Foreign Buyer Poll – 72% of these buyers have 35% or less equity in their properties.

Hat-tip to ‘Van MD’ at vancouvercondo.info 4 May 2011 10:35am for directing us to a ‘group anecdote’ in the form of a running poll regarding the Percentage Down-Payment Mainland Chinese buyers use when purchasing RE in Canada. From at iask.ca (“one of the biggest Mainland Chinese forum/news websites”):

Results (as of posting, with n = 160):
100% Cash – 6.88%
80-90% DP – 1.88%
60-75% DP – 1.88%
50% DP – 11.88%
40% DP – 5.00%
35% DP – 20.63%
25-30% DP – 25.62%
15-20% DP – 16.88%
10% DP – 3.75%
5% DP – 5.63%

[Note: 72.5% of these buyers have equity in their properties of 35% or less.
Substantial leverage; no different from all the other ‘types’ of buyer; their equity in these properties will get wiped out when the bubble bursts. As we’ve said before; speculative momentum players. – vreaa
]

6 responses to “Foreign Buyer Poll – 72% of these buyers have 35% or less equity in their properties.

  1. Yeah well, wake me up when the wipe out starts, I need a rest after waiting this long.

  2. these numbers are fabricated. Who is providing them? The owner or the realtor? Neither, the owner has no motivation to provide, and the realtor does not keep these stats for any buyer, local or otherwise. More crap.

    • rusty, rusty, rusty -> As stated, the numbers are from a reader poll on a website, 160 responses. No more, no less. Take it as you will.
      If you want more verifiable data, check out the TotalHousingValue:GDP post.
      What do you think of that?

  3. actually vreaa – I welcome any firm information on how much % or purchase detached buyers are bringing on purchase. No-one collects this data.
    For you to post it as a legitimate source of information simply devalues the content of this site.
    I’ll ignore your other question just as you ignore mine
    https://vreaa.wordpress.com/2011/04/30/open-reply-to-rusty-just-because-you-perceive-a-bubble-does-not-make-it-so-bubbles-are-only-identified-after-they%e2%80%99ve-burst/#comment-8982

  4. rusty ->
    Firstly, the above info was clearly posted as a ‘poll’ result and described as a ‘group anecdote’… there are caveats that go with both descriptors, and it’s disingenuous to claim that we’ve presented it as data set in stone. We, too, would like to see watertight data about DPs and leverage.
    Secondly, thanks for the heads-up regarding your 3 May reply to my question on the ‘Open Reply To Rusty’ thread. I simply had missed your response, and I’ll now respond to it on that thread.

  5. VREAA, Rusty is Ozzie Zurrok…. Rusty (errr Ozzie, hang on it might also be Rennie) is still hanging on to that last hope of all the planes loaded to the exits with “rich” chinese….

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