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Comment by rolothrow | Hacker News Reader

Totally anecdotal, but I live in the largest city in Spain, and even in my residential area (as opposed to the touristy spots) every week I can see ads for "we buy your house, paid upfront over market value, Chinese investors".

Posters in walls, flyers in windshields and so on.

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> every week I can see ads for "we buy your house, paid upfront over market value, Chinese investors"

It specifically calls out that they're Chinese? Are you sure this isn't a political stunt?

Yes, it literally says Chinese investor.I guess it's to make the idea of buying immediately a flat with cash sound less shady.

I have no idea of the reasoning why specifically Chinese people invest in Spanish real state paying with cash, it's just what I see.

>Are you sure this isn't a political stunt?

It's our president's whole thing to take measures that sorta move the needle in a good direction but are focused on being good moves politically. My guess is he needs to act against rent prices, he can't go after the big guys (blackrock, etc) for fear of retribution and he can't go after the regular joe that buys a second house as investment. Foreign investors don't vote, so they're the next best option.

This is excellent, assets like property don't grow on trees and needs to be protected from foreign investors.

Absolutely need something like this in the UK.

The UK first needs the will to do something. The UK is renowned for shell company purchases and laundering. What is wanted by the little home buyers is very different from what is wanted at the top of the pyramid. As the current uproar about the decades long grooming atrocity has shown the rot runs deep.

Do you think it is bad when foreign investment corporations buy commercial property? This is very common in London. Or only residential property? And, were you upset when foreign capital (Malaysian, mostly) helped to redevelop Battersea Power Station?

I think the ship has sailed, but regardless isn't it all meaningless? Surely they can setup a company to get around it, or will be ban all foreign ownership of shares too?

Assets cant be shipped overseas. They are here, in the UK. That's the beauty of it. Taxes can force them back to UK ownership.

The rich are buying the only asset the middle class will ever probably own, housing.

Land is a public good, insofar as "buying" the land still comes with obligations to the state (paying taxes, conforming to building codes and zoning regulation, etc). Just because you "own" it doesn't actually mean you can do as you please.

Given all of that, it is not unreasonable to limit or outright prohibit foreign ownership of land, or ownership of land by companies which are not majority-locally controlled.

It's interesting, I just think the second order effects might be a bit scary.

Having said that I guess for FDI there's always the option of getting a local company to "JV" with like in China.

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