of people not shaking things that work too much is a good thing. And inflated prices in illiquid marked tend to create very painful corrections once shit hits the fan.

2 points by SQL2219 11y ago

Our Midwest workplace recently hired a developer from California who could not afford to buy a house. He said competition from all cash buyers made it very difficult.

MrQuincle 11y ago

The other article also published yesterday, http://www.marketwatch.com/story/the-danger-of-foreign-buyers-gobbling-up-american-homes-2015-10-08 http://www.marketwatch.com/story/the-danger-of-foreign-buyer... makes it look very grim. However, is there data available, or is there statistics on the economic disaster for the average American that is sketched here? It's one thing to not to have poor immigrants. It's another thing if you also not want to have rich immigrants... (That is, if these people are actually living part of the year in their homes). There is also a lot of political room to improve the situation for the average American. If the super-rich in America become all Chinese, progressive tax reforms might accelerate. This in itself might start to bridge the gap between the rich and the average Americans. Also, homes don't just sit there. People live in it, do their groceries, repair work, go out. There is additional money pumped into the economy by rich people living in it. Money they otherwise would spend in China. Moreover, it is possible to build more houses. :-) I don't think the US is such a crowded place that we've to worry about space. These are all speculative mechanisms at work... Some scientific studies are definitely necessary here.

venomsnake 11y ago
> It's another thing if you also not want to have rich immigrants... (That is, if these people are actually living part of the year in their homes). Rich immigrants that obtained their wealth trough shady means. It works wonders for the Londoners - the average guy is so much better there since the city began to be oligarch's playground. Probably for a lot of people not shaking things that work too much is a good thing. And inflated prices in illiquid marked tend to create very painful corrections once shit hits the fan.