Should Non-Citizens Be Able To Buy Property?

[Sir Winston Churchill]

I recently read some things about how Chinese nationals are buying up Californian real estate, and I'm not talking immigrants buying a home, but businessmen charging rent. This doesn't seem sensible to me.

Essentially we're selling property to someone who will be taking revenue from us and putting it in their home country's financial circle, which in the long run is a loss for us. Perhaps I'm mistaken, and if so I'm open to education on the topic, but doesn't it seem wrong to anyone else?

I just don't feel comfortable with the idea someone living in China owns land in the United States, and does not call the United States home. It would work vice versa too, personally if I was going to buy property in China I'd just live there.

[yupper]

Essentially we're selling property to someone who will be taking revenue from us and putting it in their home country's financial circle

1) Would you have a problem if the buyer was Canadian?
2) Would you have a problem with a US based or multi-national company that owns land or production facilities in, say, Guatemala or Nigeria?
3) Do you think it should be illegal for foreign workers to send money to their relatives and families in the home country?

[Sir Winston Churchill]

1) Would you have a problem if the buyer was Canadian?
2) Would you have a problem with a US based or multi-national company that owns land or production facilities in, say, Guatemala or Nigeria?
3) Do you think it should be illegal for foreign workers to send money to their relatives and families in the home country?

1.) Yep.
2.) I still do have a problem with it, outsourcing is a major problem in my opinion.
3.) YES! Just bring them all here if that's what they're going to do.

[alexanderswift]

3.) YES! Just bring them all here if that's what they're going to do.

Hang on, what?

But that's off topic, on topic. It makes me somewhat uncomfortable too but since, as said above, Americans can buy land in China there's nothing really wrong with it. If that wasn't the case it would be different but eh, it's the way of the free market.

[SLN445]

We have that in Australia aswell but with Farming, Chinese Buisnessmen buying up huge tracks of Farming land.
It will be interesting what they do with it and what laws are enacted here with the large amount of people against it.

[Simon Cashmere]

We have that in Australia aswell but with Farming, Chinese Buisnessmen buying up huge tracks of Farming land.
It will be interesting what they do with it and what laws are enacted here with the large amount of people against it.

No, they buy up prime residential property too.

[Enemy of the State]

Dam them chinks for taking all our land! And our jeeebs!

[Anna_Gein]

I think he only got a problem with foreign speculation. He didn't talked about factory .

Well welcome to free trade.

[Megas Ycarus]

Of course they should. Rejecting it would mean segregation, xenophobia, and all sort of that things.

Long live the free trade !

[Col. Tartleton]

I would require basic parity. If it is legally possible to buy land in China than the Chinese can buy land here.

Free trade has to go both ways or it's predatory.

[Anna_Gein]

I would require basic parity. If it is legally possible to buy land in China than the Chinese can buy land here.

Free trade has to go both ways or it's predatory.

You should talk to our Europeans leaders.

[chilon]

I would require basic parity. If it is legally possible to buy land in China than the Chinese can buy land here.

Free trade has to go both ways or it's predatory.

This is pretty much how I feel. If it is okay for Californians to buy in China then Chinese can buy here. If not, then no.

[Sphere]

[PointOfViewGun]

I recently read some things about how Chinese nationals are buying up Californian real estate, and I'm not talking immigrants buying a home, but businessmen charging rent. This doesn't seem sensible to me.

Essentially we're selling property to someone who will be taking revenue from us and putting it in their home country's financial circle, which in the long run is a loss for us. Perhaps I'm mistaken, and if so I'm open to education on the topic, but doesn't it seem wrong to anyone else?

I just don't feel comfortable with the idea someone living in China owns land in the United States, and does not call the United States home. It would work vice versa too, personally if I was going to buy property in China I'd just live there.

There are few sides to the issue. It's also raised in Turkey recently as the government raised the limitations for foreigners to buy property substantially.

First of all, such transactions can initially provide a lot of cash to the state. You're basically adding extra money that didn't exist before inside the state's economy.

Second, if a foreign buyer uses the property for renting it to people then he has to pay taxes. You can get more information on this link: Foreign Persons Receiving Rental Income From U.S. Real Property

The method by which rental income will be taxed depends on whether or not the foreign person who owns the property is considered "engaged in a U.S. trade or business." Ownership of real property is not considered a U.S. trade or business if it consists of merely passive activity such as a net lease in which the lessee pays rent, as well as all taxes, operating expenses, repairs, and interest in principal on existing mortgages and insurance in connection with the property. Such passive rental income is subject to a flat 30 percent withholding tax (unless reduced by an applicable income tax treaty) applied to the gross income rather than the "net rent" received. Thus, the real estate taxes, operating expenses, ground rent, repairs, interest and principal on any existing mortgages, and insurance premiums paid by the lessee on behalf of the foreign owner-lessor, must be included in gross income subject to the 30 percent withholding tax. The gross income and withheld taxes must be reported on Form 1042-S, Foreign Persons U.S. Source Income Subject to Withholding (PDF) to the IRS and the payee by March 15 of the following calendar year. The payor must also submit Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons (PDF), by March 15.

If, on the other hand, the foreign investor is engaged in a U.S. trade or business such as the developing, managing and operating a major shopping center, the rental income will not be subject to withholding and will be taxed at ordinary progressive rates. Expenses such as mortgage interest, real property taxes, maintenance, repairs and depreciation (accelerated cost recovery) may then be deducted in determining net taxable income. The nonresident must make estimated tax payments for the tax due on the net rental income, if any. The only way these expenses can be deducted, however, is if an income tax return Form 1040NR for nonresident alien individuals and Form 1120-F for foreign corporations is timely filed by the foreign investor.

Third, if I remember correctly a foreigner or a citizen can not simply wire that money out of the states. Now, I can't really comment on that much but I can point you to Internal Revenue Code and the part I believe to be relevant: TAXES TO ENFORCE REPORTING ON CERTAIN FOREIGN ACCOUNTS

Now, there are bunch of legal ways around anything we can find. It usually depends on how well of an international lawyer you can find.

[boofhead]

No, they should not be able to. Rent maybe, with government approval.

[Nutsack]

I don't see a problem with it as long as they payed for it, and someone was willing to sell it to them. That, the government should not interfere in. Two people conducting business like that. I guess the business is about land and that supposedly changes something, but in my opinion it doesn't. No matter who "owns" the land, the land is still under jurisdiction and therefore technically owned by the state of California and the federal government.

Sure, a lot of the money gotten by rent is going to go to China. They will buy our iPods with that money. It's okay, nothing to worry about. I'm almost always for free trade. I believe the only times I am not in support of free trade is free fluctuation of job markets. I don't want anyone in my country to have to compete on a global standard the wages they will get for doing work with low education in a western country.

[boofhead]

I don't see a problem with it as long as they payed for it, and someone was willing to sell it to them. That, the government should not interfere in. Two people conducting business like that. I guess the business is about land and that supposedly changes something, but in my opinion it doesn't. No matter who "owns" the land, the land is still under jurisdiction and therefore technically owned by the state of California and the federal government.

In Australia the Chinese and Saudia Arabia have been buying swathes of productive food bowl lands. Our incompetent government got wind of it and launched some inquiry or other....an inquiry....just ing ban them from buying land, eh? Our food bowl is our sustenance for our people, not for anybody else, unless we get paid money to export, and do so voluntarily.

The only saving grace in this is that technically nobody here ever ''owns'' land. I believe land ownership is in reality a 99 year lease that can be extended in perpetuity, or rescinded after that time period.

[Ak1980]

In Australia the Chinese and Saudia Arabia have been buying swathes of productive food bowl lands. Our incompetent government got wind of it and launched some inquiry or other....an inquiry....just ing ban them from buying land, eh? Our food bowl is our sustenance for our people, not for anybody else, unless we get paid money to export, and do so voluntarily.

The only saving grace in this is that technically nobody here ever ''owns'' land. I believe land ownership is in reality a 99 year lease that can be extended in perpetuity, or rescinded after that time period.

IF they buy/lease the farmland, use Australian worker to farm in that land, export the product to their country, is it so bad? Remember Australian already exporting wheat every year. In case of serious drought, it's easy for Australia to create new regulation to stop export and forced them to sell to Australia domestic market at loss if needed.

[Ak1980]

We also can buy property in China, go ahead and do it. But caution needed, the best time to investing in China property already pass, if you buy at 2004, you are making millions by now.

Except commercial property, most country have more than enough empty land to build residential unit. It add so much value to a country that can build house in empty land, sell it to foreigner, get property taxes, get sales tax and any other income when the owner come to visit or live for temporary in that property, the best of all in case of war the country can simply nationalize the foreigner property.

[Condottiere 40K]

It's situational; countries that have no security concerns can let the free market reign, though everyone has certain areas in a country that can't be leased, rented or sold to foreigners. What they should guarantee is that if a property is rented or leased, the foreigners have the same rights as the locals.