Chinese Cash Floods U.S. Real Estate Market

The builder won't rise price of FCBs, cuz it is guilty. You can't  discriminate against Chinese.
the definition of discrimination in economic is : sell same product with different price again different buyers.
 
Lanelgn said:
The builder won't rise price of FCBs, cuz it is guilty. You can't  discriminate against Chinese.
the definition of discrimination in economic is : sell same product with different price again different buyers.
Click to expand...

What are you talking about? "The builder won't rise price of FCBs, cuz it is guilty. You can't  discriminate against Chinese."
This is the US, the price is dictated by supply and demand, comps.
 
Two sides to the issue. FCBs are good thing for existing homeowners in Irvine since it boosts everyone's home prices. Not so much for people looking to buy. But then, back in 2004-06, there were domestic buyers bidding up the prices. You can't blame FCBs. You can blame BUYERS in general that bid up the prices and price out many house hunters. Such is the life, everywhere with everything.

The FCBs that buy and immediately rent out the place do somewhat negatively impact the local economy over period of time. Over years, as opposed to owner-occupied home, that investment property owner won't be spending as much on the upkeep/upgrading of the home, and neither will renter.
 
It's not FCB's per-se, nor is it locally grown CB's, it's the money laundering exemption that NAR carved out as financial reforms were being put into place.  Note that these "voluntary guidelines" for realtors however are "must do, or perish" for mortgage companies and banks:

http://www.realtor.org/articles/anti-money-laundering-guidelines-for-real-estate-professionals

If realtor's licenses were put in at risk for not reporting money laundering, most of the CB sales would vanish. It's a pretty good bet you can count the number of SAR's (Suspicious Activity Reports) filed by realtors on one hand.

There are some groups trying to roll this behavior back, but it ain't gonna happen:

http://www.nytimes.com/2015/03/11/business/treasury-urged-to-scrutinize-foreign-real-estate-buyers-for-money-laundering-risk.html?_r=0

My .02c
 
That has been going on for quite some time now and it is only getting worse for many reasons. There are still ways to get money out and probably will remain so but it's getting more and more risky as time goes on.
 
Not sure how many OC homes were financed by HSBC, but certainly an interesting turn of events.

http://www.reuters.com/article/us-hsbc-china-mortgages-idUSKCN0V61DT

U.S. based banks are governed by Fair Lending laws which would never allow this kind of denial of credit to this level of specificity. Does make one wonder where the command to turn off the taps came from.

(original link should be fixed)

My .02c

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