The Chinese Real Estate Dilemma
Harry Dent | November 01, 2019 | Today's rant covers an unusual topic: China. No, not Chinese trade. We talk about that plenty. Rather, today I want to talk about a new angle on Chinese real estate. The Chinese are strange real estate investors, largely because its communist government had not broadly allowed real estate ownership until recently in history. It's really only been the past 30 years or so, and during that time we've seen this massive urbanization project that has created the biggest bubble in history, and paradoxically amidst very high vacancy rates.. And all the energy thrown into real estate has only been self-perpetuating, with the nouveau-riche class now hell-bent on acquiring more real estate since they've seen its value and appeal increase. They're about to find that they've been very, very wrong. Eighty-nine percent of Chinese real estate is owned, not rented. There's not much of a rental market, only 2% of all housing in dollar value. What's that mean? It means we're about to see a significant uptick in renting. It's simple economics really: Real estate's getting ever more expensive, making it harder to buy a home. Also, lots of people in China already own two or three homes, meaning there's an abundance of housing stock with 22% of it empty. Many households have to inhabit jointly to afford and that is not what most would want. So renting will have to get more popular, while those who bought so advantageously thus far will find that they're the ones at the disadvantage. Renting will be the big trend going forward at much more affordable prices freeing people to live without all of their relatives with them!  
Harry Dent | Man Who Predicted Trump’s 2016 Election Victory Makes Shocking New Prediction For 2020... He predicted 2008’s Great Recession... The devastating crash of oil prices in 2015... And Trump 2016 campaign victory... Now he’s making another shocking prediction... one that could bring America to its knees by early 2020... Click here to see it now >> | Trending Stories... It's been two days since my movers met my contractors. I don't mean a "Hey-nice-to-meet-you" kind of greeting; it was more of a "get-out-of-my-way-I'm-working-here." My planned extrication from my old digs into my partially-renovated new home didn't go like I thought it would. The exercise brought to mind the paraphrased wisdom of Von Moltke: "No... Somehow the stock market is expecting growth to re-accelerate after a disappointing 2.0% GDP growth in Q2. The only sign of such growth in the stock market is central banks lowering rates and expanding their balance sheets again. Q3 just came in at 1.9%, just below the 2.0% last quarter. And that covers over the... I never understood WeWork. The company either purchased or took long-term leases on commercial properties. It dressed them up with Millennial-friendly details like beer taps and cool art, and then re-leased the space in very small increments for a higher price. Leave out the cosmetics, and you've got a traditional commercial leasing company that tries... It's no secret to you that I am still more bearish on gold than bullish. And it's no secret to me that a lot of our subscribers still like gold and feel that it is still a safe haven and a good store of value long term. Despite having argued that gold was one of... Yesterday morning, I hopped on the line with Dent Senior Research Analyst Dave Okenquist to catch up on all the goings on around the world at present moment. First on our agenda was China, who's shown itself to be quite fragile lately, with big decisions being made in the wrong ways for the wrong reasons.... | 
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