PLEDGE NOW
Foreign Buyers In American Real Estate

Mega-wealthy foreign buyers getting deep into American real estate – shutting out American buyers, scooping up the top of the market and, laundering money.

A development rendering of the One57 building in Manhattan. A penthouse in the building is said to be in contract for $90 million. (AP / Extell Development Company)

A development rendering of the One57 building in Manhattan. A penthouse in the building is said to be in contract for $90 million. (AP / Extell Development Company)

The American real estate market is not the same since the Great Recession.  Private equity firms buying up tons of houses.  Mortgage rates low, but mortgages still hard to snag.  And then there are the foreign home buyers.  More than ever.  From all over the world.  Looking at the US and seeing a great place to own.  To, in effect, stash money.  And sometimes to launder it.  When you hear “all-cash purchase,” that cash may well be from abroad.  They’re buying $90 million condos in New York, and maybe something on your block.  This hour On Point:  foreign buyers, American real estate.

– Tom Ashbrook

Guests

Andrew Rice, contributing editor at New York Magazine. Author of “The Teeth May Smile But the Heart Does Not Forget.” (@riceid)

Jed Kolko, chief economist at the real estate website Trulia. (@JedKolko)

Shima Baradaran, law professor at the University of Utah.

From Tom’s Reading List

New York: Stash Pad – “According to data compiled by the firm PropertyShark, since 2008, roughly 30 percent of condo sales in large-scale Manhattan developments have been to purchasers who either listed an overseas address or bought through an entity like a limited-liability corporation, a tactic rarely employed by local homebuyers but favored by foreign investors.”

The Nation: How New York Real Estate Became a Dumping Ground for the World’s Dirty Money — “Financial crime experts have a name for the process of creating mazes of bank accounts and offshore companies to move and hide money: layering. When the layers are laid down skillfully, it’s often impossible for authorities to detect flows of illicit cash. The United Nations Office on Drugs and Crime estimates that as little as one-fifth of 1 percent of money that’s laundered around the world is identified and intercepted.”

Forbes: Chinese To Spend Billions On American Real Estate — “The United States is the country of choice for China buyers.  Canada and Australia come in next at No. 2 and No. 3 respectively. That rich Chinese individuals and savvy corporations are buying up real estate in world class cities is no surprise at this point.”

Please follow our community rules when engaging in comment discussion on this site.
ONPOINT
TODAY
Jul 3, 2015
Demonstrators shout slogans during a rally organized by supporters of the YES vote for the upcoming referendum in front of the Greek Parliament in Athens, Tuesday, June 30, 2015 Greece's European creditors were assessing a last-minute proposal Athens made for a new two-year rescue deal, submitted just hours before the country's international bailout program expires and it loses access to billions of euros in funds. (AP)

Overtime pay. Diplomatic ties with Cuba. Greece defaults. Iran deadline missed. Chris Christie jumps in. Our weekly news roundtable goes behind the headlines.

Jul 3, 2015
Harmonica master Howard Levy, in a photo dated February 2012. (Courtesy the Artist)

Harmonica virtuoso Howard Levy tears it up with us. From Bach to the blues.

RECENT
SHOWS
Jul 3, 2015
Harmonica master Howard Levy, in a photo dated February 2012. (Courtesy the Artist)

Harmonica virtuoso Howard Levy tears it up with us. From Bach to the blues.

 
Jul 3, 2015
Demonstrators shout slogans during a rally organized by supporters of the YES vote for the upcoming referendum in front of the Greek Parliament in Athens, Tuesday, June 30, 2015 Greece's European creditors were assessing a last-minute proposal Athens made for a new two-year rescue deal, submitted just hours before the country's international bailout program expires and it loses access to billions of euros in funds. (AP)

Overtime pay. Diplomatic ties with Cuba. Greece defaults. Iran deadline missed. Chris Christie jumps in. Our weekly news roundtable goes behind the headlines.

On Point Blog
On Point Blog
Our Week In The Web: July 3, 2015
Friday, Jul 3, 2015

We made a lot of last-minute programming changes these past few weeks, and you stuck around with us through it all. Thanks!

More »
Comment
 
Election 2016: Who Exactly Is Running For President?
Tuesday, Jun 30, 2015

Who is running for President, anyway? We attempt to help you figure it out.

More »
9 Comments
 
Our Week In The Web: June 19, 2015
Friday, Jun 19, 2015

Why our broadcast changed in different markets this week, and a closer look at a puppet theatre vandalism in rural Norway. (Really).

More »
Comment