Taiwan news article on purchases of cheap real estate in LA & other areas

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momopi_IHB

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For those who are curious about what people in other countries are saying about the US RE downturn, here's a news article posted to MSN Taiwan News today on wealthy Southern Taiwanese wives coming to LA and buying real estate for investment. Scroll down for translated version in post 2 and 3:



<a href="http://news.msn.com.tw/news903969.aspx">http://news.msn.com.tw/news903969.aspx</a>



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????:2008/08/11 04:16



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??????YM America?????????????????????????????????????????????????????????????????????????????????????????????????????



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?????????????????????????????William Reveis ???????????????????????????????????????????????????????????????????????????????????????????????????????????????????



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???????????? 2008/08/11



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Google translated version, part 1:

(the translation is horrid, I'll try to edit)



<a href="http://64.233.179.104/translate_c?hl=en&sl=zh-CN&tl=en&u=http://news.msn.com.tw/news903969.aspx&usg=ALkJrhg-b1uOJj683L1Lr3JzTpTEFESQHw">http://64.233.179.104/translate_c?hl=en&sl=zh-CN&tl=en&u=http://news.msn.com.tw/news903969.aspx&usg=ALkJrhg-b1uOJj683L1Lr3JzTpTEFESQHw</a>



The people of Taiwan into the United States and the City cheap goods seized (Taiwanese marching into American Housing Market, big bargain-hunt)

????:2008/08/11 04:16 Update: 2008/08/11 04:16



?????????????????????????????????????????????????????????????????? U.S. real estate loan-to-dimensional crisis, is facing an unprecedented blow to many homeowners were forced to Jianmai house, more people unemployed or can not afford the mortgage, the house was Bank of recovery, even the fate of the auction. ????????????????????????????????????????????? And olfactory sensitivity of the Taiwan people have managed to enter the United States, the downturn in the housing market seized cheap, hope that the future economic recovery, can make a handsome income.



????LV?Ferragamo??????????????????????????????????????????? Carrying a group of LV, Ferragamo brand-name packets of Taiwan Guifu (Guifu = rich wives), a Los Angeles International Airport after Customs and saw several Chinese eagerly went up, followed by limousine to the hotel. ????????????????????????????????????????????????????????? These Caozhe Taiwan cavity Mandarin Guifu (er, group of wealthy wives wielding Taiwanese accents), southern Taiwan are the physicians mother (wife, not mother), accompanied with a huge sum of money in cash, in both English and Chinese that China and Italy also cheaper to see the mansion, under single-not soft.



???????????? The recovery of loan-to-house physician mother to buy several 20-dong (dong = Chinese word for housing units)



???????????????????????????????????????????????????????????????????? These physicians mother (edit: wife, not mother) in southern Taiwan since there is a club, the spending power of alarming, the United States have heard of goodies investment opportunities in the immediate inter-sister Amoy reported that the trip to the United States is looking for investment opportunities, tourism and the way procurement. ??????????????????????????????? In order to serve the real estate industry to the distinguished guest from those in the United States travel itinerary of all the hospitality room and board.



????????????????????? Niangmen physicians in the real estate industry, under the leadership of the banks look at the recovery house. ???????????????????REO????????bulky???????????????????????????????????? Unlike banks housing recovery, recovery of these banks estate (REO) is significant transactions (bulky), is to buy a 20, 30 houses, as is the entire batch of transactions, the price lower than the market price of a few.



?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? Because a house to buy too many of these banks and scattered housing recovery district, all of a sudden also Kan Buwan, Niangmen look at the two doctors (doctor's wives), three luxury flats, an area of several acres of luxury flats appreciate it, garden ponds , Swimming pools, tennis courts beautiful novel, comes with the indoor furniture are considered luxury top, a few women to Taiwanese discussion, the full Hao Qi said: "It was so decided, the rest of the houses do not have to read (look/inspect), we all Bought."



????????????????????????????????????????????????????????????????????????????????? Real estate brokers pleasant surprise, this 30-some houses are cheap although the sale price, but it is not cost-effective small number of the seller's bank priced at more than 5 million U.S. dollars, because the bulk of bank recovery estate transactions, there is no room for bargaining, it is also necessary Cash transactions. ????????????????????????????????????????????????? But on the Taiwan issue is not your mother's physician, on the plane before the cash requirements of the documents have been??the spot said Maijiu Mai, the U.S. bank is impressive.



???????????? The delegation flooded many people Technology



???????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? This mission is flooded home, quietly Taiwan's money flows into the U.S. housing market, in addition to the south of Guifu corporations, the Hsinchu Science Park technology upstart, a listed company bosses, the northern part of a construction company, the electronic media industry has all groups to America West, read a batch after batch of bank housing recovery,?????a computer, calculate: rental income, expenditure management fees, bank interest rates in Taiwan, the Taiwan dollar and U.S. dollar exchange rate.



???????????????????????????????????????????????????????????? Kanfang mainly of men to act more cautious corporations, often Zuo Si right test, some listed companies is the boss Aodao Finally, before Shi Shi Ran shots, but Henpa be aware, as highly confidential. ???????????????????????? Some people are not always under the hand, wait until after the time, before-and remorse. ????????????????????????????????????????? In the observation of the U.S. banking industry, the physicians in southern Taiwan to act??mother, relentless and quasi-investment perspective, the boldness of vision, most people fear.



?????????????????????????????????????????????????????????????????????????????????? Taiwan Association of the United States Li Bingxin, vice president of real estate brokers in Los Angeles in 13 years, the housing market dynamics rather sensitive, when most of the real estate industry, Xiaoyue when he was active team operations, Bingfenlianglu in Taiwan, two in Los Angeles Mission plans to Kanwu.



???????????????????????????????????????????????????? Li Bingxin said that because Taiwan flew to California to the eastern U.S. time than shorter, the people of Taiwan investors in the United States and the West purchase more interested, but also more convenient to see, care. ??????????????????????????????????????????????? In this wave of the housing market to collapse, the most fierce and Los Angeles real estate fall, about 20% to 30% between Fapai Wu also abound, like jumping off a building big auction.



??????????????????????????????????????????????????????????? Fapai Wu purchased a considerable constraints, the people of Taiwan by non-US citizens in the United States Yiduo no credit history, it is difficult investment Fapai Wu trading, but banks are not recovered by this limited housing.



???????????? U.S. housing market downturn Fangzhong Meng sea promotions



??????????????????????????????????????????????????????????????????? Bank of the so-called recovery is homeowners pay no estate mortgage, banks long time-consuming court auction, the auction price may not be able to make up for loans, the bank as the case is now seeking the release housing, so the price is lower than the market price. ???????????????????????????????????? Bank of recovery in housing transactions, again pressed by the minimum price of bulk transactions, overseas investment is a good opportunity for people.
 
Part 2:





??????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????? In addition to housing the bulk recycling bank transactions, the Los Angeles area there are many sporadic Taiwanese investment in real estate, living in Taipei's Shi Yifan in after her husband died, as a housewife in her future life issues to consider, first of 2000 Multi-million Taiwan dollars to sell the house, and then buy in Taipei between the State House for her and two daughters live, with 7 million Taiwan dollars to buy a small apartment rental in life. ?????????????????Chino?????????????????? The remaining money, in Los Angeles outside the Chino (Chino), and his sister bought a joint venture between the four of the Office of the two houses.



???????????? Landlocked cheap price Montreal few people to buy luxury flats



?????????????????????????????????????????????????????????????????????????????????????????????????????? Shi Yifan bought the house in the new community, originally built to cover too many, too many Maibuchuqu backlog, because prior to earn money, so I housing on the way to the scene outcry auction, the price of a house for 480,000 U.S. dollars, 35,000 U.S. dollars (the market value or asking price was 480k, it was sold for 305k) turnover last 30, because his sister in the United States have credit and then to bank loans. (the buyer's sister has established credit in the US and applied for the loan) ?????????????????????????????????????????? Bought the house to rent out the first month (after purchase the house was rented on first month), the monthly rental of 1,850 U.S. dollars, sufficient to cover the community management fees, loans, taxes, and so on.



?????????????????????????????? She??investment house, is optimistic about future economic recovery, such as the city turned the cash in the future.



??????????????????????????????????????????????????????????????????????? In California, with San Francisco, because if prices do not decline in Los Angeles so much, Fapai Wu bank or a limited number of housing recovery, the local real estate transactions are not taking mass line, only for the market to Taiwan passengers Lianshou housing market.



?????YM America?????????????????????????????????????????????????????????????????????????????? San Francisco, "YM America" for the people of Taiwan by the establishment of business projects including real estate agencies, the responsible person Cai said that her company is also at Taiwan, the U.S. team operating the two groups, responsible for Taiwan's team in the print media advertising, in the streets of Leaflets, and answering the telephone Wenjin. ??????????????????????? The U.S. team, with Taiwan buyers see a house, contact the banks and lawyers.



??????????????????????????????????????????????????????????????????????????????????????????????????????????? Cai said that in response to the Silicon Valley near San Francisco, intends to buy the property to the people of Taiwan for more than Caryophyllaceae, STSP the upstart technology, such as Hon Hai, a subsidiary of staff, etc., they want the U.S. housing market downturn to buy inexpensive The house, more for the future use of children to the United States to study, or their own retirement later, bought temporarily rent.



???????????????????????????????????? Not long ago, an upstart Taiwan's technology to more than 700,000 U.S. dollars, in the urban area of San Francisco bought a two bedroom apartment. ?????????????????????????????????????????????????????? In the United States can not loan, the buyer is also suspected of U.S. interest rates too high, so all the cash to pay the monthly rent apartments to be three to 4,000 U.S. dollars, is a good investment.



????????????? New York is not rare or seldom-up buyers in Taiwan



???????????????????????????????????????????????????????????????????????????????? The technology people bought happy, Cai in the introduction, have spent more than 10 million dollars (edit: actually it means 100k-some, which could be 120k, 140k, etc), of Phoenix, Arizona to buy a house, few people in Taiwan generally in-depth U.S. inland home, in fact, the central and western Houses fall even worse, Montreal Jianmai mansion.



??????????????????????????????????????????????????????????? In the east coast, prices in New York contrarian or not the anti-inflation, housing prices in Manhattan in particular is amazing, the people of Taiwan if the money is not the Middle East, the Europeans, the Manhattan housing market uncommon for traces of the people of Taiwan. ????????????????????????????????????? Taiwan origin real estate agencies Miss Li said that she had not done for months a deal, which in the past six months Zuochishankong.



???????????? Way too far eastern United States if America West is not in demand



????????????????????????????????????????????????????? Although housing prices in the eastern United States have been laid down, but many suspected the people of Taiwan to travel by plane for too long, not-to the eastern U.S. investment, but if special geographical factors, Taiwan's money will flow like come.



????????????????????????????William Reveis ???????? Greater Boston Chamber of Commerce chairman of Taiwan's Hsu Shu-hing, a senior broker premises, in Switzerland than disabilities (William Reveis) service real estate companies. ??????????????????????????????????????????????????????????????????????????????????????????????????????????? She, for example, this summer, a Taiwanese mother to accompany her daughter to travel in Boston, the Boston, Cambridge mother to see the house is very beautiful area, Harvard University, Massachusetts Institute of Technology and other schools are in the vicinity, moving the idea of a purchase And must pay in cash to buy here in the beautiful house, the daughter of the future will inspire students to enter elite schools.



??????????????????????????????????????????????? Another parent far from Taiwan arrived in Boston to help his son bought a two-bedroom luxury apartments, including parking spaces, priced at 500,000 U.S. dollars. ?????????????????????????????????????????????? Their only son graduate from the Massachusetts Institute of Technology, is now available in Boston to find work, anxious parents love children, so the money to buy an apartment given to her son. ???????????????????????????????????????????????? If the apartment rental, the monthly income between 3,000 to 3,500 U.S. dollars, whether for personal use or rental to the purchase of NT, are very cost-effective investment. ????? (Series 1)



????????????2008/08/11 The news provided by the Times reported 2008/08/11
 
It's interesting to note the stereotypes at work. In the US we have the "wealthy Asian buyer" stereotype, in Taiwan it's "wealthy Southern Taiwanese" (from places like Kaohsiung), and to top it off, doctor's wives with their private social club, invading Los Angeles with wads of cash and buying 30-40 homes with cash for investment. Doctors in Taiwan actually don't get paid that well, but it's assumed that wealthy families can afford to send their kids to med school.



However, articles like this are read by millions of Taiwanese, and informs RE investors of potential opportunities here in LA. "Orange County" is not well known and many people overseas refers to this area of Southern CA collectively as "Los Angeles".
 
Suprisingly, The whole Rich Foreign China Man that Panda once thought existed is only a myth, not a reality. I stopped by the Villa Rosa sales office in Woodbury and I asked this lovely Villa Rosa Sales Lady, "How many of the 20 homes were 100% cash buys and she told me that there were several. Then I said, "Let me guess, these are all the Rich Foreign Chinese buyers right?" The sales lady told me that only 1 of the 20 homes was bought by a foreign asian, and I was like "Are you telling me the truth??"



The sales lady also told me that most of the homes were bought by local U.S. residents living in Southern California. Again, most of the 100% cash buys were by local Southern California residents, not by the Rich Foreign China Man that Panda once believed. So I guess Graph was right telling Panda that the Rich Foreign China Man buying up the Irvine homes is a Myth, and NOT REAL.



My genuine apologizes to all the Rich Foreign China Man that Panda accused of buying up all the inventory of Irvine homes and not allowing the prices to fall.



Panda
 
[quote author="momopi" date=1218499502]Doctors in Taiwan actually don't get paid that well, but it's assumed that wealthy families can afford to send their kids to med school.



However, articles like this are read by millions of Taiwanese, and informs RE investors of potential opportunities here in LA. </blockquote>


Well, it's my understanding that with the national healthcare system, there is really not as much money for the doctors as before. (Other then surgeons who get "red envelope" for surgeries or doctors who own their own clinics and earn a lot from the affiliated pharmacy, etc.)



Back in the days, it's supposed the rich Taiwanese families prefer to have doctors as their son-in-laws. At least that's the trend in my parent's generation. I don't think that's really the case any more. Both those doctor's wives are mostly likely spending money from their own families.



I don't doubt they exist. But I don't believe there are enough of them to make a difference.



I am also amused by the Manhattan real estate broker who haven't closed a deal for half a year. I can see that happen in California soon.
 
[quote author="PANDA" date=1218618853]Suprisingly, The whole Rich Foreign China Man that Panda once thought existed is only a myth, not a reality. I stopped by the Villa Rosa sales office in Woodbury and I asked this lovely Villa Rosa Sales Lady, "How many of the 20 homes were 100% cash buys and she told me that there were several. Then I said, "Let me guess, these are all the Rich Foreign Chinese buyers right?" The sales lady told me that only 1 of the 20 homes was bought by a foreign asian, and I was like "Are you telling me the truth??"



The sales lady also told me that most of the homes were bought by local U.S. residents living in Southern California. Again, most of the 100% cash buys were by local Southern California residents, not by the Rich Foreign China Man that Panda once believed. So I guess Graph was right telling Panda that the Rich Foreign China Man buying up the Irvine homes is a Myth, and NOT REAL.



My genuine apologizes to all the Rich Foreign China Man that Panda accused of buying up all the inventory of Irvine homes and not allowing the prices to fall.



Panda</blockquote>


That sales lady just jeopardized her Real Estate license. As she can not answer any questions regarding race or ethnic background in any conversation as she is discriminating.
 
[quote author="OCCOBRA" date=1218773389]



That sales lady just jeopardized her Real Estate license. As she can not answer any questions regarding race or ethnic background in any conversation as she is discriminating.</blockquote>


C?mon now, she obviously knew that Panda was a tire-kicker the minute he walked thru the door of the sales office.

She was probably just humoring him and didn?t want seem rude by directing him to the lower end condo development in VOC, which matches his budget.
 
[quote author="momopi" date=1218499502]



However, articles like this are read by millions of Taiwanese, and informs RE investors of potential opportunities here in LA. "Orange County" is not well known and many people overseas refers to this area of Southern CA collectively as "Los Angeles".</blockquote>


I really dislike the Taiwan newspapers. It's amazing how they stretch things and base articles on rumors. My mom (and the many other Taiwan/Chinese-born Americans) read it like truth, and constantly call me to tell me that I can buy a house in "LA" for 60% off. It's a bit frustrating because many of the Irvine sellers are still smoking crack.
 
[quote author="cantaloop" date=1218778571]

I really dislike the Taiwan newspapers. It's amazing how they stretch things and base articles on rumors. My mom (and the many other Taiwan/Chinese-born Americans) read it like truth, and constantly call me to tell me that I can buy a house in "LA" for 60% off. It's a bit frustrating because many of the Irvine sellers are still smoking crack.</blockquote>


It's their job to give you unwanted advice in which they're not qualified to give. Comes with the "Asian parents" package. LoL.



In Taiwan the "freedom of press" package also comes with ambulance chasers, who'd run into the hospital emergency room after accidents, in hope of recording some bloody footage with crying relatives, so they can broadcast it on the news over and over again for rest of the day. It's also a problem when you have too many news stations and not enough news.



My Starcraft friends in South Korea once told me that they have a serious problem with too many newspapers. They'd open their door to find bundles of unwanted newspapers that they didn't subscribe to.



I think you'd find that prices in Irvine is beginning to fall through small cracks. Wait until late 2009.
 
While US RE market is tanking, oversea markets in SG is booming:

http://www.littlespeck.com/content/economy/CTrendsEconomy-070729.htm



Property prices

The heartland moves

Choice HDB flats being offered at prices not far below those of private suburban condos.With comment. By Seah Chiang Nee

Jul 29, 2007



THE property crunch has been intruding into Singapore?s heartland, where the vast majority of people live.



Since the past year, values of resale Housing Board (HDB) flats, which can be bought only by citizens and permanent residents (including many Malaysians), are becoming more expensive in the wake of rising demand.



With rents in the private condos escalating ? by 30% or more ? a growing number of expatriates are moving into these public apartments, pushing up rents to a 10-year high.



This is beginning to hit young professionals who are starting off in life. They usually buy a flat on the open market before they get married in order to be able to select a location they like.



In some places, runaway prices have put off plans to own a resale apartment.



A recent example is the couple who waited for a year to buy one at a choice site only to find that the price had gone up by a third or S$118,000.



Marketing executive Zubaidah Salim, 25, and her software engineer fianc? turned down an offer to buy a five-room resale HDB flat for S$349,000.



Now when they are ready, the price is S$467,000.



?We feel like kicking ourselves for not buying (it) last year. Resale prices are so high now that I don?t think we?re able to afford a five-room flat anymore,? she told The Straits Times.



For expatriates, it?s even worse. When their private condo leases expire they have to fork out rental increases of 33% or more, depending on location.



?Our lease is coming up in two months, and the landlord has asked for a 100 per cent rise in rent,? said a posting in ExpatSingapore.com. ?I laughed but after many depressing weekends, I?m not laughing any more,?



At the Bayshore Park condominium, which is popular with foreigners, monthly rents for a two-bedroom unit have doubled to S$4,500 from a year ago.



Singapore is now the eighth most expensive city in Asia in terms of housing costs for expatriates, says a global human resources firm.



?The owners are getting greedy. It?s really a landlord?s market right now,? said a property agent.



Singapore?s residential property is facing a crunch that could worsen in the next few years under the weight of a large inflow of foreigners and a resurging economy.



About 85% of Singaporeans live in HDB estates, which have for decades been the government?s showcase of achievements.



This has made housing costs much more bearable for its people in this land-short, high cost city.



(Only citizens with a monthly household earning of S$8,000 or less can buy one but foreigners with PR status can purchase one on the resale market.)



During most of the past decade, Singapore?s real estate has been in a state of general neglect, languishing after a 35% drop in the mid-90s.



This recovery has raised the value of people?s assets. This is good news for Singaporeans, who have the world?s highest proportion of homeowners. Nine out of ten residents own their apartments.



There is, however, a downside for those who don?t own one. Prices of newly completed ones sold by the Housing Board have also been creeping upwards but at a controlled pace over the years.



But since it is only available after a wait of several years and in places that people don?t like (many who plan marriage wish to live near their parents or workplace), they often buy one in the dearer resale market.



These days, the preferred blocks closer to the city centre are offered at prices not far below those of private suburban condos.



The government is faced with a dilemma. It wants to see people?s asset values rise, but only gradually, not excessively, which could prevent young people from buying a home.



The recent en bloc frenzy is seeing thousands of displaced owners seeking an alternative flat. Flush with cash, some turn to the resale HDB market, adding to the demand pressure.



A three-bedroom HDB flat was sold for a record S$675,000 (RM1.5mil); a week later another fetched S$720,000. As a result, other sellers have generally been demanding exorbitant prices.



Why the sharp jump, and will it last? It is caused by a large influx of foreign workers and a strong economy.



Since 1990, the population increased by a phenomenal 62% from 2.7 million to 4.5 million, one of the fastest rates in the world.



Last year alone, the government granted PR permits to 58,200 and citizenship papers to 13,900 foreigners.



In the next five years, at least 240,000 PR permits and citizenship papers will be issued, which will further exert demand on the supply chain.



The government is rushing to build 42,200 more private homes between now and 2010 but economists believe this will not be enough.



A Citigroup report said the property supply crunch was likely to get worse in the next four years despite these assurances. Its analysts said that units under construction suggested a potential shortfall.



Over the long term, demand for real estate in Singapore, which measures only 650 sq km, will always outstrip supply as long as there is stability and growth.



Its ambition is for a 6 to 7 mil population in 30-40 years? time. This means a million new homes will have to be built.



(An expanded version of article published in The Star on Jul 28, 2007)
 
OMG momo! You just posted what real estate is like when there is not enough supply for the demand. Gasp! That crazy econ 101 everyone forgot here in OC.



Can you do the hi-rise homebuilders in OC a favor, and forward that article to them as well as the below 1% population growth stats for OC? I doubt they will get it, but it is worth a shot.
 
[quote author="OCCOBRA" date=1218773389]



That sales lady just jeopardized her Real Estate license. As she can not answer any questions regarding race or ethnic background in any conversation as she is discriminating.</blockquote>


I don't know what you mean. The term is "demographics" and it's frequently discussed with realtors and salespeople when discussing home purchases. There is nothing discriminatory about stating facts and numbers.
 
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