4 ms·
realy so why are non residents buying housing as an investment in London Sf NY and Vancouver? And if your rich diversifying from just a me to index fund makes
by walshemj 9y ago
realy so why are non residents buying housing as an investment in London Sf NY and Vancouver?
And if your rich diversifying from just a me to index fund makes a lot of sense hint if the Rothschild's and other mega rich families run actively managed funds its probably a good idea for you to - I have done very nicely out of RCP on the LSE
- seqastian 9y agoCause they can't find other save investments and have cash burning in their pocket.
- walshemj 9y agoWhy are not stocks /funds on the LSE NYSE the same unless the cash is from the black market and they cant pass money laundering regs?
- sanswork 9y agoSome countries have limits on how much money you can expatriate each year. Some of these also have rules that allow you to move more money as long as it is going to certain things(building industry, land/home purchases, etc).
- monort 9y agoI think upcoming CRS (the global version of FATCA) is one of the reasons. Investment accounts will be reported to homeland automatically.
- sidlls 9y agoMoney laundering, safe durable stores of value protected from their governments' confiscation efforts, pure speculation, and being on the wrong end holding the bag all spring to mind.
- blackguardx 9y agoRich people invest in property because they have enough money to view a million dollar condo as a diversification strategy. Property can be a good investment, but shouldn't be your only investment.
- sidlls 9y agoI'd take 10 houses for $200k in the Midwest over one $2m house in the Bay Area. Appreciation is lower, but rents (as a percentage of cost) are much, much better. The shortfall in appreciation can easily be made up for in better rent yield.
- sanswork 9y agoHow does it look once you account for closing costs on 10 houses, maintenance and management of 10 rental properties, etc?
- jeffdavis 9y agoConsider maintenance costs, vacancies, and management fees. Those can take a huge bite out of your rental income and easily drive you into the red.
- walshemj 9y agonot if you run it as a property company and not directly own them
- noobermin 9y agoI mean, what you're raising is a valid question and one that has been alluded to here before. However, it is pretty politically charged and it's only tangentially related to this article, hence it seems in poor taste to bring it up here.
- kenhwang 9y agoIt's very difficult for the Chinese government to discover or seize foreign property. If you illegally exported money from China, you couldn't exactly keep it in a bank where the Chinese government could claw it back. So you buy property in safe markets; housing doesn't drastically change in value (and often appreciates), the money gets "washed" in escrow by random citizens, it's very hard for housing to get stolen or lost (unlike other high value items, like precious metals, diamonds, cars), there's enough supply where the government couldn't possibly monitor all the markets, and it's high enough value where so you only need to succeed a handful of times.