2 ms·
There are countries which prohibit foreign ownership of real estate. However capital controls typically prevent money from leaving, rather than entering. It wil
by aww_dang 5y ago
There are countries which prohibit foreign ownership of real estate. However capital controls typically prevent money from leaving, rather than entering. It will be interesting to see how this trend plays out.
- hkt 5y agoInteresting indeed - to have gone from a capital starved era that led to the fetishisation of direct foreign investment to an era where there's so much capital seeking returns that it gets turned away. A strange inversion if ever there was one.
- aww_dang 5y agoIt fits with the theme of declining globalization and increasing protectionism. Still it seems strange for an allegedly free and open capitalist nation to turn away capital. I suppose the political alternative would be questioning why the real estate market was managed in such a way to restrict supply, or disincentivize renting some of these foreign owned properties. Always easier politically to point and blame the external actors, the other tribe. If this latest measure proves ineffective and taking responsibility for domestic mismanagement is off the table, what comes next? Nationalization or a bail-in of foreign held properties seems extreme, but how far can this go?