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I believe strongly that the market is also being floated by a significant influx of money laundering, whether that be Wall Street money or foreign money.
When hundreds of houses are purchased by foreign investor entities, for cash, well above common sense pricing, and then offered for rent at below reasonable ROI, I have to think resale value is secondary to laundering funds.
Quite possibly. I read recently about a Singapore outfit buying Raleigh real estate, which should raise eyebrows.
When I recently attempted to refinance my condo the lender was asking all sorts of questions about how I made my money and where specific large deposits came from into my business checking account. This never happened when I refinanced in the past. They probably are seeing a higher rate of money laundering also with people attempting to get loans.
I believe strongly that the market is also being floated by a significant influx of money laundering, whether that be Wall Street money or foreign money.
When hundreds of houses are purchased by foreign investor entities, for cash, well above common sense pricing, and then offered for rent at below reasonable ROI, I have to think resale value is secondary to laundering funds.
I worked at a Super Regional Bank from 2011-2014 and what always amazed me was the amount of trainings we were required to take to identify "criminal activity" (and I wasn't in retail, so I never once dealt with actual funds and accounts) given busting someone with a Suspicious Activity Report (auto generated if a bank transaction amount was greater than 10K) seems like small beans compared to the level of funds we are discussing here. Further, to your point, much of that scrutiny evaporates if a buyer is paying cash.
I chalk it up to simply how we (or specifically whom) writes the rules in this country; loopholes aren't mistakes more often than not. Doors are left open because the people writing the rules use those doors (or the people who pay them do).
Then again, I grew up in a country where non citizens were barred from owning property (short of having a "silent local partner").....but that would be a hill too far here.
Quite possibly. I read recently about a Singapore outfit buying Raleigh real estate, which should raise eyebrows.
I read a recent article describing how the Chinese are purchasing a lot of residential property in the US.
“In addition to their farmland holdings, China owns more residential real estate than any other foreign country, which has a significant impact on the real estate market on the West Coast. Sound far-fetched? According to Market Watch, “Chinese buyers accounted for roughly 25 percent of total foreign investment in U.S. residential real estate.” Canada was far behind at a relatively scant 9 percent.”
Another recent blurb from CNBC:
“Chinese buyers are particularly important to watch, as China had taken over as the lead demand for U.S. housing in the early part of the last decade but then fell back slightly during the Trump administration. Now Chinese buyers are apparently surging back in.”
I guess that since they created a huge real estate bubble in China (think Evergrande et al.) they want to do the same here.
I read a recent article describing how the Chinese are purchasing a lot of residential property in the US.
“In addition to their farmland holdings, China owns more residential real estate than any other foreign country, which has a significant impact on the real estate market on the West Coast. Sound far-fetched? According to Market Watch, “Chinese buyers accounted for roughly 25 percent of total foreign investment in U.S. residential real estate.” Canada was far behind at a relatively scant 9 percent.”
Another recent blurb from CNBC:
“Chinese buyers are particularly important to watch, as China had taken over as the lead demand for U.S. housing in the early part of the last decade but then fell back slightly during the Trump administration. Now Chinese buyers are apparently surging back in.”
I guess that since they created a huge real estate bubble in China (think Evergrande et al.) they want to do the same here.
The Chinese have been a big factor in markets like Seattle Vancouver and San Francisco for a while . I wonder how much of a factor they are here in Raleigh and if they are increasing ?
The Chinese have been a big factor in markets like Seattle Vancouver and San Francisco for a while . I wonder how much of a factor they are here in Raleigh and if they are increasing ?
We have other foreign buyers.
Wake County alone, starting in 2019:
The Chinese have been a big factor in markets like Seattle Vancouver and San Francisco for a while . I wonder how much of a factor they are here in Raleigh and if they are increasing ?
I've not seen stats on that, but since this housing market is rated so highly, and is considered dirt cheap compared to the other areas that you mentioned, it seems likely that a lot of Chinese money will flow here. There are so many ways for investors to hide their true identity, so it may be hard to trace.
The Chinese real estate market is broken; for many years the government encouraged over building (in order to juice up their GDP growth stats) which has resulted in a massive bubble, and no clearly announced policy to deal with it.
The Chinese hated Trump, so US purchasing volume dropped at that time. The Chinese still feel that this is a great market to invest in all types of real estate. If we wind up in a "hot war" over Taiwan, things could turn ugly in so many ways.
I read a recent article describing how the Chinese are purchasing a lot of residential property in the US.
“In addition to their farmland holdings, China owns more residential real estate than any other foreign country, which has a significant impact on the real estate market on the West Coast. Sound far-fetched? According to Market Watch, “Chinese buyers accounted for roughly 25 percent of total foreign investment in U.S. residential real estate.” Canada was far behind at a relatively scant 9 percent.”
Another recent blurb from CNBC:
“Chinese buyers are particularly important to watch, as China had taken over as the lead demand for U.S. housing in the early part of the last decade but then fell back slightly during the Trump administration. Now Chinese buyers are apparently surging back in.”
I guess that since they created a huge real estate bubble in China (think Evergrande et al.) they want to do the same here.
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