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.
According to The Wall Street Journal, the most popular story on WSJ.com on Monday was a report about how Lennar (LEN) may apply for a $1.7 billion loan from China to help finance major multifamily housing developments in San Francisco.
Valued at $10.5 billion in total, the projects to reincarnate two former Pacific Coast naval bases as mixed-use residential and commercial real estate have run aground over lack of funds. As a result, Lennar appears poised to open the door to China owning an interest in a big chunk of prime U.S. beachfront real estate. And that's just the start.
According to The Wall Street Journal, the most popular story on WSJ.com on Monday was a report about how Lennar (LEN) may apply for a $1.7 billion loan from China to help finance major multifamily housing developments in San Francisco.
Valued at $10.5 billion in total, the projects to reincarnate two former Pacific Coast naval bases as mixed-use residential and commercial real estate have run aground over lack of funds. As a result, Lennar appears poised to open the door to China owning an interest in a big chunk of prime U.S. beachfront real estate. And that's just the start.
Actually, what you're really looking at is capital flight from China, not an attempt for the Chinese to take over the country. The Chinese are undergoing a hard economic landing right now based on a highly overvalued real estate market with astounding excess in inventory (Right now the inventory on hand in places like Shanghai and Beijing are roughly 10-11 years. The United States, at the high of the real estate bubble, had roughly 10-14 months). Smart Chinese have figured this out and are trying to put their money someplace that's relatively safe.
I mean, if we got into the Way Back Machine in the late 80s, don't you remember the Japanese doing precisely the same thing, purchasing American property right and left, right before their real estate bust? Personally, I think the surge of investment from both the Chinese and the Europeans is a pretty good thing, and not really fodder for xenophobic nonsense.
If Lennar is merely borrowing the money then Chinese interests arent buying anything, unless they fully expect it to go under. In any event why is this news? Chinese money finds its way into American banks capital which gets loaned out, but this is not buying anything. Until you hear these are joint EQUITY ventures a Chinese loan is merely just a way to diversify risk away from overexposure to home markets.
The article title and the title of this thread are completely deceiving and are not an accurate representation of what is actually happening in the article. They are just offering a financial investment loan to the developers. They assume all of the risk, so they should get all of the returns. I am sure American investors would be interested and go in on this deal IF its really a good idea. This has been happening for years and years, nothing new.
According to The Wall Street Journal, the most popular story on WSJ.com on Monday was a report about how Lennar (LEN) may apply for a $1.7 billion loan from China to help finance major multifamily housing developments in San Francisco.
Valued at $10.5 billion in total, the projects to reincarnate two former Pacific Coast naval bases as mixed-use residential and commercial real estate have run aground over lack of funds. As a result, Lennar appears poised to open the door to China owning an interest in a big chunk of prime U.S. beachfront real estate. And that's just the start.
It's not like American investors haven't taken over some of the greatest beach front property in the Caribean and Central America. If the Yankee dollar can buy up beach front property in Mexico and Central America, why not the Chinese yuan buying it up in America when they get the chance.
As far as business investors are concerned: It's about making money, not what flag you're waving.
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.
