This page has been archived and commenting is disabled.

80% Of All New Home Buyers In Irvine Are Chinese

Tyler Durden's picture




 

When RealtyTrac released its latest home sales report, "which shows single family home and condo sales through August were on pace for an eight-year high nationwide and in 110 out of 204" it was something else that caught our eye. According to RealtyTrac president Daren Blomquist, "the continued strength in sales volume across a wide spectrum of markets in August indicates that shockwaves from recent global stock market instability have not weakened the housing recovery and in fact there is evidence that the instability has fueled more demand for U.S. real estate."

Which was to be expected: as we have said for the past 4 years, one of the three pillars supporting US housing, or at least the very high end, is the money laundering of offshore hot money in the US, where courtesy of the NAR's exemption from anti-money laundering provisions, wealthy foreigners can park any amount of cash in US housing without any questions asked. In August this was particularly acute because as Blomquist adds, "cash sales share was more pronounced in markets that have traditionally been magnets for foreign cash buyers, including Boston, Las Vegas, San Francisco, Seattle and New York.”

 

And here was the stunner in question: "We are seeing more globalization as Southern California has become a destination for international buyers," said Mark Hughes, chief operating officer with First Team Real Estate, covering the Southern California market. "Eighty percent of new construction in Irvine last year was sold to Chinese buyers. International buyers are driving home prices up and sometimes out of reach for many local residents."

You read that right, a whopping 80% of all new housing in Irvine was bought by Chinese.

Which prompted some follow up reading. This is what we found:

  • California is the most popular U.S. destination for Chinese real estate buyers, according to Juwai.com, a Hong Kong-based property search engine.
  • Chinese bought 32% of homes sold to foreign buyers in California, double the share sold to Canadians, according to an April 2014 survey by the California Association of Realtors. About 70 percent of international buyers pay cash, the survey showed.
  • Buyers from Greater China, including people from Hong Kong and Taiwan, spent $22 billion on U.S. homes in the first quarter of 2014, up 72 percent from the same period in 2013 and more than any other nationality, the National Association of Realtors said yesterday in its annual report on foreign home purchases. That’s 24 cents of every dollar spent by international homebuyers, according to the survey of 3,547 real estate agents.
  • "A lot of people are trying to hedge against a generally bearish outlook for the Chinese economy,” Hanemann said in a telephone interview. “Buying real estate overseas has been in the past limited to a relatively small group of wealthy individuals and sometimes government officials. But it’s become a much bigger trend, involving affluent middle-class people."
  • Affluent being the key word: Chinese buyers paid a median of $523,148 per transaction, compared with a U.S. median price of $199,575 for existing-home sales. While Canadians bought more houses than the Chinese, they spent less -- a median of $212,500 per residence, for a total of $13.8 billion.

To be sure, the Chinese influx was felt particularly during 2014 when the first reverberations of the burst Chinese housing bubble were felt, and forced many to look to the US for parking capital for safety:  "The uncertainties in China’s domestic market are contributing to a higher rate of growth in Chinese interest in U.S. property,” Andrew Taylor, co-chief executive officer of Juwai.com, said in an e-mail. “That interest began accelerating in the second quarter of 2014, in part because of China’s property slowdown."

It remains to be seen if the recent modest uptick in Chinese housing transactions, if not prices, will lead to a capital reallocation by Chinese buyers out of California and back into China.  But in the meantime, Chinese buyers have made numerous domestic housing markets inaccessible to average Amercians:

  • Buyers from China are driving up prices and fueling new construction in Southern California areas such as Arcadia, a city of about 57,500 people with top-rated schools, a large Chinese immigrant community and an array of Chinese restaurants and markets.

    The median home price in Arcadia’s 91006 ZIP code was $1.28 million in mid-2014, up 18.5 percent from a year earlier, according to research firm DataQuick.

  • About 90 percent of my buyers are from China,” said Peggy Fong Chen, a broker with Re/Max Holdings Inc., who sold 80 homes in Arcadia last year. “They want new construction. They want two levels. In China, it is considered a mansion if it has two levels.”
  • More than three out of four buyers pay cash, said Chen, a native of Hong Kong who’s been selling real estate for 10 years. At least 20 percent are absentee owners who don’t have long-term visas yet. Many purchase houses for their children to attend high school or college, she said.
  • Buyers from China and Asian-Americans purchased about 80 percent of the 47 houses sold at Tri Pointe Homes Inc.’s Arcadia at Stonegate community in Irvine, about 40 miles southeast of Los Angeles, according to Tom Mitchell, president of the Irvine-based builder.
  • Almost half of the buyers paid cash for houses in the development, at prices starting at $1.16 million, he said. The company has been surprised by how word travels among overseas buyers. “A Chinese national bought one of our houses at Arcadia in Irvine after reading about it on a blog,” Tri Pointe CEO Doug Bauer said in a telephone interview. “It was a Chinese blog. We couldn’t even read it.”

Which brings us to the key issue: uncontrolled Chinese money laundering which is the primary reason for this capital exodus, and billions in Chinese "hot money" bidding up luxury US real estate into the stratosphere. We have discussed it extensively before, and here is bloomberg:

Some wealthy Chinese have come up with ways to evade the yearly $50,000 per-person limit on taking money out of the country so they can buy U.S. real estate, Yu said. Methods include laundering money through Macau casinos and cooking the books of import-export companies, he said.

 

“A lot of people over-invoice export proceeds, so they can park some money outside,” Ha Jiming, chief investment strategist for Goldman Sachs Group Inc.’s China investment management division, said at a Los Angeles conference in April.

Putting a bottom line on the capital outflows, according to the NAR, sales of U.S. houses to long-term foreign residents and non-resident buyers accounted for about 7 percent of the $1.2 trillion of existing-home transactions in just the first quarter of 2014.

So realistically, call it 10%, which means that mostly all cash foreign buyers are responsible for about $500 billion in US real estate all cash investment every year, of which anywhere between a third and a half is Chinese.

And there is your massive Chinese capital outflows in a nutshell, which incidentally is also the biggest threat facing China's economy now that it has begun devaluing its currency and yet is desperate to avoid the capital flight from its economy.

Which makes us wonder: if asked what presidents Xi and Obama really discussed in private last week, a safe bet is it wasn't computer hacking, nor artificial islands in the South China Sea, but how the US plans to curb the outflow of hot Chinese money into US real estate.

Which is a problem for the US, because thanks to Chinese capital flows, it means half a trillion dollars in capital flow right into the US economy via real estate every year. Call it 3% of GDP, roughly what the US growth rate should be. Xi is angry that this capital is leaving his economy; Obama is delighted.

How will this very critical issue be resolved remains to be seen but as we will note in a follow up post, China is already taking very aggressive steps to finally limit and halt altogether the epic money laundering that is sucking China's economy dry and is leading to such dramatic outcomes as 80% of all buyers in a major US metro-area being Chinese.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Wed, 09/30/2015 - 18:44 | 6613438 whitelivesmatter
whitelivesmatter's picture

I'm sure they will not vote socialist and respect the 2nd amendment. /sarc

Wed, 09/30/2015 - 18:50 | 6613464 Navymugsy
Navymugsy's picture

It's California. They already threw out the second ammendment.

Wed, 09/30/2015 - 19:17 | 6613549 zaphod
zaphod's picture

I go to a range in the peninsula, usually about 25% of the people there are asian, which is slightly higher than the overall population. 

Wed, 09/30/2015 - 19:30 | 6613599 Clowns on Acid
Clowns on Acid's picture

Take your meds...

Wed, 09/30/2015 - 21:15 | 6613959 Ignatius
Ignatius's picture

Are we gonna get some more railroads outa this?

Wed, 09/30/2015 - 21:30 | 6614003 Bollixed
Bollixed's picture

Wong Chow calls into work and says, “I no come work today, I really sick. Got headache, stomach ache and legs hurt, I no come work.”

The boss says, “You know something, Wong Chow, I really need you today. When I feel sick like you do, I go to my wife and tell her to give me sex. That makes everything better and I go to work. You try that.”

Two hours later Wong Chow calls again. “I do what you say and I feel great. I be at work soon. You got nice house.”

Thu, 10/01/2015 - 01:12 | 6614590 Otrader
Otrader's picture

Thanks for the chuckle Bollixed.

Wed, 09/30/2015 - 19:17 | 6613551 zaphod
zaphod's picture

I go to a range in the peninsula, usually about 25% of the people there are asian, which is slightly higher than the overall population. 

Thu, 10/01/2015 - 01:58 | 6614630 Perimetr
Perimetr's picture

 

 

Slavs and the Yellow Peril are “niggers, brutes and beasts”, in the eyes of Western Empire

http://thesaker.is/slavs-and-the-yellow-peril-are-niggers-brutes-and-bea...

Thu, 10/01/2015 - 09:12 | 6615309 SandDab
SandDab's picture

That article is Psyop.  It was the "minorities" from the Iberian Penninsula that eventually subverted the Netherlands, then England.  They were Jews, including Christopher Columbus.  The Jews from Spain were special though; they descended from those that escaped the 70AD conquering of Jerusalem.  That makes them from King Herod and his kin.  Some say they're the Piso family (all US presidents come from this line with the most 'Royal' having always won), but they can be definitively linked to Sabbatean-Frankism, the Rothschilds, the Jesuits, and the Illuminati.  Assuming this is all accurate, it makes the Sephardi Jews descendants of Esau, thus making them Edomites.  That makes the Bible right about which Tribe will come to rule the world.  By the way, it's the Tribe of Dan that's supposed to end the NWO.  Dan lost his ancestral home in the ME (Seleucid State) to invaders (Scythians and Romans) and had to move north to various lands.  They became the Vikings and Normans, but eventually lost their lands to the minorities again and were shipped to America throughout the 1600s.

 

The article debunks itself on the "yellow man."  Over 600,000 whites dies in the Civil War, but were conveniently replaced by Chinese at a fraction of the cost as soon as the "war" was over.  Both sides were bankrupt and didn't have the capital to build railroads before the war even started.  Frankists planned the "Opium Wars" in advance of the Civil War to seamlessly replace the dead Whites, thus save tons of money.  Lincoln was a Rothschild, son of AA Springs.  Means the North was under Rothschild/Sabbatean-Frankist control, while the South was under Jesuit control, but both orginizations were controlled by the same family.  Many say the Lincoln's death was a hoax.  The NWO started about 500 years ago.  Look at the "Nameless War," by Captain Ramsay, a previous member of the British Parliament.  Colonization started with Spain, then moved to the Netherlands, then to England - all in waves before these folks move on to infect the next country and hide their tracks.  "They" control all nations now.  Hegelian Dialectic for us.  Don't kill off the light-skinned Tribe of Dan folks, they're our last hope according to God.  This is why the coordinated Jesuit/Doenmeh Muslim invasion into Blond Lands.

 

China's government was placed by Rothschild bankers and Putin's on the team too.  Hegelian Dialectic. 

 

Wed, 09/30/2015 - 18:55 | 6613475 ZH Snob
ZH Snob's picture

if you live in Irvine, be nice to them.  these chinese immigrants will soon be your bosses.

Wed, 09/30/2015 - 19:13 | 6613538 mtndds
mtndds's picture

United States of China.

Wed, 09/30/2015 - 21:01 | 6613916 The Big Ching-aso
The Big Ching-aso's picture

80%...........

Hey maybe they should rename it Chivine?

Wed, 09/30/2015 - 21:23 | 6613988 GhostofBastiat
GhostofBastiat's picture

And Buena Park, CA (In Orange County, next to Irvine and Anaheim)...we have an English language website! /sarc

http://www.gombz.com/

Ask for Sam Whang...his team of 5 chineese speakers can assist.  80% of service dept volume is Chinese!

 

...no one beats the House  (tagline for House of Imports)

Wed, 09/30/2015 - 19:45 | 6613647 Supafly
Supafly's picture

Being priced out of our own market.  Precious.  Like a banana.  Grown in a Republic.

Wed, 09/30/2015 - 18:46 | 6613441 new game
new game's picture

are you sure that you want to be part of this mess? oh that's right you're leaving china, ha...

Wed, 09/30/2015 - 18:46 | 6613442 knukles
knukles's picture

Last time a bunch a Asians bought a shit load of CA was in 1990 when the Japs bought Pebble Beach. 
How'd that work out?
No so good.

Wed, 09/30/2015 - 19:04 | 6613508 steveharless
steveharless's picture

It will be interesting to see how things turn out in Las Vegas with all of the cash buyers from asia

www.ViewLasVegasRealEstate.com

Wed, 09/30/2015 - 20:03 | 6613700 Kassandra
Kassandra's picture

There are so many of them they can take over without firing a shot.

Wed, 09/30/2015 - 21:21 | 6613985 Mr. Schmilkies
Mr. Schmilkies's picture

yes, it's all going according to plan

Thu, 10/01/2015 - 06:27 | 6614849 messymerry
messymerry's picture

Vegas will reincarnate as "Barter Town". 

Thank you Steve,

;-D   

Wed, 09/30/2015 - 19:33 | 6613612 Max Steel
Max Steel's picture

and there are no similarity btwn Japs and Chinese fyi

Wed, 09/30/2015 - 18:47 | 6613447 order66
order66's picture

That's really nothing new. It's been that way there for years.

Every school in that town is 10/10 on the AP scale now.

Ooo Mao Ma

Wed, 09/30/2015 - 18:48 | 6613452 new game
new game's picture

since the last forty night moar millionaires from r.e., ha, tyme to unwind that...

Wed, 09/30/2015 - 18:48 | 6613457 buzzsaw99
buzzsaw99's picture

they make better neighbors than most of the scumbags around here. i know, dat's rayciss.

Wed, 09/30/2015 - 19:10 | 6613524 I_rikey_lice
I_rikey_lice's picture

True dat!

Wed, 09/30/2015 - 19:46 | 6613648 techpreist
techpreist's picture

I grew up in Southern white churches and currently attend a Chinese church with my wife, and by comparison, there are few divorces, people are better educated, among many other good things. They brought the best parts of their culture with them while leaving the worst parts behind.

Wed, 09/30/2015 - 18:49 | 6613461 Navymugsy
Navymugsy's picture

NAR really helped USA by lobbying to allow all of that foreign cash into the country with no questions asked. Thanks Lawrence Yun.

Wed, 09/30/2015 - 19:34 | 6613578 CheapBastard
CheapBastard's picture

Moar Loot. Reminds me of the millions in drug money that flowing into southern Florida before source of cash had to be documented. I guess the DOJ and AGs just look the other way.

 

When Corrupt Chinese Officials Flee, The U.S. Is A Top Destination

 

http://www.npr.org/sections/parallels/2015/06/23/416828057/when-corrupt-...

Wed, 09/30/2015 - 18:55 | 6613462 wizteknet
wizteknet's picture

Time for diversity... Do they speak spanish? If not they better learn quick!

Wed, 09/30/2015 - 18:50 | 6613463 Shadow1275
Shadow1275's picture

Meh, I'll take the Chinese. At least they work hard and respect the law. As likely as it is they will vote socialist the majority of America is already socialist whether they know it or not. Besides, I like their Beef Teriyaki.

Wed, 09/30/2015 - 18:56 | 6613478 NihilistZero
NihilistZero's picture

Try watching your nbeighborhood turn in to a Chinatown where even the old Chinese residents can't stand the New Money Chicom Asshole come latelys.  Learn Mandarin or GTFO is their MO.

Wed, 09/30/2015 - 20:05 | 6613705 techpreist
techpreist's picture

I'm guessing you're talking about the princelings who are bringing millions in their parents' cash with them? Compared to my other post... yeah, these guys bring the worst of Chinese culture with them. I haven't heard of "learn Mandarin or GTFO" anywhere though; these kids are proud to show off their English.

I would say, let them blow all their cash here, so we can buy their failed investments for 20 cents on the dollar, and then send them back to their parents. These ghost-city builders are also the ones paying 5x real value or more for land, but I am hoping they are beyond their government's ability to bail them out when their investments tank in the next crash.

Fri, 10/02/2015 - 13:24 | 6621577 NihilistZero
NihilistZero's picture

I'm with you on letting them be bag holders.

My "Learn Mandarin or GTFO" jab isn't that they can't speak the language, it's that if you now want to do business in any of the invaded communities you better be able to speak THEIR native tongue or they don't have time for you.  Assimilation my ass...

Wed, 09/30/2015 - 19:31 | 6613605 Lost in translation
Lost in translation's picture

Respect the law?

DYODD.  They flaunt the "laws," make a mockery of them and game the system to the hilt.  The scale is almost incomprehensible.

Westerners are stupid.

Wed, 09/30/2015 - 19:58 | 6613686 Shadow1275
Shadow1275's picture

Everyone games the law. Minimum wage benefitters call for less working hours because now that the wage has increased they recieve less healthcare benefits. People abuse tax loopholes by storing money overseas. Large corporations pay off government officials to prop up their harmful business practices with bailouts.

 

That is why government is a problem. Power corrupts and absolute power corrupts absolutely. It doesn't matter what race you are. 

Wed, 09/30/2015 - 18:54 | 6613474 TAALR Swift
TAALR Swift's picture

The next "Dual Citizens".

Wed, 09/30/2015 - 18:57 | 6613481 Bunga Bunga
Bunga Bunga's picture

LMFAO what overpriced crap they are buying.

Wed, 09/30/2015 - 18:58 | 6613483 binky
binky's picture

Yellowlining? -- in reverse.

Wed, 09/30/2015 - 19:01 | 6613496 Seasmoke
Seasmoke's picture

Lawrence Yun says don't worry about it round eyes. 

Wed, 09/30/2015 - 19:51 | 6613662 negative rates
negative rates's picture

Why worry about the worry, why worry about the problem, when the century city just had to be coming.

Wed, 09/30/2015 - 19:01 | 6613498 Seasmoke
Seasmoke's picture

Lawrence Yun says don't worry about it round eyes. 

Wed, 09/30/2015 - 19:02 | 6613502 Brokenarrow
Brokenarrow's picture

the extent to which we have fucked ourselves astounds me. how many americans are running to shanghi to buy a fucking house? we sent them our jobs. we filled their pockets full. a young american family cant buy. the whole fucking game is insane.

Wed, 09/30/2015 - 19:59 | 6613681 negative rates
negative rates's picture

There is one place you can still go, getting there is tricky, bound to be a long trip indeed, the timing is everything, pack light and go with friends, no one said life would be easy and it aint over till it's over. Fight the good fight, it's all we can do at this point.

Wed, 09/30/2015 - 19:11 | 6613527 Main_Sequence
Main_Sequence's picture

It's the same fucking story in Vancouver/Hongcouver -- Chinese/Hong Kong residents buying up multi million dollar properties and driving up the market value and driving regular Canadians further and further out.

Wed, 09/30/2015 - 19:12 | 6613529 LetsGetPhysical
LetsGetPhysical's picture

Buying at the top of the market... smart.

Wed, 09/30/2015 - 19:15 | 6613544 kbohip
kbohip's picture

I read that they're already working on a wall to keep out the "Mongorians", whoever they are.

Wed, 09/30/2015 - 19:22 | 6613558 ThroxxOfVron
ThroxxOfVron's picture

Yuan counterfeiting/fraud hot inflow = 100+% of US inflation as measured against purported GDP.

This is one further indicator that the US is actually flailing about in a ZIRP/ZGDP stagflation/liquidity nightmare of unprecedented depth and ferocity.

Without Chinese RE laundering GDP accounting in the US collapses and the recession/depression is starkly revealed in RE buildiners, new constructions, and gross sales.

Image what would have had to have been done since late 2013 if the inflow had not happened or been blocked by either US regulators or the Chi-coms.

The Fed doesn't have to print and inject $1T if the Chinese are going to onshore Yuan FX counterfeits and inject it into the real economy for them.

Wed, 09/30/2015 - 19:21 | 6613559 RopeADope
RopeADope's picture

Money obtained fraudulently behaves differently than earned money.

This is why no one in power complains about all the hot money coming from China. They make bank off these criminals because they are willing to pay uneconomical prices.

Wed, 09/30/2015 - 19:23 | 6613565 ThroxxOfVron
ThroxxOfVron's picture

Fencing stolen goods and laundering counterfeited/dirty money are never cheap.

Wed, 09/30/2015 - 19:26 | 6613581 dojufitz
dojufitz's picture

Mee no likee.

Wed, 09/30/2015 - 19:26 | 6613583 Stevious
Stevious's picture

I've lived in the Philippines and in Thailand.  In both places you can "rent" (if necessary for 100 years) but cannot buy houses or land.

In America anyone can buy.  But there are not many places, even if one has the money where an American can buy actual land or a house.

 

Strange.

 

Wed, 09/30/2015 - 21:43 | 6614061 yogibear
yogibear's picture

You don't own the land in the US. You lease it from your county.

Stop paying property taxes and see how fast they will sell off your house.

Wed, 09/30/2015 - 19:26 | 6613587 Hongcha
Hongcha's picture

A shooting range is a good way to make new friends.  The Chinese and other asians will ally with whites when "things fall apart".  You can also ask them where to find decent Szechuan food, no easy feat.

 

Wed, 09/30/2015 - 19:28 | 6613593 Lost in translation
Lost in translation's picture

Ridiculous.

Clearly you DO NOT comprehend how Chinese think.

Wed, 09/30/2015 - 19:36 | 6613618 ThrowAwayYourTV
ThrowAwayYourTV's picture

Everytime I went up to look at my land that I built my off grid cabin on all the local would start target shooting just about the time that I got out of my truck.

I took it as though they were trying to scare me off. You know, like I was going to think, no way I'm sticking around here.

Shortly after I bought that land though the shooting stopped. Just about the same time that I started target shooting there too.

Funny how I go there on weekends now hoping everyone is target shooting.

I wonder if they know that? :)~

 

Wed, 09/30/2015 - 19:27 | 6613589 ThrowAwayYourTV
ThrowAwayYourTV's picture

Wait until they find out their investment in american real estate is at a huge loss.

Wed, 09/30/2015 - 19:51 | 6613661 Son of Loki
Son of Loki's picture

There's already talk of a 20%+ tax on these foreign-owned properties.

Wed, 09/30/2015 - 19:27 | 6613590 Lost in translation
Lost in translation's picture

Currently in the market in Irvine, myself.  Not finding anything I like, just poorly-built, overpriced, and way-too-cramped housing which I consider to be crap.

I have yet to find quality or value in Irvine - and I have looked.  Restaurants are awesome, however.

YMMV

Wed, 09/30/2015 - 19:32 | 6613591 Salsa Verde
Salsa Verde's picture

You should see the traffic nightmare every morning when commuting on the 405 through Irvine; any place where the road bends EVERYBODY slams on the brakes.  It is a critical mass of commuting Stoopids.

Wed, 09/30/2015 - 19:30 | 6613594 InsanityIsWinning
InsanityIsWinning's picture

Big thing fall over when there's no foundation.  What has been missing in this so called recovery is first time buyers . .Hmm, everyone else runs for bigger/better . . more, more, more (as the song goes) but, look behind you and you'll see you are alone on the top.  Once again my handle says it . . .

Wed, 09/30/2015 - 19:29 | 6613598 delivered
delivered's picture

This process is really very simple. China owes $1+ trillion of US debt and USDs and in the end is going to exchange it for California real estate. Period. That's it. The US repays its debt to China by selling controlling interest in California. Makes sense as California has good access to China via air/sea routes and already a firmly established cultural base (ranging from SF through LA). As the Chinese become more entrenched in California, they will begin to take control of the political system via pushing their agenda through the state legislation. And slowly but surely, bit by bit, little by little, California will eventually be acquired by the Chinese, either formally or via proxy, and one day the SFB's in Washington will finally realize they no longer control major Pacific assets, collateral, technology, agricultural production (even with the draught), etc.

The process is moving forward and quickly and not just associated with real estate. In the UC college system, both UC Irvine and UC San Diego are both now heavily populated by Asian students with a large percentage Chinese. Same problem with real estate is occuring with the UC schools as the dip shits running the UC system have sold their souls to the hot money from China, favoring familes that can pay big ticket tuitions at the expense of what's left of the middle class in the state. Translation, foreign and out of state students get preference as they pay 2 to 3x tuition at the expense of in state students. I speak from experience as my son along with a number of his friends were closed out of UC Berkelely, UCLA, UC Davis, UCSD, etc. again and again.

It's absolutely embarrasing right now watching the so called "leaders" in the state of California sell out to the hot money, killing the core middle class in the state. The state is dependent on real estate property taxes tagged to cost of purchase so please buy at inflated prices as this brings in more tax receipts. In order to properly fund the UC schools, they need more foreign and out of state students so again and even if your test scores aren't up to snuff, we'll accept you with the higher tuition. I could go on and on with my rant but I'm watching and living this real time in the San Diego area as the heart and soul of the state is being ripped to shreads by clueless leaders that sold their souls years ago. BTW, most of the Chinese real estate buying is occuring in the Bay Area (SF through SJ) and the LA basin but it will only be a matter of time before they discover other locals including San Diego, the Central Coast, etc.

Trust me when I say that the Chinese province of California (by 2050) is going to look a lot different than the state of California of the 1990's. Call it what you want (colonization, gentrification, annexiation by force etc.) but its hard to see how this trend is going to slow down any time soon. Not when the world's CBs and specifically the Fed have made the decision to sacrafice the middle class and create two classes. The super wealthy and the entitlement crowd (paid off to follow orders).

As Ceaser stated in the movie Gladiator when the final battle was fought and won, "So much for the glory of Rome". About the only thing I can say about California right now is the same, "So much for the glory of California and what once was". Barring a major change in political/economic direction (as well as enviornmental), the state could very well become the mother of all battle grounds.

Wed, 09/30/2015 - 19:35 | 6613619 Lost in translation
Lost in translation's picture

+1000

All true.

Wed, 09/30/2015 - 19:53 | 6613665 Fukushima Fricassee
Fukushima Fricassee's picture

Two questions

Whay in the fuck would anyone want to pay any amount of money to the UC system or attend any of the screwed up universities your mention?

Why in the Hell don't you leave California because as you say its all over.

Wed, 09/30/2015 - 20:08 | 6613714 delivered
delivered's picture

Question #1, not sure as my son attends the University of Colorado in Boulder (as we took a look at the UC schools and were not impressed).

Qustion #2, transition plan already in place as we sold our home in north San Diego in Q3 2014 (for countless reasons which included access to water, home costs, state taxes, etc.). Just need a couple/three years to clean-up a number of business matters and complete the exit. Our recon is already underway in states ranging from the Carolinas to Texas to New Mexico and others as we're attempting to stay ahead of the real wave of population relocation that will occur over the next decade. Any suggestions on where to land would be appreciated but plenty of space, access to water/sun (renewable energy), etc. are on the top of our list.

Wed, 09/30/2015 - 20:48 | 6613860 mijev
mijev's picture

Delivered, I would seriously take a few months and travel overseas. Right now your dollar will go a long way. I went through south america and found a few places that I liked but right now I'm in Malaysia and it ticks a lot of boxes. Places like Penang are first world with third world prices. The food is sensational and most people speak english (manglsh). Also send your kid to a great overseas university and he'll learn a new language and the tuition is almost free and in quite a few countries world class.

Wed, 09/30/2015 - 22:15 | 6614166 Fukushima Fricassee
Fukushima Fricassee's picture

Texas, Florida and Tennesee no state tax. Mid to North Florida is best of these three but please do not come unless you support gun rights and vote small government. Try Ocala, Homosassa perhaps lots of land and water around. North Carolina has turned left and SC is not as friendly as Fl. I have lived in all including Calif.

Wed, 09/30/2015 - 22:36 | 6614172 Fukushima Fricassee
Fukushima Fricassee's picture

Dupe

Wed, 09/30/2015 - 22:00 | 6614116 Babaloo
Babaloo's picture

Cal and UCLA are regularly ranked among the best universities in the country.  And not just public schools, all schools.  UC Santa Barbara, San Diego and Irvine are right behind them.  

Check yourself.  

Wed, 09/30/2015 - 22:43 | 6614244 Fukushima Fricassee
Fukushima Fricassee's picture

Over priced indoctrination in bullshit does not a finacial future make.

Learn to think , the US educational system fell apart at all levels years ago. check it.

Wed, 09/30/2015 - 19:33 | 6613613 Lost in translation
Lost in translation's picture

Addendum:

To quote/paraphrase another ZHer, it amazes me that the Chinese think their laundered, dirty money will be a safe in a country they've been ripping off for the past 25 years.

Wed, 09/30/2015 - 19:38 | 6613628 Laddie
Laddie's picture

This was all planned and executed by the Tribe:
Ted Kennedy is not responsible for the Immigration Act of 1965

ASIANS FORECAST TO OVERTAKE HISPANICS AS LARGEST IMMIGRANT GROUP BY 2065 The Financial Times (LONDON) September 28, 2015
Asian migrants to propel US population growth

The ranks of immigrants and their children will grow to reach a record share of the US population in the second half of this century, projections show, with Asian immigration taking over as the biggest source of population growth.

The forecasts demonstrate the extent to which immigration will reshape the US population, even as politicians such as Republican presidential frontrunner Donald Trump use hostility towards foreigners to appeal to parts of the electorate.

The report from the Pew Research Center finds that foreign-born individuals and their children will comprise 36 per cent of the US population by 2065, higher than the peaks reached at the beginning of the 20th century and up from 26 per cent now. The ranks of foreign-born individuals alone will also rise to a record.

The research finds that the driver of US population growth over the next five decades will be immigration from Asian countries such as China, India, Korea and the Philippines, with the expansion overtaking arrivals of Hispanics.

All over California, and elsewhere, birth tourism, primarily Chinese, almost exclusively Asian.
'Birth Tourism' Booming In Bay Area

Couple ordered to pay $10 million for selling trade secrets to Chinese 2015/09/23

A judge has ordered a former employee of a mid-Missouri tech company and his wife to pay damages of $10 million for stealing trade secrets and partnering with a Chinese firm to sell knockoff products to unsuspecting buyers, including the U.S. Navy.

The judge ruled against former Brewer Science engineer Hai Xuan and his wife, Hong Sheng, along with their company, Best Tools LLC.

The couple’s whereabouts are unclear. They didn’t show up at the court hearing and did not return messages seeking comment.

White man, 62, sits in jail in San Francisco for spray painting, "NO MORE CHINESE" charged with Hate Crimes
$155,000 Bail Set in Anti-Chinese Graffiti Case By Vivian Ho 2015-09-11

Eateries in Chinese town hold dog and cat meat festival

Thousands of dogs and cats slaughtered at China festival
Sellers kept the dogs dozens to a cage before electrocuting and skinned them alive, before serving them with lychee

Soaring Vancouver home prices spur anger toward foreign buyers

After years of watching Vancouver housing prices climb, driven in part by Chinese investment, Eveline Xia came to a painful realization: Despite having a Master's degree and solid career prospects, she might never be able to afford a home in the city where she grew up.

Vancouver, real estate agent Fatemeh Nouripour watched group after group of prospective buyers, most of whom appeared to be from mainland China, trudge through a fixer-upper listed for C$1.58 million.

Thu, 10/01/2015 - 00:53 | 6614573 IronForge
IronForge's picture

Funny.  

They don't seem to figure out that Hispanics make up more than 50% of the Population and Births of many a City from Texas westward.

Asians were roughly 4% of the Nation's population.   

Someone's not counting... 

Wed, 09/30/2015 - 19:38 | 6613630 Thirstyknowledge
Thirstyknowledge's picture

TO Shadow 1275, re: I like their beef teriyaki.

Really? Last I checked, beef teriyaki was Japanese.  A bit of a distinction if you are Chinese or Japanese.

Wed, 09/30/2015 - 20:03 | 6613698 Fukushima Fricassee
Fukushima Fricassee's picture

Stupid Murikans eat dominios beef teriyaki pizza and dine Itailian . Dim sum on that for a moment. 

Wed, 09/30/2015 - 19:42 | 6613634 yogibear
yogibear's picture

A while ago many wealthy Japanese loaded up on real estate in Hawaii.

How did that work out?

And all those Chinese investors buying into the hot real estate of ghost cities.  LOL, from one bad investment to another.

Wed, 09/30/2015 - 19:55 | 6613676 Fukushima Fricassee
Fukushima Fricassee's picture

Hawaii and California are bad investments because of government, were it not for government they would be great.

Wed, 09/30/2015 - 19:57 | 6613683 Son of Loki
Son of Loki's picture

My Dad bought a condo in Hawaii in the 1980s for $35k (hard to believe, yes!) and sold it one year later to some Japanese for $165k.

 

Then, the 1980s RE crash occurred and the condo was valued at nearly $35k again.

Back in the 1980s, the fed did not bail out all the bankers and also over 700 financial criminals and bakers were indicted by AGs and the DOJ ... as opposed to this time when zero have been indicted and the Fed has been propping up house prices and RE in general. So there has been no correction ... yet.

Wed, 09/30/2015 - 19:44 | 6613645 Gods
Gods's picture

I sold my house in south OC did well. Thank you China.

Wed, 09/30/2015 - 19:53 | 6613671 Son of Loki
Son of Loki's picture

I have no problem with legit cash coming in but how does a local government official there, for example, who gets an 'official' $645/month salary buy a $2.5million house in Cali?

 

It's paradoxical!

Wed, 09/30/2015 - 20:00 | 6613688 TheAntiProgressive
TheAntiProgressive's picture

Yeah but skip forward 20 years and just think of the meld with the womens.  Chinese duke it out with the illegal latins and the result?  Mexanese with big firm boobs, nice asses and that is it for Ms. USA all Mexanese winners for years to come.  Awesome.

Wed, 09/30/2015 - 20:19 | 6613740 Amish Hacker
Amish Hacker's picture

"Many purchase houses for their children to attend high school or college, she said."

Southern California Lamborghini dealers are licking their chops.

Wed, 09/30/2015 - 20:23 | 6613756 Chris Dakota
Chris Dakota's picture

And you bought all that Chinese shit, even killed your dog.

Buy American, yes you can.

Wed, 09/30/2015 - 20:53 | 6613879 kappal_toba_dhu...
kappal_toba_dhurr_ne_thook's picture

Actually, it is hard to buy Americano.  Not much to choose from IF anything at all.  A pity. 

Wed, 09/30/2015 - 20:53 | 6613880 kappal_toba_dhu...
kappal_toba_dhurr_ne_thook's picture

Actually, it is hard to buy Americano.  Not much to choose from IF anything at all.  A pity. 

Wed, 09/30/2015 - 20:28 | 6613774 22winmag
22winmag's picture

All funny-money foreign carpetbaggers must have their property declared the proceeds of fraud and their immigration status up to and including citizenship voided after the rebellion and the end of the Fed.

Wed, 09/30/2015 - 20:33 | 6613796 Dre4dwolf
Dre4dwolf's picture

The Chinese know how to play the game.

 

Wed, 09/30/2015 - 20:40 | 6613825 kiwigal
kiwigal's picture

In Auckland, New Zealand the same situation has arisen. The government has put in place a number of measures to stop this dirty money flowing into  real estate, one of which is that foreign purchasers must have a New Zealand bank account and tax number. Other measures are to follow,already Chinese purchases are dropping back. Australia has also brought in measures. I guess being smaller countries we have the capacity to hold our governments to more account.  New Zealanders and Australians are pissed off that foreign,dirty money is destroying our countries and making life impossible for the young generation,the older generation.

 

Wed, 09/30/2015 - 20:56 | 6613892 Son of Captain Nemo
Son of Captain Nemo's picture

It's a good thing to, because if they were back home the U.S. governemnt would be blowing them to pieces if they lived near industrial sites that manufacture chemicals...

But if I were the chink ex-pat living in Irvine I wouldn't be waving that American flag too much right about now!

And if you plan on visiting the folks back home make sure you don't sign anything that will enforce that you can't leave the U.S. in the event your "new host" wants to go to war with your Mom, Dad, sister and brother back home!

Wed, 09/30/2015 - 21:05 | 6613918 kappal_toba_dhu...
kappal_toba_dhurr_ne_thook's picture

I wonder how Americanos are going to react when most of the real estate in USA is finally owned by Chinese, Indians and other Asians and Asian-Americanos.  As Asian groups in USA increase, it will not naturally be a win-win situation. Yes, we Asians have brought a lot to USA, but many Asians, namely Chinese and (I'll admit) my fellow Indians in particular, are NOT good at mixing but instead we tend to segregate.  (Take a look at the India-towns and the China mega-cities that exist in USA today. They are NOT a sign of multiculturalism but a sign of segregation.)

Today in USA Chinese and Indians own A LOT.  We own row upon row of apartment blocks, shopping malls, companies, etc.  Yes, we do hire all sorts of people but for the most part we tend to hire within our own communities 

When we used to live in NJ, it was not uncommon to go do business with entirely Chinese- or Indian-owned businesses (and I am NOT talking about restaurants or grocery stores).   You see deekras (dears), once a minority becomes big enough it acts like the majority with all its discrimnatory attitudes.  Also as the community gets bigger and bigger the urgency to blend into the fabric of the host nation goes away. 

In the long run, unless this attitude changes, it will not be a good thing,  not good for the minority communities and not good for the nation as a whole.  People need to learn to mix with each other, hire each other, live with each other, learn with each other, and the excuse of the others "not knowing our language" should not be used.  

Unfortunately, I see another Canada-type situation in the making.  Canada has greatly reduced its immigrant intake for just this reason.  Inclusion should be the rule but exclusion will be the norm. Toba!

 

 

 

Wed, 09/30/2015 - 21:33 | 6614010 kiwigal
kiwigal's picture

It is human nature to stick with your own kind,possibly an inbuilt biological program for the survival of a group. I saw this very clearly at a kindergarten when my daughter was 3. The different races teamed up, they all spoke English,no one directed nor encouraged these groupings. 

Wed, 09/30/2015 - 22:10 | 6614146 nah
nah's picture

if you are asian you are in "or mexican or a meth manufacturing felon"

.

if you are my moms son lets not talk about it

.

ask the cops its their job

Wed, 09/30/2015 - 22:18 | 6614175 lakdaddy
lakdaddy's picture

Try coming to Sydney or Melbourne, Australia.

Q: Newly built home?
A: Chinese buyer.

Wed, 09/30/2015 - 22:31 | 6614220 magne13
magne13's picture

Its the same thing in my suburb of Chicago, all Chinese buyers, they don't even speak english! When you are allowed to print money what do you think is going to happen, this is how you take over  a country without using one bullet or bomb, the Chinese are in for the long haul, forget about a black president in 4 years it might just be Chinese....

Thu, 10/01/2015 - 01:38 | 6614611 GRDguy
GRDguy's picture

First the world experienced the Ugly American, now comes the Ugly Chinese.

Thu, 10/01/2015 - 06:01 | 6614815 Fireman
Fireman's picture

As the tsunami of Saudi Mercan dollah toilet paper washes up in USSA there are still some good real estate opportunities for paupered Mercans through Pentacon Kill Industries Realty in "liberated" Iraq and Afghanistan and Libya.

Thu, 10/01/2015 - 06:07 | 6614821 kaboomnomic
kaboomnomic's picture

They emigrates with wealth (got) from origin country. And they bought the overpriced "bubbled" house in US?

Well.. good to knows, they're about being transformed, into present day "kardhasian ass" generation soon.

 

Nice.. (karma's is a bitch, eh?)

Thu, 10/01/2015 - 07:07 | 6614909 ohBehave
ohBehave's picture

Please and welcome!

We need more people who aren't seeking socialized perks.   I'm happy to have people who have IQs north of 100, don't spend their time claiming victimhood, and actually have skills.

Do NOT follow this link or you will be banned from the site!