New US Homes Going Like Hotcakes to Chinese Buyers
|December 8, 2013||Posted by Staff under Economic Principles|
A lot of Asians are buying as an investment, but their kids are going to school here, so kids live in the home. They are looking at it more as an investment in education also.
While American secondary schools and universities are a big draw for the majority of Chinese buyers in California, Chinese are also concerned about China’s political instability, inflation, even pollution. They are paying all-cash for real estate in California, using it as a safe-haven for their wealth.
More than 20,000 attended an opening in Irvine CA, according to developers. The vast majority of lookers were Asian. Hoping to cash in on this new wave of investors, the builders are incorporating multigenerational floor plans and even Feng Shui designs.
The homes range from the mid-$700,000s to well over $1 million.
While no one would say specifically why certain families were shying away from the media, some alluded to the fact that many of the buyers don’t want any questions about where the cash is coming from. Some are buying multiple homes as investments, while others are moving their families to the U.S., intending to stay at least until their children graduate from college.
Ed. Notes: So Americans spend their money on cheap Chinese imports then the insider Chinese spend that money on pricey American homes-plus-home-sites. Americans think they’re saving money buying cheaper goods but actually they’re pushing up land values. Land has a way of always absorbing economic advantages.
Of course pricier land would not matter to buyers and citizens if they also had to pay Land Dues or a land tax or land-use fee or deed fee. Having to pay such a charge would make a bad investment for speculators, so they’d shy away and the price of land and homes would not inflate.
Further, such a charge would suck high land values into the public treasury. Ideally the government would spend the funds in ways that benefit society better than now how banks and other lenders spend the funds. Government could cut its counterproductive taxes, or subsidize a program that a majority might want such as socialized medicine, or pay citizens a dividend, or actually do all three, the value of sites and resources being so sky high.