Rich Foreigners Buying Up NYC Real Estate Properties

Yes, WIT, not a new phenomenon, this goes on all over the country, they're doing as much right here in my little neck of the woods, laying down cash money for lots of property, we hear the stories of the wealthy foreigners buying up our town every few months or so. Can't say if that's any better or worse than the native venture capitalist that buy up all the real estate, remodel, change the tax codes of the neighborhood and cause prices to be jacked up till the locals, born and raised in an area find they no longer can afford to stay put.
 

They might be surprised the next time the housing market goes kaboom ... actually that would be sweet revenge.

That's what I'm thinking. My only thing would be tax exemptions for foreigners or corporations which apparently are being used to buy much of the property. Many are crying lack of transparency and money laundering. But until there is evidence of a crime should we do anything other than plug tax loopholes.

http://gawker.com/foreign-money-hidden-behind-shell-corporations-gutting-1684426317

Let's face it, money launderers built up plenty an area South Florida being the prime example. And along with money laundering south Florida has had a huge surge in European investors/buyers during/since the boom years so it's not just money laundering criminals.
 
That's what I'm thinking. My only thing would be tax exemptions for foreigners or corporations which apparently are being used to buy much of the property. Many are crying lack of transparency and money laundering. But until there is evidence of a crime should we do anything other than plug tax loopholes.

http://gawker.com/foreign-money-hidden-behind-shell-corporations-gutting-1684426317

Let's face it, money launderers built up plenty an area South Florida being the prime example. And along with money laundering south Florida has had a huge surge in European investors/buyers during/since the boom years so it's not just money laundering criminals.

You better believe the laundering is still going on, but, I'm going to leave that alone, I prefer not to sleep with the fishies.

A lot of the realtors that are doing the first buys and selling off the properties are a tinsy bit more savvy this time around, they waited till the bottom dropped out to purchase these properties, snapping up foreclosures selling many of them to foreign interest who are paying cash. But also, with many of the Boomers retiring and a lot of them to warmer climates, mainly the ones coming this way, meaning to this part of FL, have the means to afford the homes without worrying about their finances. It's usually the top percent flooding this market, the ones that aren't well off, learn their error fast and have to sell fast. This isn't an area to look to if you want an affordable retirement for the average non 1-percenter. Much of Florida isn't affordable, for those looking for low cost retirement, at least not like it once was considering more and more people are crowding the market here. I certainly can't afford this particular area for too much longer I'm in the bottom percentile, just very frugal and can squeeze jc out of a fig. There are affordable areas, but, there's often little room for newcomers..
 
You better believe the laundering is still going on, but, I'm going to leave that alone, I prefer not to sleep with the fishies.

A lot of the realtors that are doing the first buys and selling off the properties are a tinsy bit more savvy this time around, they waited till the bottom dropped out to purchase these properties, snapping up foreclosures selling many of them to foreign interest who are paying cash. But also, with many of the Boomers retiring and a lot of them to warmer climates, mainly the ones coming this way, meaning to this part of FL, have the means to afford the homes without worrying about their finances. It's usually the top percent flooding this market, the ones that aren't well off, learn their error fast and have to sell fast. This isn't an area to look to if you want an affordable retirement for the average non 1-percenter. Much of Florida isn't affordable, for those looking for low cost retirement, at least not like it once was considering more and more people are crowding the market here. I certainly can't afford this particular area for too much longer I'm in the bottom percentile, just very frugal and can squeeze jc out of a fig. There are affordable areas, but, there's often little room for newcomers..

I always felt Florida and other tourist states in particular are haves and have nots with little middle ground. This festers property sales and prices like we're seeing in NYC.

Speaking of boom era purchases in Florida Condo Owners are being forced out/ to sell at losses if an owner wants to turn condo units into apartment rentals. The boom destroyed old south/tourist living south Florida where you could still live cheap.

http://www.dailykos.com/story/2015/02/07/1362955/-Florida-Condo-Law-allows-private-seizure-of-condos

Hate to admit it but the original Ali Jazzera article was pretty good. That being said over development/over pricing has hurt NYC as well, much of which is the same scenario you described.

People who rent cannot afford a rent increase nor the owner who cannot afford to sell at a loss are the ones getting hurt.
 


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