Real estate sales to foreign buyers is a form of export. Maybe the best export:
* the good (the house) does not leave the country
* the money continues to flow after the actual sale: real estate taxes and maintenance
* taxes go to the local government, but the non-resident buyer does not really consume government services, so that benefits the rest of the local population
* maintenance go to the local economy
* when the rich foreigner visits, they spend like a tourist, not like a local, i.e. they contribute to the local economy disproportionately compared to their actual presence
Why do rich Chinese buy in Manhattan? Why not in Lagos, such as this wonderful house [1] that goes for $1MM ? Because of the rule of law. Real estate sales to foreign investors is actually export of the rule of law. The rule of law is simply a more valuable asset in Manhattan than in Lagos, or in Beijing for that matter.
Impeding real estate sales to foreigners simply means obstructing the monetization of maybe the most valuable asset that the Western world has. (or maybe the second most valuable)
"Impeding real estate sales to foreigners simply means obstructing the monetization of maybe the most valuable asset that the Western world has. (or maybe the second most valuable)"
> taxes go to the local government, but the non-resident buyer does not really consume government services, so that benefits the rest of the local population
The non-resident might not spend any money on goods or services in the municipality resulting in less tax revenue for the city/state. Especially bad if they don't even rent it out to anyone.
* the good (the house) does not leave the country
* the money continues to flow after the actual sale: real estate taxes and maintenance
* taxes go to the local government, but the non-resident buyer does not really consume government services, so that benefits the rest of the local population
* maintenance go to the local economy
* when the rich foreigner visits, they spend like a tourist, not like a local, i.e. they contribute to the local economy disproportionately compared to their actual presence
Why do rich Chinese buy in Manhattan? Why not in Lagos, such as this wonderful house [1] that goes for $1MM ? Because of the rule of law. Real estate sales to foreign investors is actually export of the rule of law. The rule of law is simply a more valuable asset in Manhattan than in Lagos, or in Beijing for that matter.
Impeding real estate sales to foreigners simply means obstructing the monetization of maybe the most valuable asset that the Western world has. (or maybe the second most valuable)
[1] https://www.nigeriapropertycentre.com/for-sale/houses/block-...