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Why is it so easy for foreigners to buy US property but it is difficult for the US citizen to buy in other countries?
The Chinese are coming, to buy bargain US homes (http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2009/02/12/international/i083518S78.DTL&type=realestate - broken link)
Hrmm let me look out my window...Yup, this is nothing new.
They can buy, but it doesn't mean they can stay, and they cannot vote.
My answer would be because our government wants to keep the economy going, by allowing foreign investment in our real estate, and they say it is not a threat. Key landmarks like Rockefeller Center are owned by foreigners, I believe the Chrysler Building is now owned by a Spanish company.
It does help keep land value up, which is a good thing, the last thing we need is to be worth nothing, but it also prices out people who live here.
They don't make it any more expensive for foreigners. The US should at least hold onto the land. This not something new you are right but in these economic times having more foreigners buy can be bad business planning.
As far as other countries not allowing foreign real estate investment...that is true, but sometimes when I see those countries it would make sense if they did allow it, Mexico for example would strive if they had more lenient laws on real estate.
Have you been to Mexico? In some parts it is very advanced and there are a lot of people with money and influence. Not everyone is like the poor we see on TV, same thing with Africa. They make more money off of leasing out properties to foreigners than to sell it. The US should take note.
Have you been to Mexico? In some parts it is very advanced and there are a lot of people with money and influence. Not everyone is like the poor we see on TV, same thing with Africa. They make more money off of leasing out properties to foreigners than to sell it. The US should take note.
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".
Why is it so easy for foreigners to buy US property but it is difficult for the US citizen to buy in other countries?
The Chinese are coming, to buy bargain US homes (http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2009/02/12/international/i083518S78.DTL&type=realestate - broken link)
because we are the land of the free;; as for Chinese coming to buy our homes, I can't understand why the attention now, this certainly isn't new? I sold Real Estate in Calif 30 years ago; 50% of our clientele, maybe not quite that much were Asian, most Chinese..
I've heard that foreign multinational companies have been buying up homes in areas like Stockton to hold onto for a few years to flip for major profit if the market ever rebounds. In the mean time they're renting them out
the answer to OP's question is actual very basic economics, there is not enough demand among the American population to purchase all of the available real estate in our country. Those with the funds to purchase the real estate aren't willing and/or those who are willing do not have the funds. to fill this void, the government has allowed foreign investment to purchase this excess real estate so they assets that are based on the "stable" American dollar/economy (note the quotes around the word stable). if foreign investment were made illegal, we would probably see something similar to what is happening now in the real estate market.
the answer to OP's question is actual very basic economics, there is not enough demand among the American population to purchase all of the available real estate in our country. Those with the funds to purchase the real estate aren't willing and/or those who are willing do not have the funds. to fill this void, the government has allowed foreign investment to purchase this excess real estate so they assets that are based on the "stable" American dollar/economy (note the quotes around the word stable). if foreign investment were made illegal, we would probably see something similar to what is happening now in the real estate market.
BRinSM I agree, but with this I tend to think: did we over build thus creating this extra demand that we cannot fill ourselves?
Also if we don't have demand for housing from our own citizens and we still have a pretty high poverty rate as an economic powerhouse, then are the citizens really driving this economy? Or is it being driven by foreigners?
I am not against a global economy, but I believe measures must be taken to protect the citizens from global fraud, the OP has a very valid point.
I guess the main question would be: Is there a tipping point when Americans are living out of cars, and foreigners are living in houses?
p.s. Sorry so many questions, but when our government says "it is not a threat" that's when my alarm goes off that we should question it.
Last edited by Mach50; 02-13-2009 at 11:55 AM..
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