forma condo review.Overseas real estate investment should be on guard against policy risks. The booming domestic real estate market has trained a large number of strong real estate enterprises, which focus on overseas markets in order to gain greater benefits.Please Visit: forma condo review to Get Your VVIP Registration Today!
For a moment, owning overseas real estate has become a very foreign word, and the public opinion about the low cost of overseas real estate has given Chinese consumers a great temptation. Then the news that a large number of Chinese people invest in overseas real estate not only caused a flood in China. According to statistics, from 2008 to the first half of this year, China’s foreign real estate investment increased more than 200 times, and the total investment reached about 33.7 billion US dollars, an increase of more than 200 times.
In addition, the addition of Chinese investors has also pushed up local house prices.
The overvaluation of house prices in Canada has attracted the attention of the Bank of Canada. The financial system assessment report released by the Bank of Canada in the second half of 2014 pointed out that high household debt and overvalued house prices are the two major risks facing the Canadian economy. According to the report, Canadian house prices have been overvalued by at least 10% since 2007, while they are currently overvalued by 10% to 30%. The Bank of Canada explained that low interest rates and rising incomes have pushed household debt-to-income ratios to record highs. The high household debt caused by high house prices has caused the central bank to worry. About 12 per cent of Canadian households are heavily indebted, with a debt-to-income ratio of 250 per cent, according to the central bank report. The Bank of Canada also warned in its interest rate resolution on the 3rd of this month that high household debt also poses risks to financial stability.
For the risks thrown out, the protection policy will naturally follow. Once foreign governments introduce policies to curb the excessively high rise in house prices, it may cause losses to Chinese investors.
The Malaysian state of Selangor introduced new home purchase regulations in September to raise the minimum threshold for foreigners and foreign companies to buy property in the state. It is reported that the new regulations, which came into effect on September 1, stipulate that the threshold for foreigners in each area of Selangor will be raised to 1 million-3 million ringgit (about 1.9 million-5.7 million yuan). In some areas, the threshold for foreigners to buy houses has nearly doubled than before, and the strength and effect of this move can be said to be obvious.
There are many more such policies, including Yuan Xilong, the new governor of Jeju Road, who expressed concern about Chinese investors'”enclosed investment” in June this year, saying that it may raise the threshold for Chinese companies, customer investment and immigration to Jeju Island. At the same time, Jeju Dao has proposed to the South Korean central government to implement a “total permanent residence right system” in Jeju, which will limit the total number of immigrants to 1% of the total population of Jeju Island, or about 6000.
As can be seen in more and more cases, because it involves the interests between countries, many countries are becoming more and more sensitive to the rise in house prices. Once house prices rise too fast, they are likely to take radical measures to curb house prices.