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This morning I heard someone talking about the theory that "millennials are not buying; all the buyers are really Chinese investors."
It hit me that even if this was true, those investors are still expecting to resell (or rent) to somebody. And at a higher price. Seems to me that if there really is this huge wave of foreign investment in residential real estate, a lot of it indicates those investors have confidence in US millennials buying. If not now, then in the coming years. Otherwise they'd be investing in residential real estate in other countries.
This is happening all along the coasts. Go over to the CA or Seattle local boards and you'll see a lot of complaints about foreign investors buying property and either leaving it vacant or renting the properties. If more real estate is built, the more they buy. This is a major problem as it further distorts the market and passed further upward pressure on an already tight local demand by further constricting supply. IMO, municipalities need to take measures to prevent this foreign money parking.
Personally, unless I was top 5%er, no less than a top 10%er, I'd leave these areas. There are plenty of areas in the country where average people can do much better.
This is happening all along the coasts. Go over to the CA or Seattle local boards and you'll see a lot of complaints about foreign investors buying property and either leaving it vacant or renting the properties. If more real estate is built, the more they buy. This is a major problem as it further distorts the market and passed further upward pressure on an already tight local demand by further constricting supply. IMO, municipalities need to take measures to prevent this foreign money parking.
Personally, unless I was top 5%er, no less than a top 10%er, I'd leave these areas. There are plenty of areas in the country where average people can do much better.
It does have an effect on prices for local homeowners .
I know there are several countries that don't allow foreigners to buy property.
If one already owns property though you might be less adverse to foreign investors buying in the area since this brings up prices and adds to equity .
I know there was a Visa program where if one invested in real estate they would get a visa
I know there was a Visa program where if one invested in real estate they would get a visa
Interesting. I had no idea, not sure if I like the idea or not. Off the top of my head I can think of some pros but also some cons for having a program like that.
Interesting. I had no idea, not sure if I like the idea or not. Off the top of my head I can think of some pros but also some cons for having a program like that.
Yes also there are VISAs for buying and running businesses .
I was working in Miami a couple years back and many businesses were being bought by Venezuelans that wanted out of Venezuela .
Turns out that was a smart move especially now .
Since the situation in Venezuela has gotten worse .
This morning I heard someone talking about the theory that "millennials are not buying; all the buyers are really Chinese investors."
It hit me that even if this was true, those investors are still expecting to resell (or rent) to somebody. And at a higher price. Seems to me that if there really is this huge wave of foreign investment in residential real estate, a lot of it indicates those investors have confidence in US millennials buying. If not now, then in the coming years. Otherwise they'd be investing in residential real estate in other countries.
I don't think is a primary reason for all of the foreign investors. In fact, from what I've read, for some of the foreign money influx, it's less of an "investment" and more of a place to park money more easily as a part of money laundering. Whether or not it delivers big returns for those "investors" in the future is of secondary (or tertiary etc) concern. And that is something to be concerned about in those coastal markets where this is a more concentrated occurrence.
I don't think is a primary reason for all of the foreign investors. In fact, from what I've read, for some of the foreign money influx, it's less of an "investment" and more of a place to park money more easily as a part of money laundering. Whether or not it delivers big returns for those "investors" in the future is of secondary (or tertiary etc) concern. And that is something to be concerned about in those coastal markets where this is a more concentrated occurrence.
Yes many countries around the world have a habit of seizing money.
I knew of a guy that bought a property in NYC just to park the money and get it out of the Middle East .
It was a duplex , the cash flow didn't make much sense but he viewed NYC /US as being more stable .
Of course this causes more and more demand and makes it harder for locals to afford to buy something .
I'm not quite sure I'd want to outlaw foreign investment though .
I'm not quite sure I'd want to outlaw foreign investment though .
I agree -- however, considering the fact that this has happened at a much greater pace starting in something like 2010, it seems like regulations may not have caught up with the surge of foreign "investments" quite yet. In other words, perhaps there are some loopholes to sew up to keep our own markets a little more stable in relation to all of this activity.
I do think that a swift and immediate removal of this capital would have an absolute drastic change in a few markets, and perhaps a ripple effect in others.
Another interesting perspective on Millennials. For this group, it just might be all about finding a place for your dogs.
According to a survey by Harris Poll, 33 percent of millennial home buyers’ decision to buy a home was driven chiefly by a wish to have a yard for their dog. In comparison, 25 percent cited marriage as their top motivator for buying a home, and 19% cited children.
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