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United States Of China: In Which States Is Your Landlord Most Likely To Be Chinese
America's #1 landlord may be private equity giant Blackstone, but closing in rapidly is none other than America's very own arch nemesis and ascendent superpower, China. But while until recently China's grand ambitions on US multi-family housing had largely flown under the radar, the recent sale of the Waldorf Astoria to a Chinese company has finally put the US on "China is coming" alert... and reincarnated a lot of the same jokes that swept the country by storm in the mid-80s when it appeared Japan, itself nursing a massive asset bubble, would run over Manhattan (everyone knows how that ended).
As the WSJ reports, "big institutional Chinese investors who want global real-estate portfolios typically look for trophy projects in cities like New York, Los Angeles and London. Just this month, Hilton Worldwide agreed to sell its flagship Waldorf Astoria hotel in New York City to a Chinese insurance company for $1.95 billion—the steepest price tag ever for a U.S. hotel, brokers say, although it isn’t the highest on a per-room basis."
However, it isn't just New York: "Chinese investors with smaller war chests want to be seen as international property players too, and they have their eyes on other cities. Over the past two years, more have sought to invest in offices and hotels in inland cities such as Chicago and Houston in the U.S., and Madrid and Frankfurt in Europe, according to a recent report by property consultancy Cushman & Wakefield."
“Chinese investors are distributing their investments across the whole country, not only focusing on selecting assets in prime locations…but also paying more attention to cities with lower prices and greater potential,” said James Shepherd, Cushman & Wakefield’s head of research for Greater China.
Too bad for China, the opportunities that are left for it by Wall Street are those that by now are virtually assured a negative IRR. But then again it was never about the profit: for Chinese institutions, US real estate, just like for Chinese retail buyers of luxury properties, is all about laundering hot money and parking it in a place that is relatively amicable towards Chinese funds. Which the US is. For now.
So which states are most likely to see an influx of Chinese landlords in the coming months?
The consultancy compiled a list of the top 10 U.S. states for Chinese investment. Though the top spots are no surprise—New York, which claims the top spot with more than $6.7 billion in investment, has a lead of more than $5 billion over runner-up California—others are less obvious. Texas, which comes in at No. 4, benefits from Houston, which has become more familiar to Chinese investors in recent years. The country’s state-owned behemoth China Petrochemical Corp., known as Sinopec, has operations there, and the city gained recognition with Chinese investors with the help of former Chinese basketball star Yao Ming, who played for the Houston Rockets.
And visually:
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Lat's Lassist!
lespect you landlol!
US property = emerging market investment opportunity
Submerging.
Australia set to seize assets of corrupt Chinese officials Date -- October 20, 2014-- Philip Wen
Beijing: The Australian Federal Police are poised to seize assets of corrupt Chinese officials within weeks, in an unprecedented joint operation with their Chinese counterparts.
In an exclusive interview with Fairfax Media, Commander Bruce Hill, the manager of the AFP's operations in Asia, has confirmed Australia has agreed to assist China in the extradition and seizure of assets of corrupt officials who have fled to Australia with illicit funds running into the hundreds of millions of dollars.
The joint operation will make their first forfeiture of assets within weeks, having agreed on a priority list of alleged economic fugitives who have taken residence in Australia – identified by Beijing as one of the most popular outlets for corrupt Chinese money.
Among the suspects identified by the AFP are naturalised Australian citizens and permanent residents who for years have laundered money under the guise of being genuine investment or business migrants from China.
"They don't all of a sudden leave overnight and take a bag of money with them. In some cases they're very carefully planned," Commander Hill said, who explained that a typical scenario involves officials sending their spouses and children overseas, often using them as a conduit to shift assets offshore.
Read more: http://www.smh.com.au/world/australia-set-to-seize-assets-of-corrupt-chinese-officials-20141020-118kl3.html#ixzz3Gw8nRrJi
This could get very sticky for some of them.
Fluk Leah!
Cushman & Wakefield and RCA are a bunch of tools for publishing this misleading data. $44M is the total Chinese institutional investment in Washington State since 2008? That is the biggest crock of shit I have ever heard.
These numbers are way higher, both on the face, and for the fact that many overseas investors invest in the US through blocker corporations, who act as disregarded entities to those located in Cayman, BVI, etc. etc.
Notwithstanding the fact that $95 million buys a lot more real estate units in Florida than in California or New York.
I am Chumbawamba.
If the Chinese want properties in New York or Cali, have them. Keep out of the fly-over states though.
I don't mind the Chinese doctors, engineers, etc coming over since they add to our society most likely. However, they can keep their corrupt officials; we have enough of those here already.
Looks like the Chinese state has found a way to get its money back. Bet they hold onto most of them, bought at past years' asset values.
This action will have been heard around the world.
Expect future activity on this subject to be under the radar.
Nope, enlightening
NY, CA, MD and NJ = the Chinese still long to live in police states. Just like home.
I think you meant "respect your randrord!"
Who would have thought that any state would have more than Cali?
Now I understand why Perry is wearing the glasses. Texas makes the list. Love you long time Lone Star State.
new york state = brooklyn queens and manhattan and the near end of longisland . that one small spot. there are chinese enclaves outside of the above areas, but most of it is there.
Once did a bit of research for mining rights near my dad's place out in the middle of pretty much nowhere...
Found his five acres on the assessor's records and started circling around on the property's that surround him. I was very surprised to find so many asian names. These are lands that haven't had a a footstep in over twenty years.
I circled out about two miles and, other than our quarry over the hill from him and our cluster of properties nearby, all that empty land was owned by asian names.
Empty, California Desert...I guess the equivalent in China/Japan/Korea of the Florida Swampland swindles.
Listen.
Look out! OldPhart. Them their Chinamen are commin to get you rock&dirt guys.
Seriously. I wouldn't worry until they start to influence your CONgressmen.
From a geopolitical viewpoint that is what the big fuss is all about. The nice Jewish people who own your CONgressmen don't want any competition. They want to keep the cost of ownership "LOW". Once the Chinese get a chance to bid on the CONgressman it's all over for the Jewish and that means the Muslim will swamp Israel and end it.
Reminds me of an old joke:
Tevya calls the local police station and says: "I've heard the jews have sold out mother russia".
The policeman on the other end affirms: "yes, it is true".
Then Tevya inquires: "if that's the case, where do I go to get my share?"
Alas, you seem to need a scapegoat to make sense of this chaotic world.
Let them buy the border states and turn it into a part of China. Maybe they'll stop the illegals from entering the rest of the country.
Don't be rate to pay lent.
I'm seriously LOLing but when they own this county it wont be as funny...
And just to think that in the 90-s the phobia was focused on Japan taking over. Anyone remember Rising Sun from Michael Crichton?
Greater fools. Good luck.
Fut me! I thought DC was the place.
But then, silly me, we all know who owns DC.
so uncle sam made a deal with china to make american citizens pay off our debt to the chinese. nice
You would think our government would have got a clue by now and slowed down on the over spending, but on and on they go like Thelma and Louise right over the cliff!!! Fiscal INSANITY!
You would think our government would have got a clue by now and slowed down on the over spending, but on and on they go like Thelma and Louise right over the cliff!!! Fiscal INSANITY!
So in 5.5 years Chinese institutional buyers bought $10 billion RE in all of USA?
Wow, that accounts for almost one drop of the Olympic size swimming pool!
Listen Malek.
Do I have to remind you that you are on The Hedge?
Yeah, some really nice landlords are placing ads on Craigslist like this one:
https://farm8.staticflickr.com/7456/8724831160_b3a0f72b89_b.jpg
10 billion is that it? Big deal, 6.7 billion in NY could be 100 penthouses.
Right! After all the huffing and puffing there's not a lot of ching in that chang.
Reminds me of when so many thought the Japanese would own the US in the 1980s.
Those people were idiots because America has had Japan by the balls since the end of World War II. You don't let your bound slave take over. When he misbehaves, a light spanking puts him in his place
China, on the other hand, as a country whose government does not at least on the surface appear to be a total US puppet, has a lot more freedom in this regard.
But hey, if people want to think "It didn't end up happening before, so that proves we're invincible", so be it. It just makes it all the more sweeter.
The problem with your thinking and of those back in the 1980s is that to actually enforce their land rights, they would have to go to war with ground troops. Otherwise it is the the court system.
Anyway, China is as bankrupt as any other system as they rely on fiat just as we do. Enough said.
Dear Chinks, let me give you a few lessons in owning residential rental real estate. Lesson number one you can't manage residential rental real estate remotely from someplace else because your tenants are assholes no matter what income group they fall into and they will run over you like a welfare bumwas spotted a wallet on the street. lesson number 2 find yourself a good Mexican Janitor who will keep the riff raff out and maintain the building and of course the landscaping. elevators lesson number 3 make sure you find an elevator mechanic who is willing to work on the side because elevator repairs will make the cost of repairing your Ferrari look like a bargain. lesson number 4 make sure you find yourself a corrupt real estate tax attorney otherwise the Cook County government will become your equity partner in your propertygood luck rice balls cuz you're going to need it
Oh lord, that's some hysterical truthiness right there. lol
+10 Nozzel!!!!!
Yup, sold out, sold down the river.
did you know it is illegal to say sieg heil in germany? the socialists are as fascist as hitler was.
Jim Jones (Pastor) did that shit killing many people.
Since that time the governments in Central and South America have created laws preventing foreigners from buying large areas.
hehe.
did he?
were you there?
it's funny when people regurgitate information that they are fed by the MSM as if they are facts.
@ Stacking12321:
You do not know but, I'm Brazilian.
Yes, I was at the time, I'm 52 years old.
I'm used to here in ZH Trolls, you're just another jerk who encounter ahead.
Mane!
No hard feelings, you are not to blame for not knowing things.
hehe.
Um supusitório intelectual a você:
http://pt.wikipedia.org/wiki/Jim_Jones
hehe.
Let's see if the proposed NYC luxury tax on apartments valued over $5 million where the owner isnt a 6-month-plus-1-day resident has a chilling effect on Chinese ownership rates.
The Chinese should feel very much at home in those top 3 communist states...
Listen.
The Chinese that I know are more capitalistic than the 'mericans that I know.
How do you think they got soooo much "MONEY"?! They can buy up all your junk USSA Treasury debt and buy up your American shit real estate. No problem. LOL.
so why are all of you gay Indians going to the USA?
Listen.
Like I said. We go to places where we can get premium wages. We convert caloric output to --> fiat then to --> real money, gold/silver.
Then return to our native land and hire an American to do our laundry and cleaning.
Easy.
oh yeah Chinks, i
almost forgot the Fair Housing Act wait until you get sued buy some nig nog who claims you discriminated against them which you probably did because they treat their apartments like gorilla nests, again this is the part where you want to have the Mexican janitor to keep the nig nogs out. do not rent to nig nogs I can't emphasize that enough. oh yeah this is really funny one, the Chicago landlord tenant ordinance it's basically a statute that stacks the deck against you in favor of scum bags who get to wreck your property with impunity and you can't do jack s*** about it while they get to stay there rent free while you slug it out in some filthy Cook County courtroom with some s*** bag jew communist attorney who gets to put his hand in your bank account.
Not my landlord or any other kind of lord.
Own mine outright lock, stock & barrel.
Nobody does. Not even you. That is why property taxes should be illegal just as income tax should be illegal.
Don't pay your property tax, you lose your property lock stock and barrel.
Horse farms are in play in MD. The Saudis bought them from the DuPont family and are now selling to Chinese investor groups. The Chinese tour the farms by helicopter and spook the expensive thoroughbreds. This won't end well.
It was just 2 real estate bubbles ago that everyone was freaking out that the Japanese would own everything. Not long after they were giving all that stuff away for pennies on the dollar.
Don't forget:
These figures are just for INSTITUTIONAL investors.
First drink your coffee before you see the figures for all NON-INSTITUTIONAL investors. I am sure those figures will make you cly and thlo up.
But a lot of that money in NYC is ridiculous prices for sky-high condos, right?
Wonder if the square feet is larger in California.
McDonald's considers 'organics' after worst monthly sales growth in a decade
http://wtfrly.com/2014/10/22/mcdonalds-considers-organics-worst-monthly-...
The Chinese are dumping their wad of USTreasuries onto the market in exchange for real assets. I read that they are retaining Hilton (I believe) for 100 years to manage and service the property, and they want some rehab done... hence the seemingly high price. The UST's are money-good, so they have no debt on the places they buy. They have done the same all over Africa, Canada, and Asia, buying up commodities, real estate, and farmland. They are thinking about buying most of Detroit as well, all with "cash" deals (well, UST's, anyway), and sucking up the remaining wealth all over the world. The Japanese were using debt to buy real estate, with no hope of servicing or maintaining the properties. This is totally different.
We are so screwed...
Doesn't seem like much yet. But it does look like they've found some suckers to buy up a crumbling NYC. When you think about it NYC could go Detroit at any time and who would care? It came into existence because of reasons and conditions that don't exist today. Place is a cess-pitt if you ask me. It has very severe infrastructure problems and the social functions that take place there can be re-located anywhere in the world. I say bulldoze the place and get it over with.
Be patient
Sandy's sister should break the back of NYC tired ancient infrastructure
Then the Chinese will own what they know best, another septic wasteland
They're convertign their dollar mountain into real assets before the crash.
If China can run things better, I welcome our Chinese overlords.
It's not the color of your yellow skin, it's the size of your fiat bank account.
Auslanders raus!
I can understand the feeling but - from a creditor nation's perspective - I find it frankly worrisome. The US has already enjoyed the fruits of seignoriage, spent the newly created money on foreign goods and now seems to want to be forgiven the correcponding liability? If you don't honor a dollar spent abroad as a claim on real resources in the US, you endanger the dollar. It's not the Russians and the Chinese who are plotting to undermine the role and the value of the dollar. If the dollar goes, it's only if and because the US themselves deplete their stock of real capital.
The Russians have left theThai market were I live. Thailand is headed for big troble.
Is racism zerohedge's last shot? This site is getting more and more pathetic day by day...
The real landlord for all private land "ownership" is US Government.
Think not? Try stop paying property taxes and see what happens.
You only own the right to use "your" land as long as you continue to pay the user fees.
"reincarnated a lot of the same jokes that swept the country by storm in the mid-80s when it appeared Japan, itself nursing a massive asset bubble, would run over Manhattan (everyone knows how that ended)".
I don't know how that ended...
Landlord's new name:
"Went Too Hei"
Ho Lee Fuk
Ya know, the crash of that Asianair plane was indeed a tragedy,
but the release of the "crewmembers names" and the reporters naivete' are one of the greatest spoofs of all time!
Why is it that this cycle of boom-bust feels like I'm stuck in a neverending Scoobydoo episode?