[quote=joec][quote=mixxalot]It is until the funny Chinese money runs out. When I lived in the bay area, open houses were 99% dominated by Chinese and Indians. I moved due to much higher living costs than San Diego and lower quality of life. Bay area where I rented in Mountain View was not bad but my neighbors were constantly always working six days a week or busy with kids.
In San Diego I pay 2K less than bay area and people are more laid back. Traffic is just as bad now though here as it is in the bay area but fortunately I don’t have to drive that much in it.[/quote]
I’m not sure how it is now in SD, but I think if someone looks at all the recent buyers in CV of new developments, I’d guess that close to 80%+ will have an Asian or Indian last name too…
Last open houses I went to were probably close to 90% asian (incl. indians)…flu can probably confirm in his CV hood.
Not 99% (probably exaggerated…but not that different from the bay area I think).[/quote]
There is probably a reason for this, as the Chinese economy tanks. People keep trying to draw parallels between the re purchases now from Chinese versus thosenmade from Japanese Taiwanese and Korean back in the 80ies and 90ies…but I think the motivation for individual purchases are completely different. Back when the Japanese/Koreans/Taiwanese were buying re from the 80ies and 90ies most of it was speculation and very little of it had to do with people wanting to relocate here. I think a lot of the re purchases happening on the high end is more motivated out of fear that when the economy in china tanks, the 1% wealthy there are fearful they will be the scapegoat for all the government’s failed intervention policy. And the fear goes all the way from being fearful that the government will simply confiscate the wealth..to fear that the government will confiscate and throw people in jail..So I think at least for the wealthier, they are parking their assets in the US and elsewhere where it is out of reach of the Chinese government..and are probably working on immigrating here…….I said this many times. Things might be pretty screwed up here, but the rest of the world is much more screwed up. Just a few days ago, I think the Chinese government jailed a few people that had a hedge fund that was shorting the markets. So you can bet as the markets tank there, the wealthy will have a big target on their back and the environment will increasingly get more hostile towards them… especially if the regime changes…
The people buying multimillion homes in the US are not your average middle class worker in china. They really can’t afford it here. Its all the wealthy buyers. And I think the way they look at it is…buying re in the u.s. might eventually cause them to lose 10-20% if home prices decline. But its still better than losing 100% of their wealth by keeping it in china if the government increasingly gets more hostile towards them…
