Monday, September 17, 2007

Housing Costs to Foreigners

The idea of globalization is that capital can flow freely and various entities can invest in various ventures in various countries resulting in the most efficient allocation of capital around the world, resulting in amazing increases in productivity and efficiency, resulting in dramatic increases in standards of living for everybody. That's about it in a nutshell.

But some countries put up barriers because they're afraid "foreign interests" will buy out their country. The US is just as guilty of this with our denying China from buying Unocal or our fear in the 80's that Japan was going to buy us out. But some countries feel their sovereignty is particularly threated when foreigners buy their land and therefore put very high taxes in place to prevent that from happening.



Something to think about the next time you want to buy some South Korean property.

3 comments:

Anonymous said...

Trade barrier is hell for true investor or capitalist. If I have a house for sale in New York, I do not want my property allowed to sell to New Yorker only and not Chicagorian. I want whole world buyers available to bid my house to get my house true value in the world.

If I own unicol, I also want whole world available to bid. Protectionism is enemy to true capitalism.

Anonymous said...

Again Angolo-culture is true free trader and globolizer. French is classic protectionism.

Paul Chappell said...

Notice Mexico for instance is not on that list... IIRC it is illegal for a "foreigner" to own property in Mexico... Something to note when the government down there complains about our unfair practices... 'course, just my opinion as always...