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The "something else" is money laundering (i.e., all-cash purchases with zero oversight). Thankfully, the US government is finally starting to crack down on this
by yggydrasily 11y ago
The "something else" is money laundering (i.e., all-cash purchases with zero oversight). Thankfully, the US government is finally starting to crack down on this stuff:
http://www.nytimes.com/2016/01/14/us/us-will-track-secret-buyers-of-luxury-real-estate.html http://www.nytimes.com/2016/01/14/us/us-will-track-secret-bu...
But so far it's only in other cities. I'm hoping this will spread to the rest of the USA and then we won't have so many foreign criminals buying land with suitcases full of ill-gotten cash, driving up prices.
- bduerst 11y agoHopefully as the USD strengthens against the Yuan and Ruble, you'll start to see less international property laundering. Maybe even some will start to sell, putting supply back onto the market and lowering prices.
- abcampbell 11y agoI am not sure this is how that works.
- bduerst 11y agoWhich part?
- abcampbell 11y agoChinese investors are putting money into SF real estate with the goal of exporting capital to safer havens. Were China to choose to depreciate their currency (especially at a faster rate than they are currently) this could lead to an acceleration in attempts to export capital. It's not clear which way this linkage works (at least to me)
- bduerst 11y agoThe Chinese launderers are putting into SF property. In August 2015, 35% of new property in CA was bought by the Chinese (80% in Irvine alone). If the Yuan weakens to USD, the Chinese have less buying power in the U.S. for laundering, and existing launderers will be incentivized to pull out (sell).
- prostoalex 11y agoStrengthens against ruble in addition to 126%+ increase it booked over the past 24 months? https://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=Linear&chdeh=0&chfdeh=0&chdet=1452848172345&chddm=852077&q=CURRENCY:USDRUB&ntsp=0&ei=6rOYVsniAdTWiALQ7KK4Aw https://www.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&...
- bduerst 11y agoYes. I should have said continues to strengthen. With the continually dropping oil prices, the ruble isn't going to get better anytime soon.
- deleted 11y ago[deleted]