Home prices in China appear to have peaked so droves of Chinese investors are turning to the San Francisco Bay Area instead. The Contra Costa Times reports: Wei Luo, an electrical engineer-turned-contractor and real estate investor, said he has helped at least 10 friends from China buy about 15 homes and condominiums in the Bay [...]
Many people assume that China is somehow immune from a housing crisis because buyers typically put down large down-payments. This is bass-ackwards. China is far more susceptible to economic catastrophe specifically because it is the people, not the banks, that will suffer the most. A culture of savings is watching it disappear. Combine this massive destruction [...]
1. Too Many People Bought Too Many Homes From The New York Fed: At the peak of the boom in 2006, over a third of all U.S. home purchase lending was made to people who already owned at least one house. In the four states with the most pronounced housing cycles, the investor share was [...]
$400,000 condos rent for $600 per month. I love the hot water heater part… I don’t care if they put down 50%. They are going to lose it.
China is going to slow, much more than anyone thinks. The commodity producers and commodity producing countries like Australia and Canada will take a hit. In contrast, the US, Japan, and Europe will benefit from falling oil prices. However global trade in general will slow, as will employment, and corporate profits.
I have done many stories on China’s ghost cities. So have others. However, yet another ghost city story has come up recently that’s worth a good look.
China bulls insist this is sustainable. The construction numbers alone vs. the overall population shows otherwise, even if the Chinese could afford to buy those units.