Canadians play big role in real estate rush

[masayako]

Imagine an extreme scenario, let’s say a foreign RE investment group buy all the rental apartment complex near SDSU, and then raise rent by 20%. We would have a rental shortage near SDSU instantly and local students would need to pay more to be able to live near the school and have less money to spend on other items.

At the same time, this money would go back to the foreign countries, their children and trigger down. Wealth transferred outside. Who gets negatively impactd? U.S of A folks.

Why I speak of this? Because I know it’s happening in San Diego and other parts of CA. CAR won’t complain because their goal is to sell houses. Doesn’t matter who buy it as long as someone buy it.

Just look at Vancouver, people from Hong Kong ‘invest’ in it and now they are the biggest landlord in Vancouver. What happened next? Housing price tripled. Local buyers forced to move out from the good neighborhoods in Vancouver to somewhere remote.

It’s sick.

[masayako]

When a state government is desperate enough, they will sell out your home ownership right, standard of living etc. Look at 4S ranch, those 3000 sqfts McMansion should never be built in those post stamp size 5000 sqfts lot! That’s sad.

Eventually when the foreigner investment group bid high enough(due to their increased purchasing power from currency exchange), local government would/could favor them for land and build policy over our well being. That’s my biggest worry. Foreign investors takeover remains one of my biggest concerns of our US economics decline.

I have seen it happen in Canada (Vancouver, Toronto), it could happen here. Mark my words.

[masayako]

When a state government is desperate enough, they will sell out your home ownership right, standard of living etc. Look at 4S ranch, those 3000 sqfts McMansion should never be built in those post stamp size 5000 sqfts lot! That’s sad.

Eventually when the foreigner investment group bid high enough(due to their increased purchasing power from currency exchange), local government would/could favor them for land and build policy over our well being. That’s my biggest worry. Foreign investors takeover remains one of my biggest concerns of our US economics decline.

I have seen it happen in Canada (Vancouver, Toronto), it could happen here. Mark my words.

[masayako]

When a state government is desperate enough, they will sell out your home ownership right, standard of living etc. Look at 4S ranch, those 3000 sqfts McMansion should never be built in those post stamp size 5000 sqfts lot! That’s sad.

Eventually when the foreigner investment group bid high enough(due to their increased purchasing power from currency exchange), local government would/could favor them for land and build policy over our well being. That’s my biggest worry. Foreign investors takeover remains one of my biggest concerns of our US economics decline.

I have seen it happen in Canada (Vancouver, Toronto), it could happen here. Mark my words.

[masayako]

When a state government is desperate enough, they will sell out your home ownership right, standard of living etc. Look at 4S ranch, those 3000 sqfts McMansion should never be built in those post stamp size 5000 sqfts lot! That’s sad.

Eventually when the foreigner investment group bid high enough(due to their increased purchasing power from currency exchange), local government would/could favor them for land and build policy over our well being. That’s my biggest worry. Foreign investors takeover remains one of my biggest concerns of our US economics decline.

I have seen it happen in Canada (Vancouver, Toronto), it could happen here. Mark my words.

[masayako]

When a state government is desperate enough, they will sell out your home ownership right, standard of living etc. Look at 4S ranch, those 3000 sqfts McMansion should never be built in those post stamp size 5000 sqfts lot! That’s sad.

Eventually when the foreigner investment group bid high enough(due to their increased purchasing power from currency exchange), local government would/could favor them for land and build policy over our well being. That’s my biggest worry. Foreign investors takeover remains one of my biggest concerns of our US economics decline.

I have seen it happen in Canada (Vancouver, Toronto), it could happen here. Mark my words.

[EconProf]

You underestimate the dynamic and self-correcting nature of our market system, and also ignore some beneficial effects of such an event.
First, SDSU students are not stupid–they will go to other neighborhoods, etc., saddling the new foreign owners with huge vacancies. Second, those new areas receiving the influx of students, will boost their prices, spurring the building of more rentals, subdividing houses, etc. In addition, the happy sellers of all the SDSU-near housing and apts must have been paid a pretty penny to sell out–they will now spend, save, and invest, leading to more beneficial effects.
I think it was at the height of the Japanese boom in the 1980s when all the US-bashers thought we would be overwhelmed by the Japanese buyers (before their 2 decades of stagnation), that Japanese investors bought the famous Pebble Beach, for about $1 billion I believe. They way overpaid for it, and sold for a lot less years later. Vancouver may some day experience the same.
We need to keep our country open for business, preserve property rights and the rule of law, and welcome foreign investors while we hope they keep on welcoming us.

[EconProf]

You underestimate the dynamic and self-correcting nature of our market system, and also ignore some beneficial effects of such an event.
First, SDSU students are not stupid–they will go to other neighborhoods, etc., saddling the new foreign owners with huge vacancies. Second, those new areas receiving the influx of students, will boost their prices, spurring the building of more rentals, subdividing houses, etc. In addition, the happy sellers of all the SDSU-near housing and apts must have been paid a pretty penny to sell out–they will now spend, save, and invest, leading to more beneficial effects.
I think it was at the height of the Japanese boom in the 1980s when all the US-bashers thought we would be overwhelmed by the Japanese buyers (before their 2 decades of stagnation), that Japanese investors bought the famous Pebble Beach, for about $1 billion I believe. They way overpaid for it, and sold for a lot less years later. Vancouver may some day experience the same.
We need to keep our country open for business, preserve property rights and the rule of law, and welcome foreign investors while we hope they keep on welcoming us.

[EconProf]

You underestimate the dynamic and self-correcting nature of our market system, and also ignore some beneficial effects of such an event.
First, SDSU students are not stupid–they will go to other neighborhoods, etc., saddling the new foreign owners with huge vacancies. Second, those new areas receiving the influx of students, will boost their prices, spurring the building of more rentals, subdividing houses, etc. In addition, the happy sellers of all the SDSU-near housing and apts must have been paid a pretty penny to sell out–they will now spend, save, and invest, leading to more beneficial effects.
I think it was at the height of the Japanese boom in the 1980s when all the US-bashers thought we would be overwhelmed by the Japanese buyers (before their 2 decades of stagnation), that Japanese investors bought the famous Pebble Beach, for about $1 billion I believe. They way overpaid for it, and sold for a lot less years later. Vancouver may some day experience the same.
We need to keep our country open for business, preserve property rights and the rule of law, and welcome foreign investors while we hope they keep on welcoming us.

[EconProf]

You underestimate the dynamic and self-correcting nature of our market system, and also ignore some beneficial effects of such an event.
First, SDSU students are not stupid–they will go to other neighborhoods, etc., saddling the new foreign owners with huge vacancies. Second, those new areas receiving the influx of students, will boost their prices, spurring the building of more rentals, subdividing houses, etc. In addition, the happy sellers of all the SDSU-near housing and apts must have been paid a pretty penny to sell out–they will now spend, save, and invest, leading to more beneficial effects.
I think it was at the height of the Japanese boom in the 1980s when all the US-bashers thought we would be overwhelmed by the Japanese buyers (before their 2 decades of stagnation), that Japanese investors bought the famous Pebble Beach, for about $1 billion I believe. They way overpaid for it, and sold for a lot less years later. Vancouver may some day experience the same.
We need to keep our country open for business, preserve property rights and the rule of law, and welcome foreign investors while we hope they keep on welcoming us.

[EconProf]

You underestimate the dynamic and self-correcting nature of our market system, and also ignore some beneficial effects of such an event.
First, SDSU students are not stupid–they will go to other neighborhoods, etc., saddling the new foreign owners with huge vacancies. Second, those new areas receiving the influx of students, will boost their prices, spurring the building of more rentals, subdividing houses, etc. In addition, the happy sellers of all the SDSU-near housing and apts must have been paid a pretty penny to sell out–they will now spend, save, and invest, leading to more beneficial effects.
I think it was at the height of the Japanese boom in the 1980s when all the US-bashers thought we would be overwhelmed by the Japanese buyers (before their 2 decades of stagnation), that Japanese investors bought the famous Pebble Beach, for about $1 billion I believe. They way overpaid for it, and sold for a lot less years later. Vancouver may some day experience the same.
We need to keep our country open for business, preserve property rights and the rule of law, and welcome foreign investors while we hope they keep on welcoming us.

[masayako]

1. “they will go to other neighborhoods, etc.,”
> That will hurt students budget because it means higher transportation cost.

2. “In addition, the happy sellers of all the SDSU-near housing and apts must have been paid a pretty penny to sell out”

> Higher cost of housing is not good for the economy. Because higher cost means less money to spend on other items.

3. Land is not just any Goods and Services. Foreign policy should be in place should preserve Americans’ property right. Helping foreign investors can help us at certain degree in a short term. In the long term, it is NOT good for us.

[masayako]

1. “they will go to other neighborhoods, etc.,”
> That will hurt students budget because it means higher transportation cost.

2. “In addition, the happy sellers of all the SDSU-near housing and apts must have been paid a pretty penny to sell out”

> Higher cost of housing is not good for the economy. Because higher cost means less money to spend on other items.

3. Land is not just any Goods and Services. Foreign policy should be in place should preserve Americans’ property right. Helping foreign investors can help us at certain degree in a short term. In the long term, it is NOT good for us.

[masayako]

1. “they will go to other neighborhoods, etc.,”
> That will hurt students budget because it means higher transportation cost.

2. “In addition, the happy sellers of all the SDSU-near housing and apts must have been paid a pretty penny to sell out”

> Higher cost of housing is not good for the economy. Because higher cost means less money to spend on other items.

3. Land is not just any Goods and Services. Foreign policy should be in place should preserve Americans’ property right. Helping foreign investors can help us at certain degree in a short term. In the long term, it is NOT good for us.

[masayako]

1. “they will go to other neighborhoods, etc.,”
> That will hurt students budget because it means higher transportation cost.

2. “In addition, the happy sellers of all the SDSU-near housing and apts must have been paid a pretty penny to sell out”

> Higher cost of housing is not good for the economy. Because higher cost means less money to spend on other items.

3. Land is not just any Goods and Services. Foreign policy should be in place should preserve Americans’ property right. Helping foreign investors can help us at certain degree in a short term. In the long term, it is NOT good for us.

[Author]

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