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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (139283)	2/14/2018 8:21:46 PM
From: Elroy Jetson	Respond to of 217571

It's a repeat of the many Japanese real estate purchases in America which later became sales. The sales price was sometimes higher, but given the major investments in each property the Japanese usually took 50% losses. Some of those properties sold by the Japanese at a major loss, like the Bonaventure Hotel in downtown Los Angeles sold by Kenji Shuwa, were purchased by trusts in Taiwan. A pretty smart couple from Taiwan bought the Bonaventure but they proved too cheap in the long run for their own good. While some Taiwan-originated investments in California real estate made money - others like the World Chinese Trust high rise just west of downtown were a catastrophe, that one remaining completely empty without tenants for more than 20 years - which is the equivalent of losing 80% of your original investment. In their minds they were preserving the property for the future when tenants would be willing to pay more - closer to what WCT had falsely hoped tenants would pay when they build the tower. I've always found it curious that people who want to lose money feel the best way to do this is to purchase real estate on the other side of the planet. I admit I almost did this once, inexplicably wanting to buy a beachfront home in Perth Australia - at a good prices but it was 22 hours of flight time from Los Angeles. I think it's often a temporary mental illness, like most real estate development. I used to work with a German investment firm Lehndorf who had better investment returns in America than most foreign firms, but they were always very particular about their purchase price. In a completely different market, investors from Israel are drawn to urban slum properties and spend their time suing each other over each of the projects. Mafia types, a lot of them.