5 ms·

The sad thing is - Chinese investors/CEOs then need to get the money out of China because they know it will crash eventually. So they invest in hot real estate

The sad thing is - Chinese investors/CEOs then need to get the money out of China because they know it will crash eventually. So they invest in hot real estate markets like Canada, US and Australia causing house prices to go to stratospheric levels and make it un-affordable for the locals.

appleiigs 9y ago
The locals sold at a price they wanted or they wouldn't have sold. The locals who have not sold are now much wealthier.
- sushid 9y ago
  Maybe I'm going off on a tangent but I hate these "Economics 101 dictates that a fair market price..." arguments. Yes, we're all aware of how the supply and demand curve works but you're not really addressing the grandparent comment's concern.
  - appleiigs 9y ago
    I'm saying the concern is not a concern. The wealth is spilling over to owners of real estate and tech companies like Origin7 from the bloomberg article. In other words, if the chinese investors/CEOs over-pay for assets like a talking cat, that is their problem (and to repeat - a benefit to the sellers).
  - icantdrive55 9y ago
    Yea--it's getting old, and all seems cool when your young and gleefully employed, or living off daddy quietly. The realeste issue wouldn't bother me so much if we were allowed equal property rights in these countries.
- TheCoreh 9y ago
  > The locals who have not sold are now much wealthier. And now have to pay much higher property taxes, which they might not be able to afford with their current income. For sure, they should be able to sell the property and buy a comparable one cheaper elsewhere (Thus netting some profit) however they're basically being priced out of the property they own, with no real choice. (Issue #1) Unless they can find a similar paying job wherever they move to (which might not be the case), they now need to face a much longer commute to work every single day, wasting hours that could previously be spent on leisure, with family, or doing work on the side to earn extra money. (Issue #2) The amount of profit they net from the sale of the property might be useful to compensate for this effect, if they're able to invest it properly, and depending on the specifics and market conditions. (Renting the property will probably result in a comparable outcome to investing the profits from the sale, which might or might not be enough to break even considered the increased commute time)
  - msie 9y ago
    At least in the province of British Columbia (where Vancouver is), home owner grants reduce the amount of property tax locals pay. Plus there are grants for seniors or people with low-incomes.
    - msie 9y ago
      And the vast majority of people who need it, get the grant.
  - eru 9y ago
    That's why we need land value taxes.
- mkehrt 9y ago
  You've assumed locals own the housing, when really most of them are renting. Rental prices go up; everybody loses.
  - deleted 9y ago
    [deleted]
wcummings 9y ago
Someone's gotta bail out the boomers... god knows millennials aren't going to relieve them of their overpriced homes.

appleiigs 9y ago

The locals sold at a price they wanted or they wouldn't have sold. The locals who have not sold are now much wealthier.

sushid 9y ago
Maybe I'm going off on a tangent but I hate these "Economics 101 dictates that a fair market price..." arguments. Yes, we're all aware of how the supply and demand curve works but you're not really addressing the grandparent comment's concern.
- appleiigs 9y ago
  I'm saying the concern is not a concern. The wealth is spilling over to owners of real estate and tech companies like Origin7 from the bloomberg article. In other words, if the chinese investors/CEOs over-pay for assets like a talking cat, that is their problem (and to repeat - a benefit to the sellers).
- icantdrive55 9y ago
  Yea--it's getting old, and all seems cool when your young and gleefully employed, or living off daddy quietly. The realeste issue wouldn't bother me so much if we were allowed equal property rights in these countries.
TheCoreh 9y ago
> The locals who have not sold are now much wealthier. And now have to pay much higher property taxes, which they might not be able to afford with their current income. For sure, they should be able to sell the property and buy a comparable one cheaper elsewhere (Thus netting some profit) however they're basically being priced out of the property they own, with no real choice. (Issue #1) Unless they can find a similar paying job wherever they move to (which might not be the case), they now need to face a much longer commute to work every single day, wasting hours that could previously be spent on leisure, with family, or doing work on the side to earn extra money. (Issue #2) The amount of profit they net from the sale of the property might be useful to compensate for this effect, if they're able to invest it properly, and depending on the specifics and market conditions. (Renting the property will probably result in a comparable outcome to investing the profits from the sale, which might or might not be enough to break even considered the increased commute time)
- msie 9y ago
  At least in the province of British Columbia (where Vancouver is), home owner grants reduce the amount of property tax locals pay. Plus there are grants for seniors or people with low-incomes.
  - msie 9y ago
    And the vast majority of people who need it, get the grant.
- eru 9y ago
  That's why we need land value taxes.
mkehrt 9y ago
You've assumed locals own the housing, when really most of them are renting. Rental prices go up; everybody loses.
- deleted 9y ago
  [deleted]

wcummings 9y ago

Someone's gotta bail out the boomers... god knows millennials aren't going to relieve them of their overpriced homes.