fumbling_IHB
New member
<a href="http://www.latimes.com/business/la-fi-chinahomes7-2008dec07,0,6321372.story">http://www.latimes.com/business/la-fi-chinahomes7-2008dec07,0,6321372.story</a>
Foreign Competition for Irvine Real Estate
- Thread starter jpx7_IHB
- Start date
Anonymous_IHB
New member
In Shift, Chinese Are Spending More Money Overseas
<A href="http://www.nytimes.com/2009/02/03/business/worldbusiness/03yuan.html?pagewanted=1&_r=1&hp;">http://www.nytimes.com/2009/02/03/business/worldbusiness/03yuan.html?pagewanted=1&_r=1&hp;</A>
<A href="http://www.nytimes.com/2009/02/03/business/worldbusiness/03yuan.html?pagewanted=1&_r=1&hp;">http://www.nytimes.com/2009/02/03/business/worldbusiness/03yuan.html?pagewanted=1&_r=1&hp;</A>
IACRenter_IHB
New member
[quote author="Anonymous" date=1233649347]In Shift, Chinese Are Spending More Money Overseas
<A href="http://www.nytimes.com/2009/02/03/business/worldbusiness/03yuan.html?pagewanted=1&_r=1&hp;">http://www.nytimes.com/2009/02/03/business/worldbusiness/03yuan.html?pagewanted=1&_r=1&hp;</A></blockquote>
Interesting article. So I guess there are plane loads of FCB from China scooping up RE in SoCal. The article said they have tours of the LA area--that probably includes OC as well. Does anyone know of any of these agents that lead the tours? I wonder which areas they target--Inland Empire where prices have fallen tremendously or Asian enclaves such as Monterey Park or high end coastal areas?
<A href="http://www.nytimes.com/2009/02/03/business/worldbusiness/03yuan.html?pagewanted=1&_r=1&hp;">http://www.nytimes.com/2009/02/03/business/worldbusiness/03yuan.html?pagewanted=1&_r=1&hp;</A></blockquote>
Interesting article. So I guess there are plane loads of FCB from China scooping up RE in SoCal. The article said they have tours of the LA area--that probably includes OC as well. Does anyone know of any of these agents that lead the tours? I wonder which areas they target--Inland Empire where prices have fallen tremendously or Asian enclaves such as Monterey Park or high end coastal areas?
emoh88_IHB
New member
Certainly not Riverside. The Chinese RE tourists here in Denver are focusing on Cherry Creek, Greenwood Village and downtown lofts. It seems they do have a bit of money.
bkshopr_IHB
New member
[quote author="emoh88" date=1233737968]Certainly not Riverside. The Chinese RE tourists here in Denver are focusing on Cherry Creek, Greenwood Village and downtown lofts. It seems they do have a bit of money.</blockquote>
What is attracting the Chinese to Denver? The Chinatown there is too small and there is not enough of critical mass? Chinese investors are not interested in Historic properties. They are interested in new homes with proximity to good universities so their offsprings could occupy the properties while going to school.
Cherry Creek is a historic neighborhood in Denver
<img src="http://www.designlens.com/projects/2004/05/8/4.jpg" alt="" />
<img src="http://www.designlens.com/projects/2004/05/8/6.jpg" alt="" />
<img src="http://www.designlens.com/projects/2004/05/8/16.jpg" alt="" />
<img src="http://www.designlens.com/projects/2004/05/8/20.jpg" alt="" />
<img src="http://www.designlens.com/projects/2004/05/8/37.jpg" alt="" />
<img src="http://www.designlens.com/projects/2004/05/8/40.jpg" alt="" />
<img src="http://www.designlens.com/projects/2004/05/8/44.jpg" alt="" />
<img src="http://www.designlens.com/projects/2004/05/8/46.jpg" alt="" />
<img src="http://www.designlens.com/projects/2004/05/8/59.jpg" alt="" />
<img src="http://www.designlens.com/projects/2004/05/8/67.jpg" alt="" />
Downtown Lofts
<img src="http://www.designlens.com/projects/2003/11/6/2.jpg" alt="" />
<img src="http://www.designlens.com/projects/2003/11/6/14.jpg" alt="" />
<img src="http://www.designlens.com/projects/2003/11/6/15.jpg" alt="" />
<img src="http://www.designlens.com/projects/2003/11/6/29.jpg" alt="" />
<img src="http://www.designlens.com/projects/2003/11/6/46.jpg" alt="" />
What is attracting the Chinese to Denver? The Chinatown there is too small and there is not enough of critical mass? Chinese investors are not interested in Historic properties. They are interested in new homes with proximity to good universities so their offsprings could occupy the properties while going to school.
Cherry Creek is a historic neighborhood in Denver
<img src="http://www.designlens.com/projects/2004/05/8/4.jpg" alt="" />
<img src="http://www.designlens.com/projects/2004/05/8/6.jpg" alt="" />
<img src="http://www.designlens.com/projects/2004/05/8/16.jpg" alt="" />
<img src="http://www.designlens.com/projects/2004/05/8/20.jpg" alt="" />
<img src="http://www.designlens.com/projects/2004/05/8/37.jpg" alt="" />
<img src="http://www.designlens.com/projects/2004/05/8/40.jpg" alt="" />
<img src="http://www.designlens.com/projects/2004/05/8/44.jpg" alt="" />
<img src="http://www.designlens.com/projects/2004/05/8/46.jpg" alt="" />
<img src="http://www.designlens.com/projects/2004/05/8/59.jpg" alt="" />
<img src="http://www.designlens.com/projects/2004/05/8/67.jpg" alt="" />
Downtown Lofts
<img src="http://www.designlens.com/projects/2003/11/6/2.jpg" alt="" />
<img src="http://www.designlens.com/projects/2003/11/6/14.jpg" alt="" />
<img src="http://www.designlens.com/projects/2003/11/6/15.jpg" alt="" />
<img src="http://www.designlens.com/projects/2003/11/6/29.jpg" alt="" />
<img src="http://www.designlens.com/projects/2003/11/6/46.jpg" alt="" />
Anonymous_IHB
New member
bishopkr - depends on what sort of investor I guess. I could see someone buying their kid a place to go to school from. However, per the newsarticle with the larger capital outflow - that's likely another phenomenon. I mean, think about it, if you were a very, very wealthy Chinese investor that usually lent their money out in China for various business/real estate ventures for good return, but now with the downturn those opportunities were gone, you'd be looking overseas for opportunities. And those opportunities would be all about preserving and growing capital, not about sending your kids to school - it'd be a vast sum of money to invest, far more than one could spend on one's kids.
bkshopr_IHB
New member
[quote author="Anonymous" date=1233798998]bishopkr - depends on what sort of investor I guess. I could see someone buying their kid a place to go to school from. However, per the newsarticle with the larger capital outflow - that's likely another phenomenon. I mean, think about it, if you were a very, very wealthy Chinese investor that usually lent their money out in China for various business/real estate ventures for good return, but now with the downturn those opportunities were gone, you'd be looking overseas for opportunities. And those opportunities would be all about preserving and growing capital, not about sending your kids to school - it'd be a vast sum of money to invest, far more than one could spend on one's kids.</blockquote>
The Chinese investor traveling abroad with a local agent as their tour guide are not the the ultra rich. The ultra rich would have been well connected with the local developers for the properties that potentailly have a higher performance in return. The ones joining the tours of local San Gabriel agents are the mom and pops village operation that made their wealth but primarily still uneducated with global finances. They are the group who likely take detour trips to Cabazon, Vegas, and South Coast Plaza. Their biggest fear is not being able to keep an eye on the property and finding someone trust worthy will be difficult. The scenario of having relatives to occupying the property makes a lot of sense.
The Chinese investor traveling abroad with a local agent as their tour guide are not the the ultra rich. The ultra rich would have been well connected with the local developers for the properties that potentailly have a higher performance in return. The ones joining the tours of local San Gabriel agents are the mom and pops village operation that made their wealth but primarily still uneducated with global finances. They are the group who likely take detour trips to Cabazon, Vegas, and South Coast Plaza. Their biggest fear is not being able to keep an eye on the property and finding someone trust worthy will be difficult. The scenario of having relatives to occupying the property makes a lot of sense.
Anonymous_IHB
New member
[quote author="bkshopr" date=1233800681][quote author="Anonymous" date=1233798998]bishopkr - depends on what sort of investor I guess. I could see someone buying their kid a place to go to school from. However, per the newsarticle with the larger capital outflow - that's likely another phenomenon. I mean, think about it, if you were a very, very wealthy Chinese investor that usually lent their money out in China for various business/real estate ventures for good return, but now with the downturn those opportunities were gone, you'd be looking overseas for opportunities. And those opportunities would be all about preserving and growing capital, not about sending your kids to school - it'd be a vast sum of money to invest, far more than one could spend on one's kids.</blockquote>
The Chinese investor traveling abroad with a local agent as their tour guide are not the the ultra rich. The ultra rich would have been well connected with the local developers for the properties that potentailly have a higher performance in return. The ones joining the tours of local San Gabriel agents are the mom and pops village operation that made their wealth but primarily still uneducated with global finances. They are the group who likely take detour trips to Cabazon, Vegas, and South Coast Plaza. Their biggest fear is not being able to keep an eye on the property and finding someone trust worthy will be difficult. The scenario of having relatives to occupying the property makes a lot of sense.</blockquote>
Makes sense.
The Chinese investor traveling abroad with a local agent as their tour guide are not the the ultra rich. The ultra rich would have been well connected with the local developers for the properties that potentailly have a higher performance in return. The ones joining the tours of local San Gabriel agents are the mom and pops village operation that made their wealth but primarily still uneducated with global finances. They are the group who likely take detour trips to Cabazon, Vegas, and South Coast Plaza. Their biggest fear is not being able to keep an eye on the property and finding someone trust worthy will be difficult. The scenario of having relatives to occupying the property makes a lot of sense.</blockquote>
Makes sense.
emoh88_IHB
New member
I was surprised...maybe the 'new' Chinese style is 'All hat and no cattle'. Supposedly these investors were touring Denver on their way to London and Paris. In the old days most rich Chinese were extremely humble and kept a closed mouth.
PANDA_IHB
New member
I had an interesting talk with one my good friends the other day. He visited his aunt last week who lives in a 4000 square SFR in Northwood Pointe. It was interesting to find that his uncle makes only $70,000 gross income in Irvine and lives in $1.6M dollar home. From his business in Korea and collecting rent from commerical real estate in prime locations of Seoul brings him overseas income of more than $300,000 a year. I did ask him how his uncle got so wealthy and he told me that they bought real estate in KangNam (one of the most expensive real estate in Seoul) back in 1998 during the Asian Financial Crisis. Real Estate prices have increased 300% since then in Seoul. To sell off one of these real estate and buy a home in Northwood Points 100% cash is not too difficult. My friend's uncle told him that there are many Foreign Koreans who live like the way they do in Northwood Pointe, and it is not at all uncommon. Their kids went to high school at Northwood High and is now just entering college age and aren't spoiled at all. They are really good kids with strong values and serving in communites to help the poor. I thought that information may be interesting to all of your about one profile of an FCB.