China’s real estate sector was long seen as a vital growth engine in the world’s second-largest economy and accounted for as much as 30% of the country’s GDP. But Evergrande’s 2021 default sent shockwaves through China’s property markets, damaging homeowners and the broader financial system in the country.
damaging homeowners and the broader financial system in the country.
Or, showing that current homeowners overpaid, opening the door to new homeowners and allowing the broader financial system to have losses we all knew were possible.
Its fucked, no way around it. Property bubble has already exploded with a whimper, thanks to CCP censorship. Chinese households are now extremely wary of trusting their money to others and aren’t gonna be buying homes until the next (unsustainably small) generation.
Curious to see if there is going to be a domino effect with their real estate companies.
China Gardens, the largest real estate company, is toppling (article is from a week ago and those payments still haven’t been made) and at least one of China’s largest “Shadow Banks”, Zhongzhi Enterprise Group, is going with them.
The dominoes aren’t going to stop; Evergrande, Country Gardens, and Zhongzhi Enterprise Group are just the first visible ones.
They need to word these laws that owning residential property without living in them incurs a massive tax or is prohibited altogether. This is why housing for so out of control in parts of Canada like Vancouver.
Someone tries to attack a Republican politician and they throw the book at her (and rightfully so, that’s not how you should handle these things).
What happens when Republicans are the criminals and attack the capitol? They get a slap on the wrists. These J6 traitors should be facing 10 or 20 years in prison like the twat in the story, but of course Democrats are too cowardly to ever set some severe punishments.
Florida has no place in deciding "national security issues" in who to sell property to near military bases. That is absolutely a federal prerogative. Federalist society Trump judge over-reach here. (Just so my politics don't get too confused though: I'm a socialist and would actually support taking this property from rent seeking landlords.)
This isn't just regulating interstate commerce. It's regulating international commerce, based on countries that are a "threat" and centered around federal military land.
That's explicitly not what the law is about, nor what they're arguing to the judge. There's a reason why selling to Chinese nationals has a larger penalty and it's not to protect the housing market. The injunction should've been granted just because it creates real measurable harm due to racism, independent to the fact that it is a law that is blatantly out of Florida's scope.
I understand your math but I think the better view would be “what are the monthly payments at each point in time (no inflation) and how many of hours of work per month based on the median income of the time?”.
Based on that the 1980 house would have a payment of $731/month. Median income was $21,020, which is about $10.11/hour. So it would take about 72 work hours a month to pay for a home.
The current rates yield a monthly payment of $3,107. Median income is $56,940, which is about $27.37/hour. So now it would take 113.5 hours a month to pay for a home, an increase of almost 57%.
To make it even worse, there are usually only 160 work hours a month, so that means you have to work 71% of a month just to pay for an “average” house and mortgage. I’m not even factoring in taxes or any other expenses.
A florida law I actually agree with. In my area, 40% of home purchasers are Chinese nationals looking to park their money outside if China. No American can afford to buy a home and they’re using our houses like a piggy bank.
Same is happening in major Canadian cities too. Has completely destroyed the housing market. There’s other factors as well but that’s not helping at all.
There was probably an element of anti-asian racism as the impetus of the law, but it also addresses an actual problem, so eh?
Now, if they could ban owning more than two homes, that would be nice. I'd even limit the number of apartment buildings a corporation could own, Maybe one apartment complex per city. Or maybe per state.
That's where we get into sunshine laws that mandate that all companies must disclose who owns them, and list that owner as part of the paperwork for all company property, and then use that to deny ownership of multiple homes/apartment complexes.
We should have such sunshine laws anyway. It would prevent a lot of issues.
Even though the bill targets people from multiple nations, the statute imposes harsher punishments for Chinese people. In any transaction with a “foreign principal of China”, the Chinese buyer could face five years in prison and $5,000 in fines; the seller could get a one-year sentence and a $1,000 fine.
Gabriel Chin, a law professor at the University of California, Davis, said this latest trend follows a long history of “alien land laws”. Many federal and state laws used the phrase “aliens ineligible to citizenship”. That was a euphemism, referring to Asians legally entitled to remain in the nation but forbidden to become citizens because they were not white, until a 1952 reform. For example, the 1859 Oregon state constitution protected “white foreigners” who wished to acquire property but prohibited any “Chinaman”.
Florida’s alien land law was only repealed in 2018, making it the last state to do so. Chin led his students in an effort to undo similar laws that remained on the books.
“In Florida, it took a very long time,” he said. “We brought this to the attention of the Florida legislature in 2001,” but “it was a very tricky problem because the [ineligible aliens] provision was in the Florida constitution.”
In regards to the new law, Chin added: “It would be one thing for Florida to provide that only citizens could own land. But for them to pick and choose among favored and disfavored groups is problematic.”
If they are really against “foreign entities” just make a blanket ban against all non citizens. Why pick and choose which specific one?
Now, every time someone wants to sell a house, and they see a buyer with East Asian Appearances or have an “Asian sounding name” They’d be afraid so sell the property fearing violation of law. This can cause sellers to just avoid selling to anyone who “looks Chinese”.
I concede. Still, there remains a problem of houses being snatched up by corporations, able to outbid any individual, and leaving nothing to actually buy, only rent from the very corporations buying everything. Yeah, we should apply this law to “foreign entities”, as a blanket rule, but there still remains the American corporations doing the same thing.
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