As we talk again about the goals of moving high percentages of immigrant labor and foreign businesses into US cities to force that transition to FOREIGN ECONOMIC ZONE---we are shouting to protect those global labor force from what is a very hard life while stopping the global 1% and their 2% from taking hold of our real estate and US city economies. While we may think of UnderArmour as a US corporation--it is multi-national and it brings global factory owners to settle on its global corporate campuses. It is this capture of our real estate by global investment firms we need to fight and not these global labor workers just trying to support their families.
The UK has been these several decades running about 10 years ahead of the US in transitioning to ONE WORLD FOREIGN ECONOMIC ZONE. London has been these few decades the model of a ONE WORLD city losing all connections to what we think of as ENGLAND OR LONDON. Just as with San Fran or Miami the working and middle-class are pushed out---the poor being tied to global labor pool enslavement.
'Nearly half of all properties in Central London are owned by foreigners. Most of the owners do not live in their properties but rather use them as second homes or investment properties. Foreign ownership has driven up property prices immensely, and has made life in central districts almost impossible for many poorer Londoners who feel the fallout most severely'.
KHAN will be much like de BLASIO in NYC----posing socially progressive while MOVING FOWARD with ONE WORLD LONDON.
Have foreigners made London unaffordable? Officials want to launch an investigation.
By Rick Noack October 1
Newly elected London Mayor Sadiq Khan is greeted by well-wishers outside City Hall in London on his first day as mayor on May 9. (Jonathan Brady/PA via AP)LONDON — London's property crisis is best seen at night, when entire streets in Central London are in the dark. Welcome to one of the world's most expensive places.
Except that hardly anyone will be there to welcome you.
Nearly half of all properties in Central London are owned by foreigners. Most of the owners do not live in their properties but rather use them as second homes or investment properties. Foreign ownership has driven up property prices immensely, and has made life in central districts almost impossible for many poorer Londoners who feel the fallout most severely.
Fixing the city's housing crisis was one of London Mayor Sadiq Khan's election promises during his campaign this summer. Now, in an interview with the Guardian, he has announced the launch of an unprecedented inquiry into foreign home ownership and "dirty money" that is allegedly being used to buy property in the British capital. The project will be watched closely in other world capitals facing similar issues, and has the potential to become a model for how to address the issue.
"It’s clear we need to better understand the different roles that overseas money plays in London’s housing market, the scale of what’s going on and what action we can take to support development and help Londoners find a home," Khan said.
More so than in other countries, the capital city is of particular importance to many Brits. The best jobs are here and the accumulation of world-class universities is stunning.
But younger professionals and university graduates see themselves increasingly faced with uncomfortable choices: either move away to a smaller city with fewer opportunities or launch a career in London with the financial support of parents.
For children with lower-income parents, there is often only one choice.
Social mobility NGO Sutton Trust recently concluded that the capital's housing crisis was causing widening rifts within British society.
In a report, it described how "bright, young people — especially those from disadvantaged backgrounds — are being priced out of the city’s housing market, despite London being the top place in the country for law, medicine, media, and finance jobs."
Some think that Khan's inquiry into foreign home ownership is a farce, though. "He is covering up the failures of the authorities by blaming the impact on foreign homeowners," said Naomi Heaton, chief executive of real estate advising company London Central Portfolio.
From 2001 to 2015, London's population increased by 12 percent, but the number of homes built has lagged behind. Many of London's 8 million inhabitants have even had difficulty finding property far away from the city center, where foreign owners have bought up much of the available properties.
"British buyers and international customers are interested in totally different types of properties," Heaton said. "It is not the interest among overseas buyers in acquiring some of the most expensive homes in London that is at the core of the problem, but rather the government's failure to build affordable homes."
To Let signs stand next to a properties in west London, Tuesday, Aug. 2, 2016. (AP Photo/Alastair Grant)Heaton criticized the fact that local authorities had granted permission to real estate owners to build luxury homes in cheaper suburbs instead of favoring construction of large-scale affordable housing projects there. She believes that Khan's inquiry will find that foreign home ownership has in fact benefited London.
Unsurprisingly, Sadiq Khan's determination to tackle rising housing prices has been applauded in most of London.
But his critics worry that he might have picked the wrong fight.
The MASTER PLAN for taking Western nations ONE WORLD moves forward by loading foreign citizens into US cities as corporate executives and as government leaders since these global 1% and their 2% are not tied to our American history, US Constitution, or US Rule of Law. We have the NEW AMERICAN branch of Clinton's Wall Street neo-liberal party just for this. Moving America's 5% to the 1% out---and moving global 1% and 2% into our US cities sets the stage for the 99% of Americans to have no voice or rights. We love immigrants but we do not want more 1% rich taking control of our government and corporations at a time we are fighting to reverse ONE WORLD ONE GOVERNMENT.
We read above that London has these few decades been made a majority foreign owned and a majority of people inside London NEW IMMIGRANT CITIZENS. This has allowed UK leaders at national, state, and local levels to install the worst of far-right global corporate neo-liberal/neo-con policies. From Tony Blair as Clinton----to Osbourne as Bush-----we have watched UK march much faster to ONE WORLD than the US because it is a very small nation.
When we read or hear media telling us that US cities are seeing their MARKET VALUE SOARING----for buying houses and RENTS-----they are not telling the truth. As with all that is global Wall Street these market values are manipulated inflated values----not what has been normal market growth in the US for centuries. If a global investment firm is allowed to buy a high rise in Baltimore's downtown for example it immediately calls these apartments LUXURY. This is all over downtown Baltimore these several years. Know what? Global investment firms have trillions of dollars and could care less if those high rise building apartments OVERPRICED for our real Baltimore market value rents and sales---and these global investment firms allowed to buy these US city high rises are PROBABLY government subsidized for allowing those apartments to remain empty but EXPENSIVE.
THIS IS WHAT IS HAPPENING IN BALTIMORE DURING MAYOR RAWLINGS-BLAKE AND IT WILL BE WHAT THIS COMING MAYOR ----IF AN ESTABLISHMENT CANDIDATE LIKE PUGH----WILL DO AS WELL.
'Foreign ownership has driven up property prices immensely, and has made life in central districts almost impossible for many poorer Londoners who feel the fallout most severely'.
These several years of Obama had the subpriming of mortgage market bring back the FED's next fraud scheme----mortgage bond buybacks and zero interest loans. This was the entire real estate market and it was filled with the global rich buying big high rises and tracks of real estate in the US----as the US 1% did the same overseas ---they are basically laundering all illegal gains from last decade's fraud by buying real estate overseas.
Foreign buyers flood US real estate, but buy cheaper homes
Diana Olick | @DianaOlick
Wednesday, 6 Jul 2016 | 10:00 AM ETCNBC.com
The appetite for U.S. real estate continues to flourish, but international buyers are shifting their sights from luxury to less-pricey properties. This may be due to overall higher home prices, along with a stronger U.S. dollar, which both cost foreign buyers more at the negotiating table. There are also fewer nonresident foreigners investing in the market.
"Weaker economic growth throughout the world, devalued foreign currencies and financial market turbulence combined to present significant challenges for foreign buyers over the past year," said Lawrence Yun, chief economist of the National Association of Realtors (NAR). "While these obstacles led to a cool down in sales from nonresident foreign buyers, the purchases by recent immigrant foreigners rose, resulting in the overall sales dollar volume still being the second highest since 2009."
Zhang Peng | LightRocket | Getty Images
Chinese investors negotiate at the US-China Real Estate summit & trade fair in Beijing. (File photo).
Foreign buyers purchased $102.6 billion of residential property in the U.S. between April 2015 and March 2016, according to NAR's annual report on international activity in U.S. real estate. That is a 1.3 percent decline in dollar volume from the previous survey. The number of properties purchased, however, rose 2.8 percent to 214,885. The value of homes bought by foreigners was typically higher than the median price of all U.S. homes.
"The slight drop in dollar volume can probably be accounted for based on the types of properties purchased, and the locations of many of those properties. We've seen at least some evidence that foreign buyers — both investors and people just looking for a home — have begun looking beyond expensive markets like San Francisco, New York City and Washington D.C., and buying properties in smaller, less-expensive cities in the Southeast and Midwest," said Rick Sharga, executive vice president at Ten-X (formerly Auction.com), an online real estate marketplace .
Another major shift was in the makeup of international buyers. Chinese purchasers continued to outpace all others, with their dollar volume exceeding the total of the next four ranked countries combined. Their dollar volume of sales, at $27.3 billion, was a slight decrease from last year's survey but was still three times as much as Canadian buyers, who were ranked second. Chinese buyers also bought the most expensive homes at a median price of $542,084.
"Although China's currency modestly weakened versus the U.S. dollar in the past year, it's much stronger than it was five to 10 years ago, thereby making U.S. properties still appear reasonably affordable over a longer time span," wrote Yun in the report.
Given today's volatility in global financial markets, real estate is one of the safest investments available. U.S. real estate in particular is relatively inexpensive compared to properties in Asia.
"The explosive growth of the Chinese economy created a very large number of very wealthy people. As that country's economy has slowed down, those individuals are looking for better investment alternatives, and many have concluded that U.S. real estate is a smart bet," added Sharga.
London had been a favorite of foreign investors, but the impact of the Brexit vote is already hitting the housing market there. Buyers from the United Kingdom were the fourth-largest consumer of U.S. real estate in the data that was gathered before the Brexit vote.
"Sales activity from U.K. buyers could very well subside over the next year depending on how severe the economic fallout is from Britain's decision to leave the European Union," added Yun. "However, with economic instability and political turmoil outside of the U.S. likely to persist, the world view of American real estate as a safe investment should keep demand firm even as pressures from a stronger dollar continue to weigh down on affordability."
As for U.S. destinations, five states accounted for half of foreign buyer purchases: Florida, (22 percent), California (15 percent), Texas (10 percent), Arizona and New York (each at 4 percent). Latin Americans, Europeans and Canadians, who historically favor warmer climates, were most prevalent in Florida and Arizona. Asian buyers flocked to California and New York. Texas was more a mix of buyers from Latin American, the Caribbean and Asia. Texas may be more of an investment play, as demand for single-family rentals there remains strong.
Sales to nonresident foreign buyers fell to the lowest dollar volume since 2013. Shares to foreign residents increased. The shares had been evenly split, but higher home prices and the depreciating value of foreign currencies likely played into that dynamic.
"Led by Venezuela (45 percent) and Brazil (24 percent), at least eight countries, including China and Canada, saw double-digit percent increases in the median sales price of a U.S. existing home when measured in their country's currency," added Yun.
All of this is critical in bringing a firmly developed nation into third world societal structure -----1% Wall Street would not have been able to do here in the US what they did overseas in third world Asia or Latin America as we have strong histories of US Constitutional and governing structures with citizens having rights and being LEGISLATORS. We of course are being denied those rights by rigged elections and Wall Street players as pols---but those rights are still there waiting to be brought back. This next decade will be about MOVING FORWARD with foreign economic zones having large tracts of real estate bought and owned by the global 1% and their 2%. This is why I always shout that Baltimore's city center will be filled with the global rich while Baltimore citizens will be pushed out to surrounding suburbs and eventually be forced to live on global corporate campuses as they are built.
For right now----these policies having our MAYOR OF BALTIMORE marketing our city to the global rich has this goal mirroring London no doubt Baltimore's 5% to the 1% are being given real estate in these areas slated to be wealthy thinking they are REALLY GOING TO BE ABLE TO KEEP THAT REAL ESTATE......come on 5% to the 1%----you cannot be that uninformed!
When global investment firms buy US city downtown high rise apartments and call them luxury this sets what is called MARKET VALUE for the surrounding communities. So, if these global rich set that rent at $2500 for a one bedroom----that makes the surrounding area's communities have rent rises----and we do not even need anyone actually renting these downtown apartments to ARTIFICIALLY MANIPULATE THESE MARKET VALUE RENTS!
See why ONE WORLD global mayors want a Catherine Pugh to be installed-----she as with the other establishment pols will move forward these transfers of Baltimore real estate to global rich in the march towards a LONDON-style loss of national sovereignty and governance.
This is what a national and local 'labor and justice' organization which keeps supporting CLINTON/BUSH/OBAMA is working towards and it has nothing to do with protecting US labor or the middle/working class, and poor.
Chinese pour $110bn into US real estate, says study
Investment is set to double in the next five years as wealthy rush to get their money into overseas assets, especially houses
The Waldorf Astoria hotel in New York was bought by the Chinese group Anbang. But Chinese purchases of residential property outpaces commercial deals. Photograph: Mark Lennihan/APAgence France-Presse
Sunday 15 May 2016 22.36 EDT Last modified on Sunday 15 May 2016 22.47 EDT
Chinese nationals have become the largest foreign buyers of US property after pouring billions into the market in search of safe offshore assets, according to a study.
A huge surge in Chinese buying of both residential and commercial real estate last year took their five-year investment total to more than $110bn, according to the study from the Asia Society and Rosen Consulting Group.
The sheer size of that total has helped the real estate market recover from the crash that began in 2006 and precipitated the 2008 economic crisis, they said.
Chinese investment in property has also helped to inflate prices in other developed countries, notably the UK and Australia in the wake of the dip in world stock markets in 2015.
And despite a slowdown due to Beijing’s subsequent clampdown on capital outflows, the figure for the second half of this decade is likely to double to $218bn, the study said.
Poetry or property punts: what's driving China's love affair with Cambridge?
Read more“What makes China different and noteworthy is the combination of the high volume of investment (and) the breadth of its participation across all real estate categories,” including a “somewhat unique entry into residential purchases,” the study said.
The authors of the study said their numbers, based on public and real estate industry data, understate the total. They necessarily miss purchases made by front companies and trusts that do not identify the sources of the funds.
Big deals such as the Anbang insurance group’s $2bn purchase of the Waldorf Astoria hotel in New York last year and its failed $14bn offer for the Starwood group in March have made headlines. But the study said Chinese buying of US homes far outpaces its investment in commercial land and buildings.
Between 2010 and 2015, Chinese buyers put more than $17bn into US commercial real estate, with half of that spent last year alone. Unlike many countries, there are very few restrictions on what foreigners can buy in the US.
But during the same period at least $93bn went into US homes. And in the 12 months to March 2015, the latest period for which relatively comprehensive data could be gathered, home purchases totaled $28.5bn.
That took the Chinese past Canadians, who have long been the biggest foreign buyers of US residential real estate.
Geographically, Chinese buyers are concentrated in the most expensive markets: New York, Los Angeles, San Francisco and Seattle. Property in Chicago, Miami and Las Vegas is also popular.
That focus means they pay well above the average US home price: last year, Chinese buyers paid on average about $832,000 per home in the United States, compared with the average for all foreign purchases of $499,600.
The motivations are broad: some are buying second homes, some are buying as they move to the United States on EB-5 investor visas; some are investing for rental and resale.
Most of the money in US homes, the study noted, is private wealth, not corporate.
“This familiarity of utilizing real estate as an investment or wealth preservation tool is more prevalent in China and reflects the broader comfort of purchasing second homes in the United States by Chinese individuals and families,” the study noted.
Super-rich may quit London homes under new anti-corruption rules
Read moreSince last year, there has also been the motivation to get money outside China and into dollar assets amid worry about the continued fall in the yuan, which was devalued slightly against the US dollar in August.
The study says it expects a lot more commercial real estate buys in the United States by Chinese companies.
Last month, Chinese conglomerate HNA announced it would buy the 1,400-hotel group Carlson Hotels, owner of the Radisson brand.
“Anbang is not the only firm looking at these assets. Other Chinese entities were originally interested in acquiring Starwood in 2015 before Marriott reached an initial deal, including Jin Jiang Hotel Group, which had already acquired a European hotel chain in 2015, and CIC, the sovereign wealth fund,” the study said.
In Australia, the government recently blocked an attempt by Dakang Holdings to buy the Kidman farmland empire whose assets cover 1.3% of the Australian land mass.
If we remember, the 2008 economic crash brought not only US homeowners into record-breaking home foreclosures but there was a downtown real estate boom filled with high rise housing with many of those projects going into foreclosure. Of course much of the funding going to Wall Street Baltimore Development went to those developments---from Federal to state---from tax credits to green credits---all that renovation of downtown high rises subsidized were often those falling into bankruptcy after 2008. Guess who was ready to buy them at rock-bottom costs? That's right---those foreign buyers. Now, some of these foreign buyers may very well be foreign citizens but many are simply the global 1% pretending to be foreign corporations or the rich. The objectives are first----launder those trillions of dollars in Wall Street fraudulent gains out of the country and invest in real estate in other countries protecting the global rich from losses in this coming massive bond market collapse/fraud and economic crash.
What was these several years of buying downtown high rises has these few years moved to buying city center individual houses in what are underserved communities in Baltimore and US cities deemed Foreign Economic Zones. These foreign investors buying these individual homes are often the landlords creating yet another ARTIFICIAL RENT-RAISING BUBBLE this time in our city center communities. Indeed, this is happening in Baltimore in communities directly adjacent to downtown. Between Hopkins Medical campus to Hopkins Academic campus--all these communities are seeing rents soar as these rent prices are called market value again often these apartments are not occupied-----they are simply buying large real estate lots and setting rent prices high----$1200 for a one bedroom----then claiming this is market value for those communities. This of course is moving working and middle-class out with more affluent moving in but the goal in less than two decades will be having this housing for the 1% and their 2%---
Foreign Buyers Widening Range of US Real Estate Investments
August 24, 2016, 08:19:24 AM EDT By Brad Walker
By Brad Walker, CEO of Income&
People of notable wealth from other countries have been interested in buying prime US real estate for some time. The trend actually stretches all the way back to the mid-19th century when wealthy Europeans first began buying homes in the US in some numbers. In recent history, the oil boom in OPEC countries led to significant commercial and residential real estate investments in the US in the mid to late 1970s. By the 1980s, the economic boom in Japan was generating billions of dollars of surplus cash, and a good chunk of those funds ended up invested in US real estate and infrastructure deals.
It wasn’t until the mid-1990s, however, that we started to see sustained large scale investment in US real estate by a range of foreign buyers. According to the National Association of Realtors, foreign investment in US real estate moved up from $2.763 trillion in 1992 to a remarkable $8.144 trillion in 2001. That is a tad under a 200% increase within a decade.
The trend toward greater foreign buying of US real estate has continued to pick up steam in the 21st century, especially in the last few years.
At 16%, foreign purchases as a percentage of total investment in U.S. real estate in 2015 was almost double the 8.1% average in the 10 years through 2012 (data from Real Capital Analytics Inc.).
Over the last few years, residents of Canada, China, and Mexico have bought the most US real estate assets, with China increasingly leading the way.
Foreigners Broadening Real Estate Investment Portfolios
Although New York City and San Francisco remain the most popular locations for foreign real estate buyers (with LA, Washington DC and Chicago in the next tier), the last few quarters have seen foreign investors purchasing more properties in secondary markets. Charlotte, N.C. has enjoyed a huge boom of investors from abroad, boasting a 29.8% boost in transaction volume in the first quarter of this year.
Rick Sharga, executive vice president at Ten-X, an online real estate marketplace, noted in an interview with CNBC that foreign buyers are starting to geographically broaden their US real estate investing portfolios. “We've seen at least some evidence that foreign buyers — both investors and people just looking for a home — have begun looking beyond expensive markets like San Francisco, New York City and Washington D.C., and buying properties in smaller, less-expensive cities in the Southeast and Midwest.”
So far this year, investors from Singapore have focused most of their buying in Los Angeles and Phoenix, while Swiss investors have bought the most property of all nationalities in Portland, Oregon. Also of interest, real estate purchases by foreigners in Philadelphia were dominated by buyers from the UK.
Recent statistics also suggest that foreign real estate buyers ex-China are purchasing less expensive homes on average. Reflecting this trend, the dollar value per transaction from Q2 2015 to Q2 2016 was down 1.3%, but the total number of US properties purchased by foreign buyers was up by almost 3%.
China Buying a Piece of the US
Chinese investors have been major buyers of US real estate for some time, but the pace of purchases has quickened dramatically over the last year or so. The surge of purchases of both residential and commercial real estate in 2015 brought the five-year total for buyers from China to over $110 billion, based on data from the Asia Society and Rosen Consulting Group.
Moreover, even though there has been a slowdown in buying of US real estate due to a government crackdown on capital outflows, the Asia Society/Rosen Consulting study suggests purchases of American real estate by Chinese buyers in the second half of this decade will double to $218 billion.
Path Act Further Opens Floodgates to Foreign Buyers of US Real Estate
In a rare piece of bipartisan legislation passed during President Obama’s term, the PATH Act rolled back a law passed back in 1980 that was designed to put curbs on foreign ownership of US real estate assets.
The Protecting Americans from Tax Hikes (PATH) Act was signed by President Obama in December of last year.
While the PATH Act has been publicly touted as a permanent extension of a number of tax provisions benefiting U.S. taxpayers, it also rewrites a law that forced most foreigner real estate investors to pay an extra tax.
The Foreign Investment in Real Property Act of 1980 mandated additional tax on any gains when a non US citizen sells U.S. real estate, but that tax was in effect rolled back by exceptions provided in the PATH Act.
Real estate industry experts note these changes give buyers from abroad additional incentive to buy US real estate, especially Real Estate Investment Trusts (REITs), and is a likely a contributing factor in the ongoing US “land rush” by foreign buyers.
On a cautionary note, several of these same experts also point out that this flood of buying by foreigners the last few years has been a major support for the US real estate sector.
WE ARE ONLY CHARGING MARKET-VALUE say all these new homeowners as across the nation US cities deemed International Economic Zones are seeing rents soar 70-75% all with the goal of moving American middle/working class out----of course if downtown and city center apartment rents are soaring---so to will be those surrounding communities where more house rentals lie----this is how San Fran and Miami were made into cities filled with the global rich and global corporations all set for that ONE WORLD ONE GOVERNMENT GLOBAL MAYOR OF A CITY STATE.
Landlords in Baltimore's downtown and city center are being pressed to raise to meet these ARTIFICIALLY INFLATED rents. As this happens everything else becomes more expensive such as taxes, utilities, home repairs---so all this will hit landlords as much as renters.
As luxury apartments flood market, single-family rents soar
Rent increases on single-family homes are also far outpacing those on traditional apartment buildings
John Tlumacki / Globe staff
Scott Van Voorhis
August 18, 2016 5:00 am
The hottest new player in the rental market is more likely to be found in the suburbs than downtown, and it rarely tops two stories.
Rents on single-family homes in the Boston area are rising by double-digits, far outpacing increases in apartment buildings and towers, new stats show.
The average monthly rent on a single-family home rose 12.4 percent this spring compared to last year, hitting $2,382, according to a new report by the Boston franchise of the Real Property Management system and RentRange.
“Our single-family stock regularly rents faster and has better occupancy rates than multifamily inventory,” notes Caleb Page, president of Real Property Management’s Boston-area franchise. “This is due both to the desirability of a stand-alone dwelling and that there are fewer single-family units available (compared to multi) in the Boston area.
The double-digit increase in rents on three-bedroom homes in the Boston area was nearly double the rate nationally, with similar homes for rent across the country seeing a 6.4 percent increase in the second quarter, to an average of $1,361, the report found.
Rent increases on single-family homes are also far outpacing those on traditional apartment buildings and towers, with one-bedrooms in Boston flat in August at $2,230, while two-bedrooms actually fell 2.7 percent to $2,530, according to the Zumper National Rent Index.
Boston is the third most expensive apartment market in the country, behind only New York, No. 2, and San Francisco, No. 1, Zumper finds.
One big reason rents on homes are rising much faster is an extremely tight market.
While Boston right now is flooded with a growing number of luxury apartments – with lease sweeteners offered now on even the most expensive, $30,000 a month penthouses – there is only a limited number of single-family homes for rent in the Boston area.
While a quarter of all homes nationally are rentals, in the Boston area, it’s just 10.8 percent.
And the number of available single-family rentals in this already relatively small market has been dropping, falling almost a full percentage point from last year to 3.7 percent, the Real Property/Rent Range report finds.
Nationally, vacancy rates on rental homes are hovering at a higher 5.3 percent, with little change from last year.
Meanwhile, the cost of renting a ranch, cape, bungalow or colonial is only likely to jump even more as we head into the fall, Page said in a press statement.
“Considering the economic factors that contribute to Boston’s housing market, in addition to the overall economic health forecasted for the year, we expect rental prices will rise.”
This article does a good job in showing why these several years are an ARTIFICIAL INFLATED RENT BUBBLE and not what America has for centuries seen as market value in housing and rents. 1% Wall Street is again manipulating another market to reap lots of profit for the 1% and their 2% while sucking all the asset-value from our homes and soak renters of their disposable income trying to pay rent.
Here is where the need to fill US cities with immigrant and global 1% and their 2% becomes critical this coming decade. This is a manufactured rent bubble so it will break and these Baltimore apartment and rental home owners are going to be caught in yet another value-loss on their investment properties and they will lose any ability to find tenets as Americans are faced with Depression-era unemployment---lose of retirements, pensions, and our social programs and trusts disappear. So it will not be American citizens able to fill those market-value soaring rental apartments and rental housing-----
THE NEED TO MARKET GLOBALLY FOR THE FOREIGN RICH WILL CALLED A 'NECESSITY'.
'But now even the official numbers are beginning to limp behind reality'.
'Based on the surveys, the BLS figured the “owners’ equivalent rent” rose 3.3% year over year. That measure accounts for 24.2% of CPI. It is always ludicrously low. It’s the simplest way of hiding the impact of soaring housing costs, and the simplest way of keeping CPI artificially low'.
This is basically what happened in UK and London as it happened these few decades in International Economic Zones around the world----being brought to the US by Wall Street Baltimore Development and a very, very, very Bush/Clinton/Bloomberg neo-conservative/neo-liberal ONE WORLD Johns Hopkins.
This is what Obama and the FED has been calling a growing US GDP---as always only the rich are gaining as more and more wealth assets leave the US 99%.
How the Government Hides Inflation, as Housing Costs Soar
by Wolf Richter • June 16, 2016
Renters Squeezed by the Fed’s “Wealth Effect”For inflation lovers, the headline numbers that the Bureau of Labor Statistics reported today was benign: The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.2% in May, seasonally adjusted. Over the last 12 months, not seasonally adjusted, the index rose 1.0%.
The Atlanta Fed’s “sticky-price” CPI – “a weighted basket of items that change price relatively slowly,” as it says – wasn’t quite that benign. It rose 2.6% for the 12-month period, the hottest increase since April 2009!
So prices are rising. Not that this is a surprise to anyone trying to make ends meet on a monthly basis. But now even the official numbers are beginning to limp behind reality.
The report by the BLS had a mix of rising and falling prices. Energy got more expensive. The price of oil has jumped since February, and so the price of gasoline rose 2.3% in May, seasonally adjusted, after having soared 8.1% in April. Without seasonal adjustment, it jumped 6.6% in May. Fuel oil jumped 6.2%, natural gas rose 1.7%, electricity edged down 0.2%. But the energy index is still below last year with gasoline down 16.9%. So yes, energy prices are rising, but they’re still down from a year ago.
That cannot be said of rents.
The Consumer Price Index contains two housing components: “Owners’ equivalent rent of primary residence” (OER) and “rent of primary residence” (Rent). They purport to measure the cost of “Shelter,” which is the “consumption item” that a home provides and is thus included in the CPI. The cost of the home itself and any improvements to the home are considered an “investment,” not consumption, and therefore not part of the CPI.
“Owners’ equivalent rent” accounts for 24.2% of total CPI. “Rent of primary residence” accounts for 7.7% of CPI. Combined they account for 31.9% of CPI. “Shelter,” which adds those two and some other items, accounts for 33.2%, by far the largest and most important component of the CPI.
The data are obtained by survey. For “owners’ equivalent rent,” homeowners are asked what they think they would have to pay if they were renting the home. A measure of implicit rent. Would homeowners think that rents of their types of homes are increasing? Nope. They’re not renting. They have no idea. They can easily fool themselves.
Based on the surveys, the BLS figured the “owners’ equivalent rent” rose 3.3% year over year. That measure accounts for 24.2% of CPI. It is always ludicrously low. It’s the simplest way of hiding the impact of soaring housing costs, and the simplest way of keeping CPI artificially low.
For the component “rent of primary residence,” renters are asked what they’re currently paying in rent. Even if they’ve lived in a rent-controlled apartment for 20 years and pay just a fraction of market rent, it becomes part of the statistics, and not the rent that a new renter pays. Market rent data is available everywhere. But no. So “rent of primary residence” – however understated it may be – rose 0.4% from April and 3.8% from a year ago, the biggest year-over-year increase since January 2008:
Over the longer term? In the five-and-a-half years since September 2010, the index for rent, understated as it is, has risen 18.5%:
Why are rents rising sharply when incomes, especially for the lower 80%, have languished? It’s not like renters have more money to blow on rent and thus are driving up rents. On the contrary.
Since the Fed began its ZIRP and QE programs with the express goal of inflating asset prices, stocks and bonds have soared, home prices have soared, commercial real estate has soared, including apartments. Nearly all asset prices have soared. According to the Green Street Commercial Property Price Index (CPPI), commercial real estate prices have more than doubled since May 2009, when the Fed’s “wealth effect” started to kick in:
People don’t have to live in stocks and bonds, and those asset bubbles have little impact on the daily lives of regular folks. But they do live in homes.
But when apartment prices, along with the rest of commercial real estate, began to soar, landlords raised rents, on the essential logic of cap rates and return on investment. It has to work out for the investor, or else the whole over-leveraged house of cards comes tumbling down again, as it did in 2008.
Housing costs is where the Fed’s “wealth effect” is eating the lunch of regular folks. More than just their lunch. They’ve gotten hammered by the Fed’s policies. Just like savers, who’ve done the prudent thing all their lives, only to watch their income streams get confiscated.
Rents started rising in late 2010, according to the BLS. The commercial real estate boom had started 9 months earlier. The lag is natural. And rent inflation, as figured by the BLS, hasn’t been nearly as steep as commercial property price inflation, for two reasons: One, because the BLS systematically understates rent inflation. And two, because reality bites; renters can be squeezed only so far before there’s nothing left to squeeze.
For many renters, it’s a zero-sum affair: every dollar spent on rent is a dollar not spent on other items. In this way, rent inflation is a transfer of spending from healthcare, food, or electronic gadgets, to shelter. It’s not helpful for the overall economy. And it’s devastating for the people who have to struggle with it.
Sooner or later, with wages stagnant for many renters, market resistance starts kicking in. And this may now be happening in the first few cities, and a mega-landlord is preparing for a downturn. Read… It Starts: Apartment Glut in San Francisco & New York City
Have you heard any of this in these 2106 elections at national and local level all those 1% Wall Street players using the talking points would not be saying anything--BUT THEY ALL WILL BE MAD AS HECK AFTER THIS RENT BUBBLE CRASH----WANTING TO HOLD ALL THOSE WALL STREET FRAUDSTERS ACCOUNTABLE.
This is why I constantly say-----Baltimore City center will be filled with the global 1% and their 2%---an affluent upper-middle class may stand in for the short term but this transition to the rich will be fast
IF NOT STOPPED AND REVERSED----WE CAN DO IT IF WE THE PEOPLE FIGHT!
I can see where those Wall Street Baltimore Development 'labor and justice' organizations and our 5% to the 1% pushing establishment candidates each election are getting PAY-TO-PLAY real estate often in these city center communities no doubt thinking they will actually be included in that global 1% and their 2% in making Baltimore a US city deemed Foreign Economic Zone.
DOES ANYONE REALLY THINK A US 5% OF CITIZENS WILL REALLY BE INCLUDED IN GLOBAL WEALTH? REALLY???
Many of Baltimore's strongest 5% TO THE 1% RELIGIOUS LEADERS are attached to these real estate deals------often converting these churches to what will become future businesses and rental properties. Know how much taxes will soar in these areas in just two decades forcing anyone but the global 1% and their 2% out of these properties?
Federal Hill church hits the market for $950,000
Jun 21, 2016, 10:52am EDT
Morgan Eichensehr Reporter Baltimore Business Journal
A Federal Hill church is on the market for $950,000, continuing a trend in Greater Baltimore where religious properties are snapped up for new life as homes or businesses — or the wrecking ball.
In this case, the church building at 1404 S. Charles St. most likely won't be turned into a residential property, said Amelia Corley, a broker with Coldwell Banker Commercial, who is listing the property.
This church at 1404 S. Charles St. in Federal Hill is being sold.
CoStar Group Inc.
Corley said there has been buyer interest in the 15,336-square-foot property. But she would not divulge any information regarding interested buyers or why the church — which is still active — is going up for sale now.
The church was originally built in 1927 and is currently home to the Grace United Church of Christ.
A block down, a former church was demolished at 1500 S. Charles St. and several townhomes have been built in its place.
There are hundreds of churches in Baltimore and in recent years, many have been sold and converted into offices, condominiums, apartments or health clubs. The churches are often historic structures whose congregations have dwindled over the generations.
Most of the buildings are preserved and converted, instead of knocked down. One church in Fells Point, formerly St. Stanislaus Kostka Roman Catholic Church at 710 S. Ann St., was even made into a yoga studio and physical therapy offices.
An office building directly next to the church, at 1400-1402 S. Charles Street, is also for sale. The property, which was formerly home to a Mercy Medical Center facility, according to the listing, is priced at $695,000.
Corley said the neighboring property would not be packaged with the sale of the church.
Of course UK is calling these higher taxes on property all about fighting for UK citizens and working to bring real estate back to UK citizens. That of course is a bunch of hogwash as LONDON as a ONE WORLD city will remain that global 1% and their 2%!
'On the disposal of UK residential property, including rental properties; and Capital gains tax will be charged on the increase in value of the property from 6 April 2015 onwards'.
The 99% should be very concerned when a global Wall Street pol says he is concerned about fairness in these property tax schemes. Do we think these rich actually pay property taxes even on their homes? Oh, look below----it appears to be making that real estate property more valuable and creating the conditions of making foreign owners WANT TO STAY.
Raising taxes on property will be key to pushing each income level citizen out of these US cities deemed Foreign Economic Zones. Remember, the rich don't pay taxes whether corporate or personal so if you are a 5% player trying to keep a property in a city center for the global rich---you will not have a chance.
'and that prices in the capital will therefore continue to rise'.
Could the new UK property tax affect you?
Foreign owners of UK residential property face a new capital gains tax (CGT) if they sell after 6 April 2015. Some property experts believe sales will rise ahead of this date, pushing up the supply of available London property this year. Here’s what you should bear in mind, if you’re thinking of taking this opportunity to buy a place of your own.In December 2013, a new tax affecting foreign owners of UK property was announced by George Osborne, UK Chancellor of the Exchequer. “It is not right that those who live in this country pay Capital Gains Tax when they sell a home that is not their main residence, but those who don’t live here do not,” he told the UK parliament as part of his Autumn Statement. “That is unfair, so from April 2015 we will introduce Capital Gains Tax on future gains made by non-residents who sell residential property here in the UK.”
HM Treasury and HMRC have now published a consultation document setting out their proposals which are broadly that capital gains will apply: To non-UK resident individuals, trustees, certain closely-held fund structures and companies; On the disposal of UK residential property, including rental properties; and Capital gains tax will be charged on the increase in value of the property from 6 April 2015 onwards. The Consultation is open for comments until the 20 June 2014 and the final version of the rules should not be expected until the end of the year.
In the meantime, anyone considering buying a property in the UK in the near future will need to bear such things in mind and keep an eye on official announcements from the UK tax authority, HM Revenue & Customs (HMRC).
Please note that Barclays does not give tax advice and you should seek independent advice tailored to your individual circumstances.
Why the new tax is being imposed
One of the reasons for George Osborne’s decision was the rapid growth in London property prices, which many property experts believe could turn into an investment bubble. The rate of annual growth in London property prices was more than double the UK average in 2013. You can find out more about this trend, and about what’s happening in specific boroughs of London, via the UK's Office for National Statistics.
Property experts agree that international buyers were responsible for much of this growth. For example, UK property firm Savills estimates that, in the year to June 2013, 70 per cent of new-build properties bought in Central London went to foreign investors, while 30 per cent of the capital’s luxury homes worth more than £1m were bought by non-UK residents.
At the time of his announcement, the Chancellor said the new tax would bring the UK more into line with other countries – for example, non-residents pay CGT on property sales in the US, and in European countries such as France, Spain and Switzerland. It also follows a similar change in the rules that occurred in April 2013, when CGT became payable on UK properties sold by companies – including those based offshore.
What happens next?
It is still too early to tell in what ways the new CGT will affect the London market, if at all. However, the reaction of property companies has been mixed. Some predict that many foreign owners of UK property will decide to sell before the April 2015 deadline, to avoid having to pay any CGT, and that the supply of available UK properties will therefore increase. Others suggest that foreign investors in London property will remain “unfazed” by the new tax, because they feel it still represents a “safe haven investment” compared with other types of asset, and that prices in the capital will therefore continue to rise.
If, on the other hand, you are considering buying a UK residential property, you will need to factor a CGT estimate into your calculations. Many foreign buyers are attracted to UK property because it gives them a place to use as a second family home while acting as an investment. However, any gains you could make on such an investment would obviously be affected by the new CGT going forward. You can read more about the various costs involved in buying a London property, and what you should consider before committing to a purchase in the UK capital, in our article “Buying a London property”.
The new CGT rules: what we know
WHAT WE KNOW WHAT WE DON'T KNOW YET
The new CGT will come into force 6 April 2015. Any sales of UK residential property made before that date, whether of a main residence or an investment home, owned directly by non-resident individuals should not incur a tax charge.The intention is that individuals will pay the same rate of capital gains tax as UK resident individuals: currently either 18% or 28% depending on whether they are higher rate tax payers. The government will confirm the rate for non-UK resident entities at a later date.
In April 2013, the UK government introduced a similar rule for companies that bought UK residential properties. When this rule came into force, it applied to future gains in property value only and did not include any retrospective CGT charge.The Consulation proposes that they will get the annual exemption from CGT.
Help with your London property purchase
Barclays International Banking offers a range of sterling mortgage products aimed specifically at international buyers who may be interested in the UK market. These include fixed-rate mortgages for those who wish to be clear in advance about the level of their monthly repayments, variable-rate mortgages that track the Bank of England base rate and a mix-and-match option that includes elements of both types. These loans will be secured against the property. If you don’t keep up repayments, you may lose the property.
Here we see what our US cities deemed International Economic Zones will look like if installed. All that tens of trillions of dollars in fraud from our government coffers and people's pockets are simply going to build these gaudy palatial-type housing. Russian Oligarchs did it after USSR Perestroika---this is the US Perestroika----Baltimore is already seeing some signs of huge estates with UnderArmour Plank----but we will see Baltimore City Center redeveloped minus the row houses with ever-larger giga-mansions.
WHERE WILL WE THE PEOPLE BE? IF NOT BANISHED IN THE GLOBAL LABOR POOL TO UPPER-MONGOLIA OR GHANA THE GLOBAL LABOR FORCE WILL LIVE, EAT, WORK, AND BE SCHOOLED ON GLOBAL CORPORATE CAMPUSES.
Controversial Topics Controversial as it may, if you're goal is to find the truth of the topics shown here, then I suggest you watch these and other videos. These crimes on the people should be unmasked, and these will continue until the American people wake up and put a stop to the evil perpetrators. The first step is to understand and have an open mind, unbelievable and ugly as it may, that this could really be happening...AMOR PATRIAE
CONTROVERSIAL TOPICS Friday, July 3, 2015
Forget the McMansion - this is the giga-mansion Forget the McMansion - this is the giga-mansion
London's billionaires moan of housing crisis because the capital's mansions are 'like broom cupboards' when compared to their super-mansions around the globe London has the highest concentration of billionaires in the world - with around 140 now owning a home the city But they find the average London mansion too small when compared to their palatial homes in other countries Now many of those in 'top one per cent' are buying already grand homes and extending them into personal palaces Billionaires in London are experiencing their own housing crisis because mansions in the capital are simply not big enough, according to experts. London has the highest concentration of billionaires in the world - with around 140 now owning a home the city - far more than New York, which has 103, Moscow, which has 85, Hong Kong, which has 82 and Paris's 33. So while many British people struggle with the staggering property prices for both renting and buying in the capital, the super-rich are having their own 'first world' problem. London's billionaires are bemoaning the fact that many of the capital's mansions are 'too small' compared to their other homes - so they are buying luxury homes and extending them into 'personal palaces' (Pictured is 1 Cornwall Terrace which is being transformed) +8 London's billionaires are bemoaning the fact that many of the capital's mansions are 'too small' compared to their other homes - so they are buying luxury homes and extending them into 'personal palaces' (Pictured is 1 Cornwall Terrace which is being transformed) Cornwall Terrace is one London property being transformed into a mega-mansion. It was bought by Her Highness Sheikha Mozah bint Nasser of Qatar, for her favourite son, the current Emir Sheikh Tamim bin Hamad Al Thani +8 Cornwall Terrace is one London property being transformed into a mega-mansion. It was bought by Her Highness Sheikha Mozah bint Nasser of Qatar, for her favourite son, the current Emir Sheikh Tamim bin Hamad Al Thani The three homes on Cornwall Terrace cost a combined total of £120million - the owner wants to transform them into a single dwelling +8 The three homes on Cornwall Terrace cost a combined total of £120million - the owner wants to transform them into a single dwelling The terrace at Cornwall Terrace. Plans to extend the Grade I-listed home have been initially knocked back as it goes against Westminster Council's policy for reducing the number of homes in the borough - but revised plans are already in the pipeline +8 The terrace at Cornwall Terrace. Plans to extend the Grade I-listed home have been initially knocked back as it goes against Westminster Council's policy for reducing the number of homes in the borough - but revised plans are already in the pipeline They want fully-furnished, ready-to-live-in mega homes but London's top properties are like 'broom cupboards' when compared to those in many billionaires' home countries. So they are knocking individual mansions together, restoring and extending already grand homes and transforming commercial properties into family palaces. Beauchamp Estates has released its Ultra Prime Barometer, a study on billionaires and their property habits. Gary Hersham, of Beauchamp, said: 'London commentators often forget that in Russia, the Ukraine and Middle East the homes of the super-rich are massive compared to traditional London homes. 'Palatial properties in places like Ukraine, Qatar and Saudi Arabia can be up to 150,000 sq/ft in size. 'So an 8,000 sq/ft London townhouse is like a broom cupboard when compared to super-rich palaces elsewhere on the globe. 'This is why some extremely adroit super-rich vendors are creating a new level in the London property market and palaces that are a size level above anything currently for sale in the marketplace. 'They know that, like a coveted painting, the rarity value and quality of such a property will ensure that it holds and increases in value. 'There will always be super-rich buyers available for truly unique trophy mansions at this top one per cent of the London housing market.' Number 13-4 Princes Gate - which was the childhood home of JFK - was bought by the Saudi Royal Family who plan to extend it +8 Number 13-4 Princes Gate - which was the childhood home of JFK - was bought by the Saudi Royal Family who plan to extend it Chesterfield Gardens (pictured) in Mayfair is currently being transformed into a mega-mansion by billionaire John Caudwell +8 Chesterfield Gardens (pictured) in Mayfair is currently being transformed into a mega-mansion by billionaire John Caudwell Properties currently being transformed into personal palaces or going through planning stages in London include 1-3 Cornwall Terrace, Cambridge, Witanhurst and 14 Princes Gate. Cornwall Terrace was bought by Her Highness Sheikha Mozah bint Nasser of Qatar for her favourite son, the current Emir Sheikh Tamim bin Hamad Al Thani. The three homes cost a combined £120 million and the owners now want to transform it into a single dwelling. However, their plans have been initially knocked back as it goes against Westminster Council's policy of reducing the number of homes in the borough - but revised plans are currently in the pipeline. Witanhurst, in Highgate, will be worth £300million when it is completed and will be the capital's second largest home after Buckingham Palace. It is believed to be owned by a Russian billionaire who secretly bought it in 2008. 94-95 Piccadilly aka Cambridge House, a London property being transformed into a mega-mansion +8 94-95 Piccadilly aka Cambridge House, a London property being transformed into a mega-mansion Rutland Gate, in Knightsbridge, a 45 bedroom London mansion which is one of the few uber-uber homes in London +8 Rutland Gate, in Knightsbridge, a 45 bedroom London mansion which is one of the few uber-uber homes in London Meanwhile number 14 Princes Gate, which was once the childhood home of JFK, was bought by the Saudi Royal Family who plan to turn it into another £300 million home. Cambridge House was acquired by Motcomb Estates in 2011, and in April 2013 the company won approval to develop it into a 60,600 sq/ft mega-home worth £250million. The mansion will have 48 rooms, a 35,000 bottle wine cellar and an underground swimming complex. Mr Hersham added: 'The reason why these grand former embassy buildings like 1-3 Cornwall terrace and 14 Princes Gate are being converted back to their original residential use, and also being enlarged into homes providing over 30,000 sq/ft of living space, is that in both cases is quite simply there isn't anything available on the marketplace at this size in London. 'Owners are creating their own marketplace and converting opulent buildings into new palatial private homes. 'With their huge resources, the super-rich building new mega-palaces in London can afford to be patient, they employ planning consultants, lawyers, architects and contractors to deal with the frustrations of London's complex planning system. 'An ordinary Londoner planning an extension to their home can be driven mad by planning paperwork, red tape and delays. 'Not the super-rich, they can employ an army of consultants to 'suck up' any frustration.' Jennifer Aniston leads LA protest against the rise of 90,000-square-foot properties which they claim are ruining life for other millionaire homeowners Developers are building giga-mansions in Los Angeles's exclusive Beverly Hills and Bel Air neighborhoods But these sprawling homes have sparked outrage among wealthy locals, including actress Jennifer Aniston They claim the residences are creating noise in the area, invading their privacy, and endangering their homes One mother said construction trucks are driving through Bel Air like 'freight trains', ruining 'peace and quiet' Fred Rosen, who built Ticketmaster, recently set up Bel-Air Homeowners Alliance out of anger at developers City officials are reviewing plans by developer Nile Niami to construct 90,000sq ft home to sell for $150million For some billionaires, a McMansion in an upscale Los Angeles neighborhood just isn't enough. So, high-end developers are building giga-mansions - luxury homes covering up to a whopping 90,000 square feet with jaw-dropping features. But these sprawling residences, in Beverly Hills and Bel Air, have sparked outrage among wealthy residents, including actress Jennifer Aniston. They claim that the giga-mansions are creating noise in the area, invading their privacy, and endangering their homes by destabilizing the hillside. They have been complaining to city officials - and have even set up a homeowners' alliance - in a bid to put a stop to the ostentatious developments. Aniston, 46, whose $21million Bel Air mansion - which she shares with her fiancé Justin Theroux - covers a fewer 8,500 square feet, told officials that the 'very idea that a building of 90,000 square feet can be called a home' seems 'at the least a significant distortion of building code', ABC reported. Scroll down for video Kicking off a trend: Experts believe the boom for LA giga-mansions began with the 2011 sale of TV producer Aaron Spelling's 56,000-square-foot home (pictured) in Holmby Hills for $85million. They also say only 30 to 40 per cent of giga-mansion buyers are foreign +21 Kicking off a trend: Experts believe the boom for LA giga-mansions began with the 2011 sale of TV producer Aaron Spelling's 56,000-square-foot home (pictured) in Holmby Hills for $85million. They also say only 30 to 40 per cent of giga-mansion buyers are foreign 'Too big': This sprawling residence, dubbed Palazzo di Amore (the Palace of Love), in Beverly Crest, is among numerous giga-mansions in Los Angeles's Beverly Hills and Bel Air neighborhoods, have sparked outrage among wealthy locals, including actress Jennifer Aniston +21 'Too big': This sprawling residence, dubbed Palazzo di Amore (the Palace of Love), in Beverly Crest, is among numerous giga-mansions in Los Angeles's Beverly Hills and Bel Air neighborhoods, have sparked outrage among wealthy locals, including actress Jennifer Aniston Aniston, 46, told city officials that the ' very idea that a building of 90,000 square feet can be called a home' seems 'at the least a significant distortion of building code'. +21 Developer Mohamed Hadid specializes in building enormous mansions +21 Housing feud: Aniston (left), 46, told city officials that the ' very idea that a building of 90,000 square feet can be called a home' seems 'at the least a significant distortion of building code'. Right, developer Mohamed Hadid, who specializes in building enormous mansions A lot smaller: Aniston's $21million mansion (above) in Bel Air - which she shares with fiancé Justin Theroux - covers 8,500 square feet +21 A lot smaller: Aniston's $21million mansion (above) in Bel Air - which she shares with fiancé Justin Theroux - covers 8,500 square feet One home to have angered residents is a 30,000-square-foot creation of real estate developer and model Gigi Hadid's father, Mohamed Hadid. Hadid, also the ex-husband of 'Real Housewives of Beverly Hills' Yolanda Foster, is erecting the glass, steel and cement mansion in Beverley Hills. At 103 feet tall, it stands 67 feet above Los Angeles's 36-foot height limit, and has been nicknamed the Starship Enterprise by fuming neighbors. When completed, the circular-shaped creation will sit just yards away from entertainment attorney Joe Horacek's door, ABC's Nightline reported. 'I feel the privacy is completely and totally gone,' Horacek told the program, which airs at 12.3am (EST) on Friday night. In an interview with the New York Times, the prolific developer added: '[Hadid's] violated just about every regulation that applies.' To construct the property, which will feature two wine cellars and an infinity pool when completed, Hadid has excavated enormous amounts of soil from the hillside surrounding Horacek's home. This has left the attorney concerned that the giga-mansion could end up 'crumbling' on top of his own house. Last November, city officials revoked Hadid's permits after residents' complaints led them to discover that the developer had added some unapproved features to the mansion. Hadid has since returned to the approved building design, meaning he can finish the project - to Horacek's and others' anger. According to Nightline, Hadid himself lives in a 50,000-square-foot mansion in Beverly Hills with a ballroom, a Turkish bath and a huge infinity pool. A close view: One home to have angered locals is a 30,000-square-foot creation of Hadid, which has been nicknamed the Starship Enterprise by fuming neighbors. When completed, the circular-shaped creation will sit just yards away from entertainment attorney Joe Horacek's door. Above, Horacek (left) shows a Nightline reporter how the close the giga-mansion (in the background) is to his house +21 A close view: One home to have angered locals is a 30,000-square-foot creation of Hadid, which has been nicknamed the Starship Enterprise by fuming neighbors. When completed, the circular-shaped creation will sit just yards away from entertainment attorney Joe Horacek's door. Above, Horacek (left) shows a Nightline reporter how the close the giga-mansion (in the background) is to his house Record price: Last year, the Palazzo di Amore (pictured), which Hadid built with the aid of architect Bob Ray Offenhauser and designer Alberto Pint, went on the market for a staggering $195million - making it the most expensive house publicly listed for sale in the U.S.. +21 Record price: Last year, the Palazzo di Amore (pictured), which Hadid built with the aid of architect Bob Ray Offenhauser and designer Alberto Pint, went on the market for a staggering $195million - making it the most expensive house publicly listed for sale in the U.S.. Sprawling: The villa features more than 35,000 square feet of living space, including an entertainment complex and a ballroom (pictured) +21 Sprawling: The villa features more than 35,000 square feet of living space, including an entertainment complex and a ballroom (pictured) Safari theme: The covered portico overlooking a huge reflecting pool makes the space feel like a safari lodge when the sheer are drawn +21 Safari theme: The covered portico overlooking a huge reflecting pool makes the space feel like a safari lodge when the sheer are drawn The giga-mansion features a 128-foot-long reflecting pool with fountains, It also includes a Turkish bath Jaw-dropping features: The giga-mansion features a 128-foot-long reflecting pool with fountains (seen left), and a Turkish bath (right) Last year, a gated 25-acre estate, dubbed 'Palazzo di Amore' (Palace of Love), that the developer built with the aid of architect Bob Ray Offenhauser and designer Alberto Pint went on the market for a staggering $195million - making it the most expensive house publicly listed for sale in the U.S.. The sprawling villa features more than 35,000 square feet of living space, including a two-story entrance hall with two sweeping staircases. It also includes a 15,000-square-foot entertainment complex, complete with a disco/ballroom, a revolving dance floor, a DJ booth and a laser system. Inside the entertainment area, up to 250 guests can make use of a 50-seat theater, a bowling alley and a game room under hand-painted ceilings. They can exit the complex via a floating-style, glass-floor pathway, which sits over several swimming pools lined by 70-year-old olive trees. A grand home: Hadid himself lives in this 50,000-square-foot mansion (pictured) in Beverly Hills with a ballroom and a huge infinity pool +21 A grand home: Hadid himself lives in this 50,000-square-foot mansion (pictured) in Beverly Hills with a ballroom and a huge infinity pool Plenty of space: In addition to the ballroom, which can seat 300 people, Hadid's home also includes an ornate Turkish bath (right) Hadid (second right), the ex-husband of 'Real Housewives of Beverly Hills' Yolanda Foster, is pictured with his daughter Gigi (second left), as well as Shiva Safai (far left) and Alana Hadid (far right) at the grand opening at Royal Personal Training on January 29 in Los Angeles +21 Hadid (second right), the ex-husband of 'Real Housewives of Beverly Hills' Yolanda Foster, is pictured with his daughter Gigi (second left), as well as Shiva Safai (far left) and Alana Hadid (far right) at the grand opening at Royal Personal Training on January 29 in Los Angeles Enormous: The majority of the people who purchase LA giga-mansions (such as this one) are either local, rich professionals or stars +21 Enormous: The majority of the people who purchase LA giga-mansions (such as this one) are either local, rich professionals or stars Once outside, residents can swim in a 128-foot reflecting pool, relax in a Turkish-style spa, walk through formal gardens and play on a tennis court. They can also visit a beautiful vineyard, which produces 400 to 500 cases of wine a year under its own private label, the LA Times reported. In defense of his current giga-mansion project next to Horacek's home, Hadid said: 'There is a need for it, there are customers asking for it. They want to have a splash, to have 200-300 people at a party, they need to have several bar areas, an outdoor area, something specific that is different.' But many celebrities and wealthy professionals disagree that the neighborhoods of Beverly Hills and Bel Air 'need' giga-mansions. Fred Rosen, who built Ticketmaster, recently set up the Bel-Air Homeowners Alliance after witnessing enormous properties spring up around him. He told Nightline that construction trucks are constantly driving through the exclusive neighborhood, while dirt continues to be dug out of the hillside. Construction work: In many cases, McMansions are torn down, so that bigger, more pricey properties can be built in their place (above) +21 Construction work: In many cases, McMansions are torn down, so that bigger, more pricey properties can be built in their place (above) +21 'Ruining the area': Fred Rosen, who built Ticketmaster, recently set up the Bel-Air Homeowners Alliance after witnessing enormous properties spring up around him, like Palazzo di Amore (pictured). He said construction trucks are constantly driving through the area +21 'Ruining the area': Fred Rosen, who built Ticketmaster, recently set up the Bel-Air Homeowners Alliance after witnessing enormous properties spring up around him, like Palazzo di Amore (pictured). He said construction trucks are constantly driving through the area Indeed, the alliance's latest petition, which aims to get two control ordinances passed in the city, reads: 'The excavation and hauling of dirt has been the single largest risk to the health and safety of residents in Bel Air and is endured on a day to day basis on our city streets. The result of the digging and hauling is that we have literally thousands of unsafe truck trips up and down our narrow streets and roads placing residents in danger.' Maureen Levinson, who lives down the road from a 90,000-square-foot Bel Air mansion which is still being built, is a member of the alliance. 'There’s wildlife here, and that’s the way Bel Air used to be, very peaceful and quiet,' she told Nightline, comparing the construction trucks to 'freight trains'. The 90,000 square foot home will be the largest in the neighborhood, with 'a cantilevered tennis court and five swimming pools', according to The Los Angeles Business Journal. Mr Rosen said this will likely mean up to '200 construction trucks a day' driving through the area in upcoming months. The property, which was dreamed up by film producer-turned-developer Nile Niami, is expected to sell for around $150million once completed. Tour of $135m Beverly Hills 'Godfather' mansion (related) Saudi Arabian prince Abdulaziz bin Abdullah bin Abdulaziz al-Saud (pictured) plans to erect a massive 85,000-square-foot mansion in Los Angeles. But Fred Rosen says the excavation and hauling of dirt to build such mansions is a safety risk to residents Opposing views: Saudi Arabian prince Abdulaziz bin Abdullah bin Abdulaziz al-Saud (left) plans to erect a massive 85,000-square-foot mansion in Los Angeles. But Rosen (right) says the excavation and hauling of dirt to build such mansions is a safety risk to residents Other giga-mansion constructions in Bel Air and Beverly Hills include a 70,000- to 80,000-square-foot Mediterranean estate that is being built for a Qatar national, and plans by Saudi Arabian prince Abdulaziz bin Abdullah bin Abdulaziz al-Saud to erect a massive 85,000-square-foot mansion. The prince's proposal was immediately met with anger by Bel Air residents, and city officials are currently reviewing it, the Times reported. Experts believe the boom for giga-mansions began with the 2011 sale of TV producer Aaron Spelling's 56,000-square-feet home for $85million. They also say only 30 to 40 per cent of giga-mansion buyers are foreign - the majority are either local, rich professionals or stars. In many cases, McMansions are torn down, so that much bigger, more expensive properties can be built in their place. Has the collapse of the Russian economy finally hit the super-rich? Sumptuous palaces owned by oligarchs begin to appear on Moscow's property market for £70million 97-acre estate in capital's 'Beverly Hills' has nine bedrooms, two swimming pools, spa and custom chaise lounge Fully-furnished golden palace is one of several for sale in Rublyovka suburb, with others costing £85m and £98m But buyers have been put off by rouble's collapse and economic woes, with many buying homes outside Russia And in normal Moscow supermarkets, shelves are bare as Russia bans imports from sanction-imposing nations It looks like a glittering golden palace fit for a Russian tsar, and its appearance on the Moscow property market is perhaps a sign of the crisis facing the super-rich amid the rouble's collapse. With nine sumptuous bedrooms, Baroque-style living areas and two swimming pools - as well as being decorated with gold throughout - this home looks almost too lavish for royalty. Chandeliers hang from the ceilings and every room is fitted with exclusive custom-made ornate furniture, with the mansion sitting amid towering pine trees in its own 97 acres. Scroll down for video Fit for an oligarch: This sumptuous palace is for sale in Moscow's most elite suburb - and is only the third most expensive on the market +21 Fit for an oligarch: This sumptuous palace is for sale in Moscow's most elite suburb - and is only the third most expensive on the market Luxury: The £70million estate has 97 acres of pine forest and custom-made furniture, with copious amounts of decorative gold throughout
+21 Luxury: The £70million estate has 97 acres of pine forest and custom-made furniture, with copious amounts of decorative gold throughout Excess: The luxury of the mansion, including its snooker room, is a testament to the eye-watering wealth of some in post-Soviet Russia +21 Excess: The luxury of the mansion, including its snooker room, is a testament to the eye-watering wealth of some in post-Soviet Russia But all this luxury comes at a price, with only billionaire oligarchs - many of whom have suffered mega losses due to the rouble fall - likely to be able to afford the hefty $109 million (£70 million) price tag. Located in Russia's 'Beverly Hills', it is described by estate agents as being 'in the style of the country estates of the European aristocracy'. The identity of the seller is not disclosed. In its sales material Sotheby's International Realty states: 'The interiors are reminiscent of Baroque palaces. 'The rooms have a lot of gold, natural stone and precious wood. In some rooms the floors are made of natural marble and the billiard room and library are solid oak and mahogany.' The 'golden palace' is located in the prestigious Rublyovka suburb in Moscow, where A-listers reside and property prices are some of the highest in the world. Snug: One of the house's nine bedrooms is themed entirely in red, black and gold, even down to the colours of the wooden floor +21 Snug: One of the house's nine bedrooms is themed entirely in red, black and gold, even down to the colours of the wooden floor Luxury: The walk-in shower, set on a central marble plinth, is big enough for an oligarch and a few mistresses for good measure +21 Luxury: The walk-in shower, set on a central marble plinth, is big enough for an oligarch and a few mistresses for good measure Tub: Even the bathrooms do not escape the marble, chandeliers and gold. The collapse of the rouble raises doubts over the home's future +21 Tub: Even the bathrooms do not escape the marble, chandeliers and gold. The collapse of the rouble raises doubts over the home's future Panelling: The study has hints of James Bond. The suburb of Rublyovka, where the mansion is, became a Beverly Hills in the 1990s +21 Panelling: The study has hints of James Bond. The suburb of Rublyovka, where the mansion is, became a Beverly Hills in the 1990s Entertaining: Should you buy the palace, there is ample enough room to invite round all your oligarch friends for caviar and fizz +21 Entertaining: Should you buy the palace, there is ample enough room to invite round all your oligarch friends for caviar and fizz The three-storey main residence, which has similarities to a modern French chateau, has 2,300 square metres of living space. Inside, the bedrooms are particularly notable, with each one dripping in gold and decorated in a different style. Some feature four-poster beds, while others boast expensive works of art on the walls, but all resemble presidential suites in luxury hotels. One of the main living areas contains a grand piano, while the spa and massage zone has hints of Arabia about its decor. Swimmers taking advantage of the larger indoor swimming pool will notice the Sistine Chapel-esque painting on the ceiling. The mansion comes completely fully-furnished, with some of the pieces made by European cabinet makers. Rublyovka, in pleasant woodland on one side of the Moscow River, became a Russian equivalent of Beverly Hills in the 1990s following the collapse of the Soviet Union. The western suburb quickly became home to billionaire oligarchs, showbusiness stars, government officials and industry tycoons.