We changed blog hosts yesterday and lost a post and a couple of comments. But we should be 100% now! There may be some disruption on the mobile app but we are working on it.
Will Chinese investors – in turmoil at home – keep our coastal real estate markets afloat? Hat tip to Susie for sending this in from cnbc:
http://www.cnbc.com/2015/07/09/will-chinese-buyers-flee-or-flood-us-housing.html?
Turmoil in the Chinese stock market could have a quick and direct effect on U.S. housing. From newly built homes in Irvine, California, to Miami condos to Manhattan luxury towers, Chinese money has been flowing freely. The question now is, will trouble in the Chinese stock market translate into more or less cash coming into American neighborhoods?
“My conclusion on China is that those who are buying U.S. real estate are doing it with a very long-term view—to diversify their assets, provide a safe haven in case something happens at home,” said John Burns of California-based John Burns Real Estate Consulting. “I don’t think a 30 percent stock correction after a relatively recent 150 percent boom changes much of that. If you told me the economy was going negative, their shadow banking system was exploding, or the government clamped down on foreign investment, then I would be concerned.”
I read an article somewhere yesterday that said the shadow banking “system” was in fact collapsing. The bulk of the speculators, oops I meant investors in the Chinese market are individuals, not institutions. Many are on margin, and are selling apartments and other assets at steep discounts to pay the margin loans.
The real answer lies in calling the agents you know that cater to the overseas market and asking them the right questions. My guess is the phones and the e-mail servers are pretty quiet right now.
Here’s one article:
http://finance.yahoo.com/news/chinas-underground-banks-spread-pain-defaults-rise-065521617.html
Thanks AI!
I’ve read several articles that indicate “cheating” is part of Chinese culture and it’s done on purpose, so that people are more sharp and aware and less likely to be taken as fools.
So, for the folks that “invested” their money with these shadow banks, they were trying to cheat the system and got taken by bigger fish. They’ll never see a penny come back.
Caveat emptor!
http://blog.chinadaily.com.cn/blog-787069-13822.html