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  • August 30, 2010 at 12:38 PM #17887
    andymajumder
    Participant

    My general observation in the past few months has been that most or at least quite a few buyers in in areas such as Carmel Valley, Scripps ranch, Penasquitos are of asian origin (chinese, indian etc.) This could be because a lot of the tech and biotech companies in the sorrento valley region have large asian population. But, generally, based on discussion I have had with folks at work, asians seem to be more bullish in the long run about housing market and american economy in general. I have been wondering why since most of these folks seem to be quite well aware of the risks of owning a home here in the short term, here’s why I think asian immigrants maybe more willing to risk buying a house now.
    Being from India myself, I too find it difficult to be bearish about housing in the long run, though I fully understand that the dynamics, economy and the population size is completely different here compared to asian cities. For e.g. in Bombay, India (where I am originally from) home prices have gone up from somewhere between 5x to 7x times in the past 20 years. Its true the growth rate in India has been phenomenal in the past two decades compared to any place in the western world, there’s a large and growing population and outsourcing has certainly helped.
    But, the impact of monetization of debt should not be underestimated. Inflation has always been a problem and now inflation in India is about 13% and is a huge problem. Cash has always been considered dead money and most people dread having a lot of cash other than emergency expenses. The purchasing power of the rupee decreases every month (in fact in India the purchasing power of the dollar has been decreasing rapidly too since the exchange rate now is essentially the same as in 2004). In the early 90s a 100 rupee would be enough for a few weeks of grocery (and mind you food was expensive relative to income even back then) for a family of four and now you may manage buy some snacks for 100 rupees. So most folks from India have this idea ingrained within them that hard assets such as a house are always a good investment and based on my discussion with other asian fiends(some folks from Shanghai and Taiwan) they too seem to have had similar experience while growing up.

    So, I think the root cause why a lot of asian immigrants are still more bullish on housing is they have grown up in high inflationary environment where they have seen their curreny get devalued slowly but surely. Also, most of us grew up in two bedroom apartments and the idea of having a house with a backyard for our kids is a dream come true.

    August 30, 2010 at 12:59 PM #597395
    briansd1
    Guest

    Yes.

    I know plenty of Asians. Asians are more bullish on housing because where they come from, houses are very expensive on price/income ratio.

    I would say that immigrants in general are used to high housing prices. A house in Guatemala can easily cost $200,000. But people there earn $200/month.

    A typical SFR in USA would be unaffordable to most immigrants in their own countries. So the fact that they can borrow the money to purchase houses here makes it a good deal.

    In developing countries, houses are passed down generations to generations. Property taxes are non-existent so real estate is a good store of value.

    It’s also a generational thing. The period of peace of the last few decades saw enormous house price increases in the developing world. 20 to 30 years ago, a house in Ho Chi Minh City could be had for $10,000. Now that same house might be $300,000 USD, or even $1 million, if in the right location. Same goes for China and India.

    One of my Chinese friend told me that back in the 1980s if you were a Chinese-American coming back to China, you’d be a celebrity. Now, nobody pays any attention. That’s how fast things have changed.

    Immigrants also live with extended family which makes it easier to share the cost of housing burden.

    August 30, 2010 at 12:59 PM #597490
    briansd1
    Guest

    Yes.

    I know plenty of Asians. Asians are more bullish on housing because where they come from, houses are very expensive on price/income ratio.

    I would say that immigrants in general are used to high housing prices. A house in Guatemala can easily cost $200,000. But people there earn $200/month.

    A typical SFR in USA would be unaffordable to most immigrants in their own countries. So the fact that they can borrow the money to purchase houses here makes it a good deal.

    In developing countries, houses are passed down generations to generations. Property taxes are non-existent so real estate is a good store of value.

    It’s also a generational thing. The period of peace of the last few decades saw enormous house price increases in the developing world. 20 to 30 years ago, a house in Ho Chi Minh City could be had for $10,000. Now that same house might be $300,000 USD, or even $1 million, if in the right location. Same goes for China and India.

    One of my Chinese friend told me that back in the 1980s if you were a Chinese-American coming back to China, you’d be a celebrity. Now, nobody pays any attention. That’s how fast things have changed.

    Immigrants also live with extended family which makes it easier to share the cost of housing burden.

    August 30, 2010 at 12:59 PM #598035
    briansd1
    Guest

    Yes.

    I know plenty of Asians. Asians are more bullish on housing because where they come from, houses are very expensive on price/income ratio.

    I would say that immigrants in general are used to high housing prices. A house in Guatemala can easily cost $200,000. But people there earn $200/month.

    A typical SFR in USA would be unaffordable to most immigrants in their own countries. So the fact that they can borrow the money to purchase houses here makes it a good deal.

    In developing countries, houses are passed down generations to generations. Property taxes are non-existent so real estate is a good store of value.

    It’s also a generational thing. The period of peace of the last few decades saw enormous house price increases in the developing world. 20 to 30 years ago, a house in Ho Chi Minh City could be had for $10,000. Now that same house might be $300,000 USD, or even $1 million, if in the right location. Same goes for China and India.

    One of my Chinese friend told me that back in the 1980s if you were a Chinese-American coming back to China, you’d be a celebrity. Now, nobody pays any attention. That’s how fast things have changed.

    Immigrants also live with extended family which makes it easier to share the cost of housing burden.

    August 30, 2010 at 12:59 PM #598144
    briansd1
    Guest

    Yes.

    I know plenty of Asians. Asians are more bullish on housing because where they come from, houses are very expensive on price/income ratio.

    I would say that immigrants in general are used to high housing prices. A house in Guatemala can easily cost $200,000. But people there earn $200/month.

    A typical SFR in USA would be unaffordable to most immigrants in their own countries. So the fact that they can borrow the money to purchase houses here makes it a good deal.

    In developing countries, houses are passed down generations to generations. Property taxes are non-existent so real estate is a good store of value.

    It’s also a generational thing. The period of peace of the last few decades saw enormous house price increases in the developing world. 20 to 30 years ago, a house in Ho Chi Minh City could be had for $10,000. Now that same house might be $300,000 USD, or even $1 million, if in the right location. Same goes for China and India.

    One of my Chinese friend told me that back in the 1980s if you were a Chinese-American coming back to China, you’d be a celebrity. Now, nobody pays any attention. That’s how fast things have changed.

    Immigrants also live with extended family which makes it easier to share the cost of housing burden.

    August 30, 2010 at 12:59 PM #598463
    briansd1
    Guest

    Yes.

    I know plenty of Asians. Asians are more bullish on housing because where they come from, houses are very expensive on price/income ratio.

    I would say that immigrants in general are used to high housing prices. A house in Guatemala can easily cost $200,000. But people there earn $200/month.

    A typical SFR in USA would be unaffordable to most immigrants in their own countries. So the fact that they can borrow the money to purchase houses here makes it a good deal.

    In developing countries, houses are passed down generations to generations. Property taxes are non-existent so real estate is a good store of value.

    It’s also a generational thing. The period of peace of the last few decades saw enormous house price increases in the developing world. 20 to 30 years ago, a house in Ho Chi Minh City could be had for $10,000. Now that same house might be $300,000 USD, or even $1 million, if in the right location. Same goes for China and India.

    One of my Chinese friend told me that back in the 1980s if you were a Chinese-American coming back to China, you’d be a celebrity. Now, nobody pays any attention. That’s how fast things have changed.

    Immigrants also live with extended family which makes it easier to share the cost of housing burden.

    August 30, 2010 at 1:26 PM #597401
    SD Transplant
    Participant

    yep….big time (I have asians friends in CV, so I’m qualified to confirm 🙂

    August 30, 2010 at 1:26 PM #597495
    SD Transplant
    Participant

    yep….big time (I have asians friends in CV, so I’m qualified to confirm 🙂

    August 30, 2010 at 1:26 PM #598040
    SD Transplant
    Participant

    yep….big time (I have asians friends in CV, so I’m qualified to confirm 🙂

    August 30, 2010 at 1:26 PM #598149
    SD Transplant
    Participant

    yep….big time (I have asians friends in CV, so I’m qualified to confirm 🙂

    August 30, 2010 at 1:26 PM #598468
    SD Transplant
    Participant

    yep….big time (I have asians friends in CV, so I’m qualified to confirm 🙂

    August 30, 2010 at 2:16 PM #597416
    Anonymous
    Guest

    I thought Asians were supposed to be smart?

    August 30, 2010 at 2:16 PM #597510
    Anonymous
    Guest

    I thought Asians were supposed to be smart?

    August 30, 2010 at 2:16 PM #598055
    Anonymous
    Guest

    I thought Asians were supposed to be smart?

    August 30, 2010 at 2:16 PM #598164
    Anonymous
    Guest

    I thought Asians were supposed to be smart?

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