Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I'm sorry, but I don't see the connection between putting obstacles in front of foreign buyers, and the other issues you mentioned (eg bail out money etc). Are you saying the bail out is bad, therefore we should make it hard for foreigners to buy US real estate? It sounds like a non-sequitur to me.
I don't think she understands how mortgage backed securities work because she keeps tying it in with foreigners buying property here.
Good, at least they'll keep the places clean and relatively crime free. At least they'll keep their kids in school and see that they all go to college and graduate....and become productive members of U.S. society....At least they'll learn to speak American Standard English.....
It is obvious that Americans are corrupt, greedy, wasteful, spendful with a savings rate less than 5%, and continue to borrow money at an extraordinary rate from the Chinese. China is lending trillions of dollars to the U.S.
The Chinese have the right to buy these homes because it is theirs. If you don't want the Chinese to buy these U.S. homes then stop defaulting on your loans and buy them yourself! Common sense.
In addition, the Chinese have the $$$$$ to buy these houses while you don't. An eye for an eye. It is fair game. That is how globalization works. The world doesn't just revolve around America.
I am half Mexican, so yes I have been to Mexico and I agree it is not even close to what Americans generally think about it. But when I drive down Baja from TJ to Ensenada to La Bufadora and see incomplete houses on the beach that have been there for years I wonder if their real-estate could use a little pick me up.
But you know what after thinking about it, that's what makes Mexico what it is and I love it like that.
Overall I would call this whole process of gaining money by foreign investment, as well as our companies entering foreign lands "highly American".
I have been to Mexico too, and about 90% of the people live like ----. There are a few wealthy people, but most are very poor.
GeorgeP23, I do understand how mortgage backed securities work (which many people do not). Most banks do not have the money to lend to an individual they have to get it from investors and most of the investors are foreign (not American). Loans are chopped up into pieces.
Part of the problem I am having with this meltdown of the homes and the bailout/stimulus money is the following: 1. The banks are not working with the homeowners to stay in their homes, 2. When the homes go up for auction (this is after the homeowner tries selling it for a short sale) the bank buys the home back (continuing the mess), 3. the banks then ask for a bail out & or additional money to pay off their (foreign) investors and proving that they have too many liabilities on their balance sheet, 4. Once the US government (tax payers) pay for the problem then the banks sell the properties at a profit. 5.The foreign investors are not taking as much of a hit as the US people are taking. 6. For all the people who say it doesn't matter, just wait.
Too add, I wanted the US to make it harder/.more costly to foreigners to pay for buying property in the US because 1. there is a cost to do so in their countries, 2. one of the last things the US can sell foreigners is the opportunity and lifestyle their country may not offer, so it should cost. It is a privilege to be here even in these economic times. Just try going to another country with these types of economic problems the US is facing and people loosing their jobs the lifestyle abroad would be difficult and dangerous.
GeorgeP23, I do understand how mortgage backed securities work (which many people do not). Most banks do not have the money to lend to an individual they have to get it from investors and most of the investors are foreign (not American). Loans are chopped up into pieces.
Part of the problem I am having with this meltdown of the homes and the bailout/stimulus money is the following: 1. The banks are not working with the homeowners to stay in their homes, 2. When the homes go up for auction (this is after the homeowner tries selling it for a short sale) the bank buys the home back (continuing the mess), 3. the banks then ask for a bail out & or additional money to pay off their (foreign) investors and proving that they have too many liabilities on their balance sheet, 4. Once the US government (tax payers) pay for the problem then the banks sell the properties at a profit. 5.The foreign investors are not taking as much of a hit as the US people are taking. 6. For all the people who say it doesn't matter, just wait.
Ok so what does that have to do with not allowing foreigners/making it more expensive for foreigners to buy property here like you said before?
Too add, I wanted the US to make it harder/.more costly to foreigners to pay for buying property in the US because 1. there is a cost to do so in their countries, 2. one of the last things the US can sell foreigners is the opportunity and lifestyle their country may not offer, so it should cost. It is a privilege to be here even in these economic times. Just try going to another country with these types of economic problems the US is facing and people loosing their jobs the lifestyle abroad would be difficult and dangerous.
I'm not sure I follow your rationale of making it more difficult for foreigners to purchase US property simply because there is a penalty for Americans to purchase their land.
If we allow foreigners such as Italians or Germans to purchase US property without penalty simply because they don't impose penalty on Americans buying their land... And we make it difficult for Chinese to purchase here in the US, wouldn't we be guilty for discriminating the Chinese?
I also have another question. Say you put your property on the market and a Chinese national comes and offer you top dollar well above the selling price, are you gonna refuse his offer simply because we can't buy their property in China?
GeorgeP23, I do understand how mortgage backed securities work (which many people do not). Most banks do not have the money to lend to an individual they have to get it from investors and most of the investors are foreign (not American). Loans are chopped up into pieces.
Part of the problem I am having with this meltdown of the homes and the bailout/stimulus money is the following: 1. The banks are not working with the homeowners to stay in their homes, 2. When the homes go up for auction (this is after the homeowner tries selling it for a short sale) the bank buys the home back (continuing the mess), 3. the banks then ask for a bail out & or additional money to pay off their (foreign) investors and proving that they have too many liabilities on their balance sheet, 4. Once the US government (tax payers) pay for the problem then the banks sell the properties at a profit. 5.The foreign investors are not taking as much of a hit as the US people are taking. 6. For all the people who say it doesn't matter, just wait.
The reason there is a bail out is because homes are not selling, their values are crashing, people are underwater in their mortgages and can't refinance, etc etc....
If you oppose the bail out, then you logically should be in favor of foreigners with money buying these homes. If people with money stood up to the plate and bought these homes, then there woud be no need for a bail out. The credit freeze we are experiencing will thaw, money will flow again, and the glut in the housing inventory will clear up.
But if you make it difficult for people with money (i.e foreigners) to buy these homes, then the thing that you despise most (i.e the bail out) will become a necessity. In other words, you are shooting yourself in the foot.
The reason there is a bail out is because homes are not selling, their values are crashing, people are underwater in their mortgages and can't refinance, etc etc....
If you oppose the bail out, then you logically should be in favor of foreigners with money buying these homes. If people with money stood up to the plate and bought these homes, then there woud be no need for a bail out. The credit freeze we are experiencing will thaw, money will flow again, and the glut in the housing inventory will clear up.
But if you make it difficult for people with money (i.e foreigners) to buy these homes, then the thing that you despise most (i.e the bail out) will become a necessity. In other words, you are shooting yourself in the foot.
Money circulates in one big cycle. The world is like a mutual relationship ....interlinked one way or another.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
