King County median home price up 15% (Seattle: apartment, renting, car insurance)

[SouthSeasLifestyler]

I seriously doubt that Chinese people would buy a normal house that normal people would buy to live in here (seriously, the yard work ...) Probably condos and very high-end properties if you are the type to buy for investment elsewhere. For another perspective, a lot of people where we are from downunder complain that rich Americans are buying up all our waterfront properties!!! I think it is a matter of perspective. RICH people of all nationalities are buying whatever they can, and it is hard for the locals who are priced out and can see it. But the truth is, rich people price out everyone.

SSLifestyler

[jm31828]

Originally Posted by SouthSeasLifestyler

I seriously doubt that Chinese people would buy a normal house that normal people would buy to live in here (seriously, the yard work ...) Probably condos and very high-end properties if you are the type to buy for investment elsewhere. For another perspective, a lot of people where we are from downunder complain that rich Americans are buying up all our waterfront properties!!! I think it is a matter of perspective. RICH people of all nationalities are buying whatever they can, and it is hard for the locals who are priced out and can see it. But the truth is, rich people price out everyone.

SSLifestyler

Very true! And someone mentioned these Chinese spending money locally, buying cars, sending their kids to school, etc. That is not necessarily true- a lot of these investors still live back in China- they are not residents here, so they buy the properties to hold onto them and sell them later for a profit, they never actually live here. So there is no real benefit to us as you would have if they were truly moving here putting their money into the local economy.

[civic94]

Originally Posted by SouthSeasLifestyler

I seriously doubt that Chinese people would buy a normal house that normal people would buy to live in here (seriously, the yard work ...) Probably condos and very high-end properties if you are the type to buy for investment elsewhere. For another perspective, a lot of people where we are from downunder complain that rich Americans are buying up all our waterfront properties!!! I think it is a matter of perspective. RICH people of all nationalities are buying whatever they can, and it is hard for the locals who are priced out and can see it. But the truth is, rich people price out everyone.

SSLifestyler

have you seen Vancouver? some Chinese will buy any home with a yard, tear it down, and build a mansion with no yards just to get every sq. foot out of the lot.

[ctr88]

Also Seattle real estate (both rent and house prices) is really pretty fairly valued when you look at it compared to other coastal cities in the U.S. that have the premium type white collar and knowledge based jobs (Bay Area, LA, OC, SD, DC, Boston, NYC). Seattle is actually cheaper then Boston, NYC, Bay Area, OC, LA, DC and probably about on par with SD. The people that think Seattle is expensive either moved here from a cheap part of the U.S. like the Midwest/South or are from Seattle and still nostalgically remember prices 20 yrs ago. People who move here from say the Bay Area, Boston, NYC see Seattle as a pretty good value.

With that said I still think the Fed artificially holding rates down is inflating RE values everywhere.

[tom331]

Originally Posted by jm31828

Very true! And someone mentioned these Chinese spending money locally, buying cars, sending their kids to school, etc. That is not necessarily true- a lot of these investors still live back in China- they are not residents here, so they buy the properties to hold onto them and sell them later for a profit, they never actually live here. So there is no real benefit to us as you would have if they were truly moving here putting their money into the local economy.

But, some one owning a property a US has to pay property tax. The local entities such as schools and cities are actually benefited from someone paying tax without using the services.

[flyingsaucermom]

Originally Posted by tom331

But, some one owning a property a US has to pay property tax. The local entities such as schools and cities are actually benefited from someone paying tax without using the services.

Yes, but that's the crudest form of civic participation. They aren't really invested in the development of the community, the city or the schools when they aren't using them for their own needs. They are more or less just thinking of it as financial investment.

[Ira500]

Originally Posted by tom331

But, some one owning a property a US has to pay property tax. The local entities such as schools and cities are actually benefited from someone paying tax without using the services.

But I think very few people, Chinese or otherwise, are buying homes as an investment and leaving them empty.

[flyingsaucermom]

Originally Posted by Ira500

But I think very few people, Chinese or otherwise, are buying homes as an investment and leaving them empty.

Well, that was the strange thing I had heard on the NPR segment I listened to a few months back (that I can't find!). It made it sound that they aren't living in them. Maybe they have the money, but they don't have the documents to immigrate???

[civic94]

Originally Posted by flyingsaucermom

Well, that was the strange thing I had heard on the NPR segment I listened to a few months back (that I can't find!). It made it sound that they aren't living in them. Maybe they have the money, but they don't have the documents to immigrate???

as long as they can fork up 500,000 or more for a property they can legally come here and their kids too (if under 18 from what i can remember). they wont get green cards or citizenship, but i think they can apply. but heres the kicker, if the couple haves a kid, the kid is automatically a us citizen, and once the kid is 21, they can sponsor their parents to come to america, and then sponsor their older sibling. so in the end, the whole family can be in america legally.

some Chinese see it as a good deal, i mean, spend 500,000 on a house here, have their kids enjoy american schools, and if they dont like it they can still sell it for 500,000.

[IDontKnowWhyIDidIt]

Originally Posted by ctr88

Also Seattle real estate (both rent and house prices) is really pretty fairly valued when you look at it compared to other coastal cities in the U.S. that have the premium type white collar and knowledge based jobs (Bay Area, LA, OC, SD, DC, Boston, NYC). Seattle is actually cheaper then Boston, NYC, Bay Area, OC, LA, DC and probably about on par with SD. The people that think Seattle is expensive either moved here from a cheap part of the U.S. like the Midwest/South or are from Seattle and still nostalgically remember prices 20 yrs ago. People who move here from say the Bay Area, Boston, NYC see Seattle as a pretty good value.

With that said I still think the Fed artificially holding rates down is inflating RE values everywhere.

I agree with this assessment. There are lot of rich people in Seattle now mosty from the booming tech industry. I don't work for any of these tech companies but I work for people who work for these companies. These are young people 25-30 yrs making 200K+ salaries. One couple I train get a lot of bonus in stock and the stocks are soaring...If I remember the number of stocks they quoted the are getting in 2013 and the price of the stocks right now, they can buy a 500K the house without any financing. Welcome to the new rich Seattle. It is the next bay area.

Moreover if people think increase in interest rate will curb housing, I am not sure that will happen. The reason is Rent is expensive. if you dont buy, you rent, but there are way too many people looking for rent houses and prices are rising.