This is why I think here in Denmark the law against non-residents buyng residential property is sensible. If you don't live here, why do you need to buy property here?
@ Gregory Glen, it's called investment. Some country would like other nationals to bring in money through any investment. I think Sweden has a great welfare safety net, so you guys don't care about it.
I’ve watched your videos lately and came across this older one. Can’t help but notice the huge evolution and growth you’ve accomplished. Both as writer and TH-camr. Congrats
Based in the order of most money Chinese dirty money invested into real estate, 1) Orange county, 2) Los Angeles county, 3) New York City, 4) San Francisco Bay Area, 5) Seattle area, and 6) Boston area. Within the San Francisco Bay Area, there were more dirty Chinese that flooded into the city of Cupertino than San Francisco city since 2009.
Another mark of something fishy is largely unoccupied high-priced real estate. In the north of Miami Beach, there are ordinary condos on the intercoastal side of A1A, and there are new high-priced high-rise condos on the ocean side. At night, most of the lights are on for the ordinary side, and mostly off for the ocean side.
China being as rich as it is, obviously has a lot of money flowing outwards this way. However, many other poor countries in Asia and Africa also have significant wealth being transmitted in a similar way (especially compared to how poor they are). It is very obvious that rich cities and rich states have no incentive to investigate stuff unless local individuals are impacted and protest. It is safe to say that cities like London thrive on dirty money from many places (Russian Oligarchs, Indian fugitives, African warlords) to keep their real estate super expensive and maintain their aura. You cannot expect global cooperation to significantly move ahead because ultimately not everyone will benefit from the outcome and business as usual is what many players in this system want while maintaining their illusion of being great democracy, equitable cultures in a first world country.
China is not that rich. I mean yes, it's in pace to become the biggest economy, but it's also the most populous country. On a per capita basis China is still at the level of South American countries so even to them this capital flight is a serious problem (we have the same problem in SA by the way). In more way then one, under the current system, wealth just get funneled into the first world.
@@lcg3092 There are a lot of Chinese 'businessmen' with huge amounts of cash they urgently need to transfer out of China and transform it into 'clean' equity. Of course the Chinese population taken as a whole isn't rich, but we're talking about that minority who are. Like Russian oligarchs, successful Chinese businessmen are quickly disappearing one way or another.
@@franc9111 Agreed, and the best part about China is that different than in the US,Russia,EU, they often dissapear into the justice system. While I'm a not a big fan of capital punishment, that's the case I have the least amount of problem with.
It would be really interesting if you could do a second video looking at how Macau and Hong Kong are a linked, fixed, US dollar system intentionally designed to allow for US dollar offshoring of funds. Obviously, this could all be done away with a critical eye being brought to the HKD USD peg. Another really interesting video would be the “Insurance” industry in HK and its role in offshoring money. Love your videos man, I’ve only found your channel in the past week, one hell of a body of work. You have a long term viewer no question.
You should combine this video with information about FATCA and CRS. Also, updating the information where most of the dirty money are located, for example, mostly in Orange county.
Of course we should do everything we can to stop money laundering -- especially around drug trafficking and human trafficking -- but whatever fraction of China's mass capital flight that's legitimate should definitely considered foreign direct investment and carefully handled, because anybody with a large amount of money within China understandably wants to get their money out of China as soon as possible. Australia's relatively recent regulations are pretty smart: We have no restrictions on foreigners purchasing *new* buildings. If you buy a vacant plot of land you must build a dwelling within 4 years (you can't just buy it and hold it). You can only buy and demolish an existing dwelling if you build more buildings than were previously there. Finally, real-estate investment no longer contributes to gaining citizenship. All these things are good because they encourage *increasing* the housing supply which means housing is more affordable. I know that some places (I believe Vancouver and maybe London) tax empty houses and apartments which should encourage them to be placed on the rental market instead of the cultural preference of leaving the home unoccupied. (Side note: China itself has a massive problem with unproductive ghost cities, so other countries need to be smarter than the CCP in combating this with smart policy). Finally, I should note that after decades of giving permanent residency and citizenship to people with strong Chinese Communist Party viewpoints and associations, Australia has developed *massive* issues around Chinese Communist Party-linked political corruption, infiltration and bribery (eg, Huang Xiangmo and his family), but that's a separate issue.
We can now add a THIRD trove of information released on laundered money 1) Panama papers 2) Paradise papers 3) Pandora papers (the newest and arguably even larger than the Paradise papers and includes many 'Politically Exposed People')
While I think this is a real problem that needs to be addressed somehow, I think there is just too much money involved to shut it down. When you have lots of money, you can always move money around. Just hire enough lawyers to do your bidding. I used to process loans. I can tell you the added paperwork was a pain in the ass. Most if not all the extra paperwork really was for the politicians to say they have done something to address this problem.
If real estate starts to depreciate it will hurt everyone: middle class who expect their houses to appreciate for profiting on resizing, politician and of course investors. So ALM reform and transparency in this space will be very slow if any. There are too many interests lobbying against making the system more open.
sure, but eventually it will be so inflated that virtually no individual people new to the market will be in a position to buy anything anywhere people actually live & work, it will all be consolidated under corporates & plutocrats with maybe a handful of upper-middle class their unrealised gains as a tradeable asset for buying debt while trusting appreciation to keep up. Once a significant majority of the voting public are renting without owning anything, the political will to keep the bubble afloat will start to dissipate - and any private lobbying to keep it afloat longer will be to realise their asset market value before the whole thing starts to topple. The housing appreciation in most Australian cities & surrounds has been more than triple the inflation rate for over 30 years now, that cannot go on forever.
Not compared to the following locations: 1) Orange county, 2) Los Angeles county, 3) New York City, 4) San Francisco Bay Area, 5) Seattle area, and 6) Boston area. Within the San Francisco Bay Area, there were more dirty Chinese that flooded into the city of Cupertino than San Francisco city since 2009.
You don't think USD printing, property developers and politicians working together to limit supply, and intergenerational wealth disparity are the root causes? If someone buys a house using USD, GBP, or AUD, it makes sense to ask who printed that money as well as where it came from. I could never understand why a country not lacking land is acting like people have nowhere to live.
When a property is sold by public auction and the winning bidder is oriental in appearance, the Australian public thinks that the property is bought by a Chinese (from PRC), but the person might be Australian born, or from SE Asia (Malaysia, Singapore, Indonesia, Thailand, etc), Taiwan, Korea or Japan.
Welcome to Australia where money laundering is full on . It may be alright for these smucks to go and buy a property for a large enough to out price the market for the average home buyer. There are many ways they can trap them . Taxes would be one of them. Residency should be another . Yes it goes part and parcel that people will chase the highest dollar without knowing where it is coming from. The vendor you will find is fair dinkum but ends up selling to a crook and not know it.
I usually tend to agree with you on most things but I'm fine with this. China capital controls are unreasonably tight anyways including on ordinary households, as it helps funnel that investment into the local economy as opposes to what that household thinks is best.. Money laundry as an issue is overstated globally anyways, just something governments like to do to control capital and take more control as well as track citizens closely. I'm not am anarchist but I believe government should have less tracking of money and not more. Bigger issue in the US IMO is civil assets forfeiture, where government takes money with no proof or evidence of wrongdoing.
Only knowledgeable people knows the truth that's why I didn't invest in real estate cuz Xi Jinping is quite serious in catching corrupt officials thus the market is falling down 😂
i am a fan and i appreciate your work. this is the weakest show you have done. foreign investors are not the cause of high real estate prices. the Central bank scams of forcing interest rates towards zero and the huge loans by commercial banks are why real estate is too high. money laundering is a red herring!
This is why I think here in Denmark the law against non-residents buyng residential property is sensible. If you don't live here, why do you need to buy property here?
@ Gregory Glen, it's called investment. Some country would like other nationals to bring in money through any investment. I think Sweden has a great welfare safety net, so you guys don't care about it.
Well when $$$ in pouring in some tents to close a blind eye right. This not applies only to corrupt ppl of China in fact is all over the world.
@bob yob How does that stop an anonymous buyer purchasing real estate through a shell company or third party partner?
Sounds like Denmark is smart. Keep up the good work.
Where I come for the whole country is for sale. It’s the culture of greed and perversion. USA
Makes a whole lot of sense, why should non-resident buy residential property 🤔.
This is a Gem of a channel, as a londoner, this hurts to watch
Chinese money is also being laundered through Casinos in Canada and elsewhere.
Not only Chinese, but every rich people also do that in every nations especially the elite families in the Western nations.
I have been watching your channel for a while now, and I must say that your quality and content is top notch! Thanks for your work!
You keep on repeating same statement
this is a huge problem in australia, i have one chinese living next door, he paid over market price, half the time they leave the property empty ?
I’ve watched your videos lately and came across this older one. Can’t help but notice the huge evolution and growth you’ve accomplished. Both as writer and TH-camr. Congrats
Based in the order of most money Chinese dirty money invested into real estate, 1) Orange county, 2) Los Angeles county, 3) New York City, 4) San Francisco Bay Area, 5) Seattle area, and 6) Boston area. Within the San Francisco Bay Area, there were more dirty Chinese that flooded into the city of Cupertino than San Francisco city since 2009.
Another mark of something fishy is largely unoccupied high-priced real estate. In the north of Miami Beach, there are ordinary condos on the intercoastal side of A1A, and there are new high-priced high-rise condos on the ocean side. At night, most of the lights are on for the ordinary side, and mostly off for the ocean side.
For me, this is one of the best channels on youtube the info is so precise… excellent work.
China being as rich as it is, obviously has a lot of money flowing outwards this way. However, many other poor countries in Asia and Africa also have significant wealth being transmitted in a similar way (especially compared to how poor they are). It is very obvious that rich cities and rich states have no incentive to investigate stuff unless local individuals are impacted and protest. It is safe to say that cities like London thrive on dirty money from many places (Russian Oligarchs, Indian fugitives, African warlords) to keep their real estate super expensive and maintain their aura. You cannot expect global cooperation to significantly move ahead because ultimately not everyone will benefit from the outcome and business as usual is what many players in this system want while maintaining their illusion of being great democracy, equitable cultures in a first world country.
China is not that rich. I mean yes, it's in pace to become the biggest economy, but it's also the most populous country. On a per capita basis China is still at the level of South American countries so even to them this capital flight is a serious problem (we have the same problem in SA by the way). In more way then one, under the current system, wealth just get funneled into the first world.
The truth is bitter.. all these western democracies act as if they are corruption free while in reality they are a haven for corrupt money
@@lcg3092 There are a lot of Chinese 'businessmen' with huge amounts of cash they urgently need to transfer out of China and transform it into 'clean' equity. Of course the Chinese population taken as a whole isn't rich, but we're talking about that minority who are. Like Russian oligarchs, successful Chinese businessmen are quickly disappearing one way or another.
@@franc9111 Agreed, and the best part about China is that different than in the US,Russia,EU, they often dissapear into the justice system. While I'm a not a big fan of capital punishment, that's the case I have the least amount of problem with.
It would be really interesting if you could do a second video looking at how Macau and Hong Kong are a linked, fixed, US dollar system intentionally designed to allow for US dollar offshoring of funds. Obviously, this could all be done away with a critical eye being brought to the HKD USD peg.
Another really interesting video would be the “Insurance” industry in HK and its role in offshoring money.
Love your videos man, I’ve only found your channel in the past week, one hell of a body of work. You have a long term viewer no question.
this is a great channel, I have been learning so much about an issue that will shape the 21 century
An excellent video! Keep up the good work
You should combine this video with information about FATCA and CRS. Also, updating the information where most of the dirty money are located, for example, mostly in Orange county.
Of course we should do everything we can to stop money laundering -- especially around drug trafficking and human trafficking -- but whatever fraction of China's mass capital flight that's legitimate should definitely considered foreign direct investment and carefully handled, because anybody with a large amount of money within China understandably wants to get their money out of China as soon as possible.
Australia's relatively recent regulations are pretty smart: We have no restrictions on foreigners purchasing *new* buildings. If you buy a vacant plot of land you must build a dwelling within 4 years (you can't just buy it and hold it). You can only buy and demolish an existing dwelling if you build more buildings than were previously there. Finally, real-estate investment no longer contributes to gaining citizenship. All these things are good because they encourage *increasing* the housing supply which means housing is more affordable.
I know that some places (I believe Vancouver and maybe London) tax empty houses and apartments which should encourage them to be placed on the rental market instead of the cultural preference of leaving the home unoccupied. (Side note: China itself has a massive problem with unproductive ghost cities, so other countries need to be smarter than the CCP in combating this with smart policy).
Finally, I should note that after decades of giving permanent residency and citizenship to people with strong Chinese Communist Party viewpoints and associations, Australia has developed *massive* issues around Chinese Communist Party-linked political corruption, infiltration and bribery (eg, Huang Xiangmo and his family), but that's a separate issue.
Watching a very old video of you after watching most the latest videos.
We can now add a THIRD trove of information released on laundered money
1) Panama papers
2) Paradise papers
3) Pandora papers (the newest and arguably even larger than the Paradise papers and includes many 'Politically Exposed People')
Trust me it's not just Sydney going bonkers in Australia
In australia right now we having a probe into the casinos for laundering on top of it all 🤔
While I think this is a real problem that needs to be addressed somehow, I think there is just too much money involved to shut it down. When you have lots of money, you can always move money around. Just hire enough lawyers to do your bidding.
I used to process loans. I can tell you the added paperwork was a pain in the ass. Most if not all the extra paperwork really was for the politicians to say they have done something to address this problem.
Great insight. Many thanks.
Would appreciate your perspicacity on Hugh Grosvenor - squeezed out of the womb owning property in 62 countries. That’s foreign ownership.
i would be interested in a video regarding China's government debt!
Yukon Huang has a great analysis of this subject. Just search his name.
If real estate starts to depreciate it will hurt everyone: middle class who expect their houses to appreciate for profiting on resizing, politician and of course investors. So ALM reform and transparency in this space will be very slow if any. There are too many interests lobbying against making the system more open.
sure, but eventually it will be so inflated that virtually no individual people new to the market will be in a position to buy anything anywhere people actually live & work, it will all be consolidated under corporates & plutocrats with maybe a handful of upper-middle class their unrealised gains as a tradeable asset for buying debt while trusting appreciation to keep up.
Once a significant majority of the voting public are renting without owning anything, the political will to keep the bubble afloat will start to dissipate - and any private lobbying to keep it afloat longer will be to realise their asset market value before the whole thing starts to topple.
The housing appreciation in most Australian cities & surrounds has been more than triple the inflation rate for over 30 years now, that cannot go on forever.
Thks, enlightening, entertaining; & request an update
could you maybe do a video on how (or why not) the US (or other countries) and China cooperate on criminal affaires?
you left out singapore
Certainly agree with you, SG has recently uncovered about 1.8 billions laundered by the foreigners, especially the Chinese.
Thanks!
There are clearly some crooks living well near me.
The part of the housing crisis that is under-discussed: human housing becoming just another globalized, bougie investment commodity.
Justin Trudeau is a master of this.
is it me or anyone else notice static noise in the audio?
yup
so informative!🙌🏽
So informative.
Denver is the capital of laundering, is the top
Not compared to the following locations: 1) Orange county, 2) Los Angeles county, 3) New York City, 4) San Francisco Bay Area, 5) Seattle area, and 6) Boston area. Within the San Francisco Bay Area, there were more dirty Chinese that flooded into the city of Cupertino than San Francisco city since 2009.
well done. thank you.
You don't think USD printing, property developers and politicians working together to limit supply, and intergenerational wealth disparity are the root causes? If someone buys a house using USD, GBP, or AUD, it makes sense to ask who printed that money as well as where it came from. I could never understand why a country not lacking land is acting like people have nowhere to live.
When a property is sold by public auction and the winning bidder is oriental in appearance, the Australian public thinks that the property is bought by a Chinese (from PRC), but the person might be Australian born, or from SE Asia (Malaysia, Singapore, Indonesia, Thailand, etc), Taiwan, Korea or Japan.
Not necessarily. This seems to be false stereotype of a semi-false stereotype.
Only idiots think that. It's not racist to despise criminals driving up real estate markets.
Great stuff
Accurate and it's about time
Every country do it including people who run country around the world
I think they should first invest their money in developing countries, then transfer money to Europe, USA etc.
Welcome to Australia where money laundering is full on . It may be alright for these smucks to go and buy a property for a large enough to out price the market for the average home buyer.
There are many ways they can trap them . Taxes would be one of them. Residency should be another .
Yes it goes part and parcel that people will chase the highest dollar without knowing where it is coming from. The vendor you will find is fair dinkum but ends up selling to a crook and not know it.
SkyBox Reality, San Francisco. "Life is better at the top"
The pros are so much better than the cons for the receiving countries.
Thank goodness you changed the newsletter it was awful before i agree
1,488 views?
Why I cant comment on your kuka aquisition of midea??
Almighty God bless you all 🙏
“why real estate is so important to the housing price”….should maybe try scripting the videos to avoid such blunders
7:30
I usually tend to agree with you on most things but I'm fine with this. China capital controls are unreasonably tight anyways including on ordinary households, as it helps funnel that investment into the local economy as opposes to what that household thinks is best..
Money laundry as an issue is overstated globally anyways, just something governments like to do to control capital and take more control as well as track citizens closely. I'm not am anarchist but I believe government should have less tracking of money and not more.
Bigger issue in the US IMO is civil assets forfeiture, where government takes money with no proof or evidence of wrongdoing.
This topic is alarming, but there's not much information about it.
Look at Toronto. Literal crack shacks are selling for 1 million+
No good. 👎 We will have to overthrow them also. 😮💨
Only knowledgeable people knows the truth that's why I didn't invest in real estate cuz Xi Jinping is quite serious in catching corrupt officials thus the market is falling down 😂
i am a fan and i appreciate your work. this is the weakest show you have done. foreign investors are not the cause of high real estate prices. the Central bank scams of forcing interest rates towards zero and the huge loans by commercial banks are why real estate is too high. money laundering is a red herring!
I like big house. No to regulation.
Thanks!