Rough Outline
O. Economic Reliability in China?
I. The Real Estate Bubble in China
A. Living conditions for the 20-somethings and early 30-somethings
1. Average rent of apartment: $400
2. Average monthly income per individual: $300
3. Average square footage for an apartment: 300 sp. feet
4. Low quality buildings, crammed spaces, most must have a roommate --> space becomes even smaller
B. Demand for better housing
1. 20-30 somethings (college grads-adults still trying to settle) want better housing conditions
2. Government listens, starts building
3. Many people who are either wealthier or have government connections* see this as investment opportunity --> huge investment in real estate market
4. End of construction --> bigger, better apartments
5. Apartments still not the best quality but better than before because the government cut some corners during construction to save money
6. Apartments still too expensive for many people --> cycle of investment, construction, and demand
C. China's real estate market is unstable
1. Investment leads to dead-end
2. Newly constructed apartment complexes are empty, ghost cities as a result of lack of people able to afford the new housing
3. Once seen as an investment opportunity, not so much anymore
D. Why did the surge of Chinese buyers in the U.S. market start near the early 2010s?
(Establishing Context: A Stable Market in the U.S.)
A. Real estate is considered a solid investment in the U.S.
1. People can own a property to either keep for themselves (i.e. for children in the future) or use it to attract tenants and earn money with rent
2. No real estate bubble (at least, not the same situation in China)
3. It's been reliable through a lot of tough times (i.e. financial crisis, despite foreclosure crisis)*
II. Values in China
A. Location
1. Education available (i.e. education offered by district for child, or private school commute)
-Good education implies safer district, higher income
2. Closeness to work (i.e. university professor would probably rather live near the university)
B. Education
1. Chinese education vs. American education: which is better for the future?
-Chinese education is exam based, people only care about score
-American education is more well rounded, extracurriculars
2. Importance of reputation of a district's education system
3. Thinking about children's education so that they are prepared for college, the future: is this a priority?
III. Why come to the U.S.
A. Education system
1. public education/private education, higher education
B. Work opportunities
C. More freedom
1. Freedom isn't a priority so long as the individual is happy (CCP in power because it maintains happiness)
D. Better investment opportunities in our market because our market is more stable
1. No "bubble"
2. Real estate is versatile and reliable (own/rent)
I. The Real Estate Bubble in China
A. Living conditions for the 20-somethings and early 30-somethings
1. Average rent of apartment: $400
2. Average monthly income per individual: $300
3. Average square footage for an apartment: 300 sp. feet
4. Low quality buildings, crammed spaces, most must have a roommate --> space becomes even smaller
B. Demand for better housing
1. 20-30 somethings (college grads-adults still trying to settle) want better housing conditions
2. Government listens, starts building
3. Many people who are either wealthier or have government connections* see this as investment opportunity --> huge investment in real estate market
4. End of construction --> bigger, better apartments
5. Apartments still not the best quality but better than before because the government cut some corners during construction to save money
6. Apartments still too expensive for many people --> cycle of investment, construction, and demand
C. China's real estate market is unstable
1. Investment leads to dead-end
2. Newly constructed apartment complexes are empty, ghost cities as a result of lack of people able to afford the new housing
3. Once seen as an investment opportunity, not so much anymore
D. Why did the surge of Chinese buyers in the U.S. market start near the early 2010s?
(Establishing Context: A Stable Market in the U.S.)
A. Real estate is considered a solid investment in the U.S.
1. People can own a property to either keep for themselves (i.e. for children in the future) or use it to attract tenants and earn money with rent
2. No real estate bubble (at least, not the same situation in China)
3. It's been reliable through a lot of tough times (i.e. financial crisis, despite foreclosure crisis)*
II. Values in China
A. Location
1. Education available (i.e. education offered by district for child, or private school commute)
-Good education implies safer district, higher income
2. Closeness to work (i.e. university professor would probably rather live near the university)
B. Education
1. Chinese education vs. American education: which is better for the future?
-Chinese education is exam based, people only care about score
-American education is more well rounded, extracurriculars
2. Importance of reputation of a district's education system
3. Thinking about children's education so that they are prepared for college, the future: is this a priority?
III. Why come to the U.S.
A. Education system
1. public education/private education, higher education
B. Work opportunities
C. More freedom
1. Freedom isn't a priority so long as the individual is happy (CCP in power because it maintains happiness)
D. Better investment opportunities in our market because our market is more stable
1. No "bubble"
2. Real estate is versatile and reliable (own/rent)