An Interest In:
Web News this Week
- March 24, 2024
- March 23, 2024
- March 22, 2024
- March 21, 2024
- March 20, 2024
- March 19, 2024
- March 18, 2024
China's panicked upper middle class are easy picking for offshore real estate scams
The combination of Chinese anti-corruption reforms and currency controls has China's storied "middle class" (a nebulously defined category whose size and wealth are the subject of multiple, conflicting accounts) scrambling for ways to get their money out of the country and to establish bolt holes to escape to, should the situation suddenly worsen.
One preferred investment in this group is real estate in western countries like Australia, Canada, New Zealand and the USA. Partly as a function of the large pool of investors from China (combined with other offshore property speculators), property in the great western cities has reached unprecedented prices, unprecedented growth and unprecedented liquidity: if you bought a condo in Vancouver or Sydney, you would pay a fortune, the price would go up, and you could sell it on a couple days' notice. Property became an "asset class" like bonds or stocks, easy to liquidate, with the added bonus that an offshore property was somewhere you or your kids could live if you ever had to escape China in a hurry.
As China's own property bubble has cooled off, more and more investors have flocked to offshore property speculation, making them easy pickings for scammers who vanish overnight with millions in cash, leaving Chinese investors and offshore builders high and dry. One such is Ausin China, which had "17 luxury offices" across China and disappeared with $49.6 million in cash from 200 Chinese investors, cratering 15 Australian construction projects.
Chinese investors face perils beyond garden-variety scams: the Chinese government is increasingly ruthless in punishing people who evade currency controls, and cities around the world are limiting foreign ownership and requiring disclosure of the true beneficial owners of newly purchased properties, making it easy for the Chinese authorities to punish people who buy offshore. Read the rest
Original Link: http://feeds.boingboing.net/~r/boingboing/iBag/~3/Rc-vI8Y6Ljg/thats-what-xi-said.html