Foreign land ownership

[True Grit Farms]

land can't be moved and the banks should make sure the land value covers their debt. I suspect what folks are really mad about is the competition is making land prices higher and rents higher.

That's the biggest risk and its happened where we live in BC, Canada. I bought a house near the city with no land and paid $675k for it 10 years ago. Its now worth $1.5M. I bought an 8 acre farm about 1.5 hours out from the city 8 years ago. I paid $800k for it, it was just government accessed at $2M, I imagine it would sell for $3M. This all sounds good and dandy but no one can afford to buy anything. The average apartment outside of the city, 1 bedroom, rents for $2,000 a month! No one can afford to live. And this is all a result of the Canadian government allowing Chinese buyers to come in and buy up all our real estate. Once it corrects everyone that bought when the prices were high will probably go bankrupt. And we are slowly starting to see the correction happen since the Canadian government just put in high tax penalties for foreign buyers not living in the homes.

https://www.zerohedge.com/news/2019-06-02/domino-2-chinese-bank-105-bn-assets-verge-collapse
You might be right, everything isn't always the way it's portrayed.

 

[Cornfed01]

land can't be moved and the banks should make sure the land value covers their debt. I suspect what folks are really mad about is the competition is making land prices higher and rents higher.

That's the biggest risk and its happened where we live in BC, Canada. I bought a house near the city with no land and paid $675k for it 10 years ago. Its now worth $1.5M. I bought an 8 acre farm about 1.5 hours out from the city 8 years ago. I paid $800k for it, it was just government accessed at $2M, I imagine it would sell for $3M. This all sounds good and dandy but no one can afford to buy anything. The average apartment outside of the city, 1 bedroom, rents for $2,000 a month! No one can afford to live. And this is all a result of the Canadian government allowing Chinese buyers to come in and buy up all our real estate. Once it corrects everyone that bought when the prices were high will probably go bankrupt. And we are slowly starting to see the correction happen since the Canadian government just put in high tax penalties for foreign buyers not living in the homes.

https://www.zerohedge.com/news/2019-06-02/domino-2-chinese-bank-105-bn-assets-verge-collapse
You might be right, everything isn't always the way it's portrayed.

Are you insinuating that China is purposefully collapsing it's economy?

And that the Chinese weren't buying North American housing trying to shelter their worth from currency manipulation?

Fiat currency vs real assets. Can you purchase an equivalent acreage of land in equivalent 2019 dollars as in 1960 dollars? In 1913 dollars?

 

[True Grit Farms]

I think things are swinging in our favor and some don't like it.

 

[Douglas]

I think there is a difference between foreign ownership in general and Chinese ownership in particular. We should never forget they are a communist dictatorship and therefore they can never be fully trusted. They will make their people/businesses lose money for a while to destroy the competition. The don't play be the same rules as most other countries.

 

[Cornfed01]

I think there is a difference between foreign ownership in general and Chinese ownership in particular. We should never forget they are a communist dictatorship and therefore they can never be fully trusted. They will make their people/businesses lose money for a while to destroy the competition. The don't play be the same rules as most other countries.

They play by communist rules. What's interesting is how they came to power.

 

[Cornfed01]

 

[sim.-ang.king]

Just like it should be.