Western Cities Want to Slow Flood of Chinese Home Buying. Nothing Works.

What would be the potential drop in home prices (let's say in Irvine) if the Chinese stops buying?  30%; 50%??
 
AA said:
What would be the potential drop in home prices (let's say in Irvine) if the Chinese stops buying?  30%; 50%??

Then Chinese American will buy. No dropping any time soon.
 
Orange County should use this as a good opportunity and kill two birds with one stone. Tax FCB RE investment and earmark the money to low income housing and homeless issues.
 
Mety said:
AA said:
What would be the potential drop in home prices (let's say in Irvine) if the Chinese stops buying?  30%; 50%??

Then Chinese American will buy. No dropping any time soon.

Excellent!! Hope you are right.
 
WTTCHMN said:
Western Cities Want to Slow Flood of Chinese Home Buying.

Nothing Works.

Governments from Vancouver to Sydney to Toronto are using taxes and other restrictions to tackle real-estate bubbles.
https://www.wsj.com/articles/wester...-chinese-home-buying-nothing-works-1528294587

Toronto, Vancouver home sales slump as buyers and sellers wait on sidelines

Sales have tumbled in Canada?s two most expensive housing markets as buyers and sellers sit on the sidelines waiting to see whether each region is heading toward stability or continuing volatility.

https://www.google.com/amp/s/www.th...me-sales-slump-as-buyers-and-sellers-wait-on/

 
eyephone said:
WTTCHMN said:
Western Cities Want to Slow Flood of Chinese Home Buying.

Nothing Works.

Governments from Vancouver to Sydney to Toronto are using taxes and other restrictions to tackle real-estate bubbles.
https://www.wsj.com/articles/wester...-chinese-home-buying-nothing-works-1528294587

Toronto, Vancouver home sales slump as buyers and sellers wait on sidelines

Sales have tumbled in Canada?s two most expensive housing markets as buyers and sellers sit on the sidelines waiting to see whether each region is heading toward stability or continuing volatility.

https://www.google.com/amp/s/www.th...me-sales-slump-as-buyers-and-sellers-wait-on/

I feel like many are on the waiting on the sideline here in the US as well, especially buyers.
 
Is this something we should do? I'm not convinced. Interfering in markets works only in the very rarest of circumstances. Fear of invoking the Law of Unintended Consequences should outweigh this rush toward solving any housing issue through politically expedient measures. Once again, sorry dawg, it's a no from me on this.


That said about the only way to slow foreign buyers is for reciprocal government reporting of any transfer of funds between US and Foreign banks greater than $10,000, and less than $2m - business or personal. Some behaviors will change - opening accounts in US based banks rather than local banks to skirt some of the reporting - for example. That'll stop them rooskie olegarkies from buying up all the best condo units in Boca.

A second method would be adding a 2% surcharge to all cash purchases - you know.... for affordable housing! That's something Gavin might fly up the flagpole since he's going to sell himself as a champion of low income housing. Yes, if Granny sells her igloo up in Saskatoon and wants to pay all cash for her condo in Palm Desert, it might cost an additional $2k to do so.

Neither of these things will ever happen. The NAR, Banks, AARP, and Homebuilders will turn their campaign contributions off should either of these be even whispered about. Remember, the only people politicians listen to have first names of either George, Abraham, Alexander, Ulysses, or Benjamin.

My .02c
 
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