Is foreign money keeping San Diego prices steady?

[Cow_tipping]

OK people bringing money in from asia : I doubt that. Why ??? Until ~7-10 years ago there where serious restrictions about how much you can bring over from India. In 1992 I was allowed $200. I am sure China and other asian countries are the same. I think they have increased it to ~2000 maybe, but its not gotten un capped I am sure. BTW The dollar used to be as high as 50 against the rupee, but it has recently dropped to ~45. So the weakening dollar, isn’t really against the third world really. Of course china has it indexed to the dollar.
Now I believe that it has to do with sense of entitlement. I routinely see my fellow co worker Injuns (who are probably making ~the same $$ as me) plonk down 450K+ for a 3000 sqft tract build which is also readily available from a different builder with lesser trim for 180K, and I have to wonder, what do these people know about the economy, demographics and history of this part of the country. Turns out, I have to explain to them what baby boomers are, what the bond market is all about and what the yen carry trade is. Oh yea, we all work at a bank, the largest in the world.
I just call it tunnel vision, or the fact that they let their wives decide and the marketing is geared to flummox women. I am there fore lucky … my wife will put the functionality of a plan well ahead of trim and design. Now I have to go find a 1 level house (Ranch) as per her orders. Sheesh.
Cool.
Cow_tipping.

[Alex_angel]

Again I am refering to recent purchases and why some areas refuse to go down in price and remain steady. This is mostly due to foreign money coming in and buying. They were not responsible for the run up. This run up was caused by the dumb greedy American looking to flip. What is sustaining new home sales is foreign money. The option of selling and upgrading while still possible is not happening as much as before. The people buying have money, cash, moola and are buying the house out right and really don’t care or worry about the cost. They assume because it is pricey that the neighbourhood must be nice. LOL. There are some parts or Rancho PQ that are in the $700’s and I felt like I was in an IOWA trailer park driving thorough.

[PD]

I went to the opening of the first subdivision in Stonebridge. The huge number of people was a sight to see. They had tables set up in the street to handle all of the potential buyers. Most of the lookers and most of the people going over the contracts were Asian.

In the Cays in Coronado, there is a large of amount of foreign money. There are many rich Mexicans and a mix of other foreign accents. However, there aren’t really that many Asians.

[Cow_tipping]

Some of the nicer areas holding up: That cannot be more misleading.
I’d put it crudely in numbers if I can.
At time line a, location 1 is at $x and location 2 is at $y.
At time line b, location 1 is at $x’ and location 2 is at $y’.
I’d venture to guess that, if external factors dont affect these locations x’/x will be equal to y’/y.
Of course one location may have had a new school, another location may have had a office complex and a highway, whatever, all that will add to or subract from the desirability and skew our math.
Of course if one location was much different than the other to start with, it may have seen the rush of one ethnic group or seen a huge proliferation of certain types of loans which when were suddenly made available caused it to surge …
AKA, for example higher priced areas may have had more liars loans. Better school district areas may have had more asians.
So the theory is:- Good or bad areas will retain their mathematical relation to each other unless external factors (be it market forces or demographic or waht not) change that “good” or “bad” level.
So nicer areas holding up well, just BS. maybe nicer areas had old money and old houses with people who lived in there for years and years and they didn’t use their house as a checking account. Not so nice areas, have had reconstruction, infill or other BS happen. AKA, market forces.
Cool.
Cow_tipping.

[forsale_2007]

OK people bringing money in from asia : I doubt that. Why ??? Until ~7-10 years ago there where serious restrictions about how much you can bring over from India. In 1992 I was allowed $200. I am sure China and other asian countries are the same. I think they have increased it to ~2000 maybe, but its not gotten un capped I am sure. BTW The dollar used to be as high as 50 against the rupee, but it has recently dropped to ~45. So the weakening dollar, isn't really against the third world really. Of course china has it indexed to the dollar. Now I believe that it has to do with sense of entitlement. I routinely see my fellow co worker Injuns (who are probably making ~the same $$ as me) plonk down 450K+ for a 3000 sqft tract build which is also readily available from a different builder with lesser trim for 180K, and I have to wonder, what do these people know about the economy, demographics and history of this part of the country. Turns out, I have to explain to them what baby boomers are, what the bond market is all about and what the yen carry trade is. Oh yea, we all work at a bank, the largest in the world. I just call it tunnel vision, or the fact that they let their wives decide and the marketing is geared to flummox women. I am there fore lucky … my wife will put the functionality of a plan well ahead of trim and design. Now I have to go find a 1 level house (Ranch) as per her orders. Sheesh. Cool. Cow_tipping.

 

You really need to go visit places like Shanghai, Moscow, Tokyo, because you have no idea what you are talking about.

 

Like i said, real estate in places like Shanghai and Moscow have bubbled so much more that places in America, even by American standards. Like I said, people like my sister in law come from China and have no problems buying a home here. Imagine if you were able to buy a place for $400k USD, rent it for $4000/month, and had to pay no taxes on the rental income. That's the current situation in some of these emerging places.

 

The fact is that a lot of you folks are living in denial. When you think immigrants, you think they can't possibly be coming here with a better quality of life than you. And that's where you're wrong. 

 

Again, I'm not saying all immigrants or all asians coming here are all wealthy. But the ones that end up in areas like CV and LJ, DelMar are.

 

If you want to keep living in denial go for it. But if you haven't noticed, a good portion of the Companies here have either been started by immigrants or are headquartered overseas.

 

 

[Alex_angel]

I agree forsale. People think of immigrants running across the border. I’m talking about immigrants coming to America with money and would rather put that money into something they can see like a house than a bank account where Uncle Sam can tap at them. Not Indian families working in high tech but familes from Hong Kong. Property in Hong Kong is so expensive that San Diego looks like a low rental community compared to it.

Please do me a favor. Go to any community that are still touring model homes and note who you see there. You will no doubt see about 75% asian families. Like people said. They spend smart, they save and they double the opccupancy to take the sting out of the mortgage. Most have money from China and Hong Kong. There are still a huge amount of Honk Kong people leaving because of the Chinese influence and do not want to leave their cash in a communist system.

The inital growth was due to flippers and people looking to upgrade. Now it is sustained through money from outside of the US. These people are not dumb and are not going to move to San Ysidro or east county. They know what the good areas are and they settle in there.

Like someone said earlier. In the chinese culture, owing a home shows that you are responsible and it is not uncommon for a newly married couple to have their parents living with them.

Visit these communities and you will see light of day. Now don’t get me wrong. I have no issues with asian families. They are quiet, respectful and very helpful. You won’t see an asian family having a BBQ until 2 am on a wednesday night keeping up all the neighbours like someone straight out of Texas. They respect their neighbors and their home.

[Cow_tipping]

OK essentially, Hong kong has high real estate values and allows free transfer into USD. OK I didn’t know. Do other countries also have the same aspects in asia. Cos I can tell you, India does have serious limits on how much you can move in dollars out of the country.
Cool.
Cow_tipping.

[34f3f3f]

Money moves has become almost a truism. That rich Asians are investing in Real Estate in CA is nothing new. I remember before Hong Kong was handed back to China, there was a huge influx of money into London (and other places). People were buying off plan, like you buy a plane ticket online, and many were saying they were responsible for the house prices increases. Russians are amongst the richest in Europe now. London and Moscow are the second and third (respectively) most expensive cities in the world. Fortunes have been made in developing economies, and the rich want the trappings of the west, and in many instances the tax incentives provided.

If you are super rich, paying a high premium for a house is neither here nor there. If you are moderately rich I still think you’ve got to be nuts to buy anywhere at the moment. A tear down in Croatia can cost you $1m. Please, that’s fever not sense.

[Cow_tipping]

Indians have this tendency to believe the agent/salesman. I have often been told, what do you know compared to the sales person. She said this crap will be appreciating to the moon and beyond. WTF do you know.
That might be more the reason why sales people will shove aside white people to go sell to an asian. The asian will believe more of the BS the salesman will spew.
Cool.
Cow_tipping.

[forsale_2007]

>>>In the chinese culture, owing a home shows that you are responsible and it is not uncommon for a newly married couple to have their parents living with them. Visit these communities and you will see light of day. Now don't get me wrong. I have no issues with asian families. They are quiet, respectful and very helpful. You won't see an asian family having a BBQ until 2 am on a wednesday night keeping up all the neighbours like someone straight out of Texas. They respect their neighbors and their home.

 

(…or for that matter go with you on your honeymoon :(. )
And regarding the parents living with the kids. My wife and I am seriously considering buying another place…because she wants her parents to permanently live here and I wouldn't be able to even tolerate my own parents living in the same roof with me (no disrespect to my parents…I lovely them dearly. But we would end up killing each other). I would opt to rent my inlaws a place, except that would be disrespectful. As such, it makes no financial sense to do this,  but keeping my sanity is priceless. Sometimes I wish we didn't have the means to do this because then I could just say they can't live here permanently because I will go insane and we can't afford another place.

 

 

[sdrealtor]

Get a house with a granny flat. Separate space with a separate entrance makes it easier to separate lives.

[Cow_tipping]

And you’d think some heavy duty putting out will occur on the part of your wife if you let her parents live with you cos she’s now grateful … could not be more opposite. They will nit pick, and either she’ll be stressed at defending you, or be hating you cos she agrees with them, and then they will spend hours and hours yakking about crap that happened 20 years ago to people you barely knew then, it bores and tires out everyone, and of course there is the biggie … “shhhh they can hear” … ergo … no one gets laid good for the duration of the visit.
Cool.
Cow_tipping.

[asragov]

Foreigners smell blood in the US housing market. Remember, these folks made their money in Russia, Latin America, Asia, etc. etc. because they are smart. They are much more used to detecting crises than Americans.

Wealthy Mexican immigration really started in earnest in 1982, with the Peso devaluation that year. There are more wealthy Mexican and South Africans et al. in San Diego than many people on this forum believe, apparently.

A few friends of mine (Eastern European) have been bargaining hard recently, and are still unable to find a buyer that they feel “gets” it. This is at the very high end of the market, so that sector will also likely be affecting by the housing slowdown

So far, the stubborn sellers have found buyers, but it is early on, and this in the high end.

[Author]

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