A Second Home for Affluent Chinese

If you broke ass Americans can't do it, someone else will!

http://streeteasy.com/nyc/talk/discussion/27828-as-investors-chinese-turn-to-new-york

this article ranges from funny to shocking.

"In general, Chinese buyers prefer condos to co-ops. “It’s a fair challenge getting them to understand the co-op system,”

so it's that they are limited to condos being, they are just too stupid to understand the co op system?

"Culturally, Asians are loan-averse, thinking that coming to the table with less than the asking price will reflect negatively on them"

hhmmm. uh, what?

other things in new yorks favor for the chinese are our fresh air and family friendly corporate culture.

@lucillebluth: you probably know nothing about asian cultures...

Asians don't like the concept of debt--they want to own something outright, especially something like property. And as for the co-op vs condo argument, it probably is along the same lines, since a co-op is buying shares in a corp, unlike a condo. To say that they are too stupid to understand is simply ignorant on your part.

"In general, Chinese buyers prefer condos to co-ops. @@@@@“It’s a fair challenge getting them to understand the co-op system@@@@,”

"Culturally, Asians are loan-averse, @@@@@@thinking that coming to the table with less than the asking price will reflect negatively on them@@@@@@"

while expertise is asian culture is certainly valuable skill, reading comprehension is arguably more so.

Chinese nationals arrive in the Big Apple awash in fresh US debt looking to shed themselves of this soon to be worthless currency. Buying properties with soon to be worthless greenbacks.
They only have 2 questions....
1.how did we get so stupid?
2.why did we dump all that sugar in "chinese food".

steviepompoms is all over the site cheering for the chinese--odd that he thinks they want anything to do with anything that might affect value on his studios--but hey, it gives him something to cheer about in this overwhelmingly negative environment for NY real estate

@lucillebluth: I believe you are reading too literally into the sentence...perhaps you need to work more on your own reading comprehension skills...

"In general, Chinese buyers prefer condos to co-ops. @@@@@“It’s a fair challenge getting them to understand the co-op system@@@@,”

When you buy a condominium, you are purchasing real property, but when you buy a co-op you are not actually purchasing the physical apartment; you're buying shares in the cooperative corporation that owns the building. This is where knowing something about the values/culture of Asians come into play. They don't like the idea of NOT owning something they are spending so much money on, especially real estate.

"Culturally, Asians are loan-averse, @@@@@@thinking that coming to the table with less than the asking price will reflect negatively on them@@@@@@"

Further to the above and my other post above, the Asian culture is very debt-averse. The idea of debt is very negative in the Asian culture and thus, they have a negative view of debt.

I trust that someone as smart as you doesn't always read things so literally all the time. It might prove dangerous at times, even to the point of reflecting negatively on you.

http://www.hookedonphonics.com/
1-800-532-3607

ok, let's try this again. i will type very slowly.

"Culturally, Asians are loan-averse"

"thinking that coming to the table with less than the asking price will reflect negatively on them"

read it, let it sink in, and explain in your own words what the first part has to do with the second part.

“It’s a fair challenge getting them to understand the co-op system”

again, read this, let it sink in, and realize that the alleged "challenge" here is not getting them to ACCEPT the terms of co op purhase, but to UNDERSTAND the terms of co op purchase. do you understand the words i am typing?

"thinking that coming to the table with less than the asking price will reflect negatively on them"

this seems like the dumbest thing i've ever heard about asians. whenever i've seen house purchased by asians in deep brooklyn, they torture the seller into giving to them for the lowest price. typically go back and forth for a week with 24 hrs to respond.

like always NYTimes hires morons to write for their real estate section. most of the articles are so off, that if you think the opposite, it will be more right. the "stories" that they find in the hunt always end up with someone paying 10-30% more then all of the people surrounding.

whoops posted this in the other chinese thread, should have been here;

This is all quite funny considering every real estate property in China is on a government land lease.
Not to mention the intricate system they have for exporting goods, requiring factories to have a sort of Co-op with an export licensed company.

Sorry, slip of the keyboard. Let me try again.

@jubu: "Further to the above and my other post above, the Asian culture is very debt-averse. The idea of debt is very negative in the Asian culture and thus, they have a negative view of debt."

I keep reading about the credit bubble in China and how everything is levered to the eyeballs. I also seem to recall that Japan has by far the highest debt to GDP ratio of any country in the world.

So I was wondering, is your point that Asians are culturally debt-averse but in reality can't stop themselves from borrowing? Is that like a smoker who's trying to quit but can't kick the habit? Or could it be that your generalization is just a teeny bit too broad and just a teeny bit unsupported by evidence?

"SEOUL—South Korea said it will implement measures to curb growth in household borrowing, in an effort to ensure such loans remain at manageable levels and prevent potential defaults from destabilizing the economy.

South Korea has some of the highest levels of household debt in the developed world, reflecting widespread home ownership and borrowing to finance expenditures such as education. While authorities say such debt remains manageable, there is concern about a recent pickup in the pace of growth.

... Household debt rose by 8.4% from a year earlier to 801.4 trillion won ($741.73 billion) as of the end of March, the sharpest rise in two years. Such debt has grown by an average of 13% per year from 1999 to 2010, outpacing average annual economic growth of 7.3% in the same period.

South Korea's household debt accounted for 86% of the country's gross domestic product in 2009, compared with an average of 77% among the nations in the Organization for Economic Cooperation and Development. The proportion of households' debt to their disposable income was 153% that year in South Korea, also higher than the OECD average of 134%.

"Our current household debt levels are relatively high compared with the [OECD] average in terms of the ratio of such debt in comparison to the GDP or to households' disposable income," Financial Services Commission Standing Commissioner Lee Suk-joon told reporters during a briefing. "Our medium- to long-term hope is to at least guide these levels down toward the OECD average."

WSJ, June 29, 2011

When discussing the "Asian" culture, are we talking about a uniform culture that covers 3 billion people?

hell no.

just like discussing the huntersburg identity. hundreds of names all from the same person.

The huntersburg identity?