Chinese tours groups go house-hunting in U.S.

[WhiskeyGirl]

The cash-rich visitors are looking for bargains in the plunging market. The trips are part of a broader trend of individuals and businesses in China seeking greater investment opportunities abroad.

By Don Lee and David Pierson

7:45 PM PST, December 6, 2008

Reporting from Los Angeles and Shanghai -- Caravans of cash-rich Chinese in Hummers and Lincoln Navigators have been weaving through American neighborhoods in recent months, looking for foreclosures and other bargain properties to buy.

With housing prices crashing in the U.S., home-buying trips to America are becoming one of the more popular tour group packages in China. ...

The 48-year-old owner of a media company went on a two-week road trip through the U.S. last fall, visiting scenic sites and checking out properties from Los Angeles to New York. He's been following the swoon in prices ever since, and next month he's considering joining another prospecting group that is heading for San Francisco, Los Angeles and Las Vegas, three of the hardest-hit housing markets in the U.S.

Zhao's budget: $1 million.

"Now because of the financial crisis, ordinary people in China also are starting to make large purchases in the U.S.," Yuan said. "In the past, people who traveled to the U.S. might carry back a large luggage with American goods. It's just that this time, what they bring back are [papers showing] hundreds of thousands of dollars of a house."

http://www.latimes.com/news/local/la-fi-chinahomes7-2008dec07,0,7107830.story?page=2

A nation of houses that will remain empty.  Maybe citizenship will be for sale to? 

[LouiseVargas]

Why would those houses remain empty? If they are owned, we have no control over what the owner wants to do with them.

Please explain if I missed the point.

[WhiskeyGirl]

Why would those houses remain empty? If they are owned, we have no control over what the owner wants to do with them.

Please explain if I missed the point.

Are they being purchased with speculation in mind, no intention to live there?  IIRC, the US doesn't limit foreigners to partial ownership schemes like many other countries.

I recall that many complained during the mortgage scandal of homes that remained empty for years, just being sold and resold.  Why would anyone have to ever live in a home?

Are foreigners able to just up and move to the US without making some kind of request for citizenship to live here for periods of time time, say longer than a visit?  I must be behind the times.

Does any community have an interest in homes that remain vacant and may attract crime?   Do communities have an interest in maintaining rental stock to community standards?

The other concern, does any community have an interest in ensuring that money used to purchase these homes is not being used to enable domestic or foreign person to launder money?  Maybe avoid taxes in their country of origin? 

Does the US have a moral, ethical, and legal responsibility to keep track of these homes (and other assets) and report them to the country these people are from? 

It seems that some, want to hunt down assets stored by Americans in foreign locations and expect cooperation from foreign governments.  Should the US be keeping track of US assets and notifying foreign governments as to the assets stored in this country?

[LouiseVargas]

Thank you Whiskey Girl,

Again, as far as I'm concerned, if the homes are legally owned, we have no control over what the owner wants to do with them.  People from all around the world can purchase property in the US.  I used to work for a real estate "boutique" where my boss would travel back and forth to Asia and shuttle Chinese investors around to see businesses, houses, and whatever in Los Angeles.  Once bought, the house belongs to the buyer.

Sorry if I missed the point again. 

[WhiskeyGirl]

Thank you Whiskey Girl,

Again, as far as I'm concerned, if the homes are legally owned, we have no control over what the owner wants to do with them.  People from all around the world can purchase property in the US.  I used to work for a real estate "boutique" where my boss would travel back and forth to Asia and shuttle Chinese investors around to see businesses, houses, and whatever in Los Angeles.  Once bought, the house belongs to the buyer.

Sorry if I missed the point again. 

What I have found interesting is that in other countries, foreigners must have a domestic partner to own businesses and real estate.  I imagine that is a popular model for some very good reasons. 

Utility bills are used in some places to register to vote.  Does a utility bill prove citizenship?  I do not believe it does.

Vacant homes, buildings, and other real estate are known to become magnets for crime.  In many places, they are condemned and torn down by the local government.

I think the US should start leveling the playing with our international trading partners.  In some countries, IIRC, if you want to sell your products, they REQUIRE local investments - no ifs, ands, or buts allowed.

Isn't it possible that some foreigners are forbidden by their government to own property overseas?  Maybe they are avoiding taxes at home?  Tax evasion?

I seem to recall that the Obama folks are interested in bank accounts owned by Americans in places like Europe and the Caribbean.  For some reason, they are certain Americans are avoiding taxes, or laundering money.

Isn't it possible to avoid taxes and launder money when foreigners invest in the US?

Isn't it possible they are knowingly or unknowingly aiding vote and registration fraud?

Is a utility bill proof of citizenship?

[LouiseVargas]

Why are you bringing Obama into this topic?  Chinese tours groups go house-hunting in U.S.           

[WhiskeyGirl]

Why are you bringing Obama into this topic?  Chinese tours groups go house-hunting in U.S.           

Obama is the man.  Based on many things I've read -

He is going to fix things, make sure people don't evade taxes, cheat on taxes, and has an interest in working with other countries to make sure ALL Americans are paying their fair share.

I truly do not know what foreign ownership in this country has been in the past, and what the tax burden is.  However, if Obama can snoop overseas for American money, I would hope he would cooperate with other governments to ensure that their citizens are paying their fair share at home to.

I hope this and other things will bring citizenship to the forefront.  How does one verify citizenship?  A utility bill?  A birth certificate issued as a courtesy?

The era of the Global Carpetbagger continues...[/b]