2 ms·
But 36%? I mean, the Canadians don't have currency controls. Neither do the Mexicans. All three of the Big Three foreign real estate buyers have pulled back in
by bilbo0s 7y ago
But 36%?
I mean, the Canadians don't have currency controls. Neither do the Mexicans. All three of the Big Three foreign real estate buyers have pulled back in a material fashion this year.
Like I said, I just think something must be going on here. I don't think this can be waved off as "Well, it's just China."
- tapatio 7y agoWot? "Hispanics are experiencing the largest homeownership gains of any ethnic group in the U.S., a turnaround for the population hardest hit by the housing bust that could help buoy the market for years." https://www.wsj.com/articles/wave-of-hispanic-buyers-boosts-u-s-housing-market-11563183000 https://www.wsj.com/articles/wave-of-hispanic-buyers-boosts-...
- bilbo0s 7y agoUh... We're talking about foreign buyers. We mean "Mexican" buyers as in, actual citizens of Mexico. Not Mexican buyers as in, "That guy has a funny, spanish sounding last name, he must be Mexican." We're not talking about Hispanic Americans.
- kgwgk 7y agoNote that there are also millions of Mexicans which are US residents but not US citizens.
- JMTQp8lwXL 7y agoCompared to Mexico and Canada, China's economy has changed dramatically in the past 20 years. A middle class emerged in China. Tons of wealth created. A large number of potential purchasers of foreign real estate. Mexico is today where China was at the turn of the century (when comparing GDP).
- mobilefriendly 7y agoWhat's your source? Mexico's per capita GDP is the same as China's and Mexico's data is probably more accurate. Mexico is a middle income country and NAFTA has been transformative for Mexico in the last couple of decades.
- JMTQp8lwXL 7y agoI wasn't citing the per-capita numbers. Here's total GDP: China, 2000: 1.2 trillion USD [0] China, 2017: 12.2 trillion USD [0] Mexico, 2000: 700 billion USD [1] Mexico, 2017: 1.15 trillion USD [1] If GDP is a proxy for wealth, China --over the past ~2 decades-- had way much more potential in investing in foreign real estate. I don't understand why per capita GDP would be more relevant in determining which nation would have more capacity in investing in foreign real estate. That capacity for investment seems independent of how the wealth is divided among a countries citizens. [0] https://www.google.com/search?q=china+gdp https://www.google.com/search?q=china+gdp [1] https://www.google.com/search?q=mexico+gdp https://www.google.com/search?q=mexico+gdp
- rahimnathwani 7y ago"That capacity for investment seems independent of how the wealth is divided among a countries citizens." The rest of your comment makes sense. But this last part doesn't seem right: if wealth were distributed evenly in China, then there might be no Chinese buyers for US real estate. It's only due to inequality ('how the wealth is divided') that there is a segment who can afford this.
- JMTQp8lwXL 7y agoI don't think we'd be able to infer the wealth distribution from GDP per capita, either. Total GDP tied with the Gini coefficient might tell a reasonable story. But the premise of Gini Index of 1 leaving all people too poor to invest directly in U.S. Real Estate makes sense. I'm pretty confident that China's wealth distribution is far from perfectly equal among all citizens.