90.9 WBUR - Boston's NPR news station
Top Stories:
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
Sep 30, 2014
St. Louis county police officers advance on protestors trying to shut down Interstate 70 in Berkeley, Mo. on Wednesday, Sept. 10, 2014 near the St. Louis suburb of Ferguson, Mo. where Michael Brown, an unarmed, black 18-year old was shot and killed by a white police officer on Aug. 9. (AP)

Police shootings, cop culture, body cameras. And the big debate over how to protect the public and the police.

Sep 30, 2014
In this Jan. 15, 2013, photo, Rosser Pryor, Co-owner and President of Factory Automation Systems, examines a new high-performance industrial robot at the company's Atlanta facility.  (AP)

Nicholas Carr says automation, all over, is turning us into zombies. Out of touch with the world. He’s with us.

RECENT
SHOWS
Sep 29, 2014
A 1597 map of Lesbos / Mytilene, Greece by Giacomo Franco. (Flickr / Creative Commons)

How Aristotle invented science. The great ancient Greek, and life on Earth.

 
Sep 29, 2014
In this March 8, 2012 file photo, Peter Thiel speaks in San Francisco. (AP)

Silicon Valley’s Peter Thiel; the entrepreneur, investor and the PayPal co-founder’s call for deep invention.

On Point Blog
On Point Blog
Transcript: Sexual Violence Under ISIS Control
Tuesday, Sep 30, 2014

A transcript from our September 25, 2014 conversation on the Islamic State and sexual violence.

More »
Comment
 
Our Week In The Web: September 26, 2014
Friday, Sep 26, 2014

All of you love to listen to old broadcasts when we play them, and Taylor Swift loves the Internet.

More »
Comment
 
NPR’s Chris Arnold On Garnished Wages
Wednesday, Sep 24, 2014

NPR’s Chris Arnold took part in a remarkable new reporting series tackling the rise of garnished wages as a way to pay off debt. He talked to us today about the series.

More »
3 Comments