Chinese Real Estate bubble has popped. Domain bubble popping next?

[Premium gTLD]

The real Chinese investment money is, or was, in foreign real estate. The sky-high domain valuations based on Chinese investors looking for a place to park some cash followed real estate investing.

If you have an investment model based on purchasing random LLLL.net, LLLLL.com, NNNN.com, NNNNN.com or NNNNNN.com, it might be time to dump as many of those domains as possible right now because it appears the Chinese investment bubble is about to pop.

WSJ - Chinese Pull Back

Chinese Demand for Real Estate Waning

 

[juanda]

 

[Trader247]

Advising someone to dump everything because another asset class is suffering is not wise...Not everything is correlated and certainly in this case, the two shares/property vs domains are uncorrelated.
The 2 main reasons why we saw so much inflow and will continue to see much more in the new year is because Chinese investors are looking for a new asset classes beyond the volatile share and property markets.
Given the huge capital sitting on the sidelines and soon to be sitting on the sideline, the relatively small sums needed to buyout say NNNNNN.com (already happened), its hard to see a collapse in shorter domain names.
A correction like many have pointed out is a natural market movement where prices have risen sharply. This allows prices to form another solid base, creating market resistance (or a floor price in domain terms) which will be the next phase of an upward price movement. I would say look for further action post holidays but who knows with this crazy domain market.
Scaremongering.club is available for $4.99?

 

[cocaseco]

This is simply one speculative opinion. There is nothing of substance to support the decision. Use it as ONE data point in a constantly evolving industry. It is largely a different investor that is buying domains than the one who is buying million dollar foreign properties.

 

[juanda]

.... And I see how the information of those websites, has made Chinese and West buyers suddenly STOP to purchase 5L.com. Exactly the same than LLLL.net, LLLLL.com, NNNN.com, NNNNN.com or NNNNNN.com

 

[djum]

If you have an investment model based on purchasing random LLLL.net, LLLLL.com, NNNN.com, NNNNN.com or NNNNNN.com, it might be time to dump as many of those domains as possible right now because it appears the Chinese investment bubble is about to pop.

So which one is it, "bubble has popped" like in headline or "bubble is about to pop".

You seem undecided yourself and trying to give financial advices here, lol.

How about follow your own advice and dump your domains first, as many as possible, then speak up. Before it happens, I call it another bullshit advice.

You invest in newTLDs like .club, etc. Is that the reason behind bashing old TLDs and short domains?

 

[Mahogany]

Pure propaganda.

Big fish trying to buy cheap, imho.

 

[djum]

For the article in WSJ about Chinese pulled back, here's article in NYTimes about Chinese buying more actively than ever:

http://www.nytimes.com/2015/11/29/b...hinese-cash-floods-us-real-estate-market.html

Go figure.

 

[Flipsbay]

please dump all your domain specially 5l cp domains so i can buy them at cheap price. Contact me mate i will buy for sure.

Thanks.

 

[Flipsbay]

if you are talking about 5l.com cp down fall with in only 20 days of buy out do you really think people who invested millions on the domain just a few weeks ago they will dump just now no way even if china drop the ball big players will play just to save there money.

Lol

 

[The New Guy]

I was one of those people warning about a real estate bubble a decade ago. I received the same sort of pushback and downplaying when I brought it up as is being shown in the responses here. If someone's financial and emotional well being is tied to there not be a problem, they will not acknowledge the problem or even the possibility of a problem.

It's not just real estate - China has had their stock market bubble this year, too. They're sending people to jail over that. Their economy, and economic forecasts, have been a house of cards for years, and they're doing whatever they can to keep it going - including naming and blaming 'economic conspirators' and speculators.

Domains as a safe haven investment make no sense. They're second only to physical real estate in-country to being easily discovered and confiscated. If the government in china wants to confiscate a domain they know right where to look - the registrar - and what to do - order them to turn it over or else.

If you had money you wanted to get out of china, and out of reach of the government, would anyone here seriously put it into domains that could be taken away not by physically having to locate it, but by just going to the registrar who they can find in one second?

 

[alcy]

The real Chinese investment money is, or was, in foreign real estate. The sky-high domain valuations based on Chinese investors looking for a place to park some cash followed real estate investing.

If you have an investment model based on purchasing random LLLL.net, LLLLL.com, NNNN.com, NNNNN.com or NNNNNN.com, it might be time to dump as many of those domains as possible right now because it appears the Chinese investment bubble is about to pop.

WSJ - Chinese Pull Back

Chinese Demand for Real Estate Waning

I still bet if people would dump them cheap, you'd be buying heh.

 

[djum]

Funny thing that even the article about so called slowdown in Aussie housing market, ends with:

"But there are good reasons to believe that Chinese buying of property abroad will trend upwards in the long term. The analysts pointing to China's growing middle-class, who have an appetite for new assets. Combine that with a shortage of domestic investment options and ongoing capital account liberalisation, and the structural trend of Chinese money looking for an overseas home stays strong".

Same in WSJ article:

"Real-estate consultants and brokers say the pullback likely is temporary. Many Chinese view U.S. real estate as not only a good investment but as a haven for savings. Some Chinese buyers also figure a U.S. address would make it easier for their children to enroll in an American college."

"Chinese individuals are limited to annual overseas investments equal to about $50,000. For years, Chinese have surpassed that limit, in part, by funneling money through relatives and employees. In recent months, the government has made it tougher to transfer money abroad, said real-estate brokers in both countries.

“It’s like barbarians at the gate,” said John Chang, a real-estate broker with Re/Max in New York City. Chinese families want to buy, he said, but “just can’t get the money out.”

And liquid domains can help to solve this problem. Buy domain, when you in China, go to USA or Australia, w/o braking Chinese law, carry only 50K, sell domain to reseller, receive money to US bank or Paypal, transfer it to real-estate agent, buy your dream house.
Bingo!

 

[juanda]

I still bet if people would dump them cheap, you'd be buying heh.

Exactly the same I thought ...

 

[Flipsbay]

This is going to be this weeks or maybe moths top post for sure.

 

[alcy]

i can see how longer term 4l chip domains will go down in price. how low not sure.. but probably a lot.

but there is no way in the world you will be seenig 4l.com of any kind selling for less than $100 ever again. ever forever.

 

[Flipsbay]

4l.com was begging for its deserved valuation for years. Just to remind all of us that just before 4l.com price up we have seen a very hard time with 4l.com, there were thousands of 4l at godaddy closeout. Just when people thought its time to sell boom all was bought back and price was never back to 20$ again.

 

[Flipsbay]

just to give you a bit info about 5l.com not only chinese premium domains where registered for last few weeks also CVCVC patterns was registered in quite a good number.

I have been following the 5l.com market just when i missed 4l.com boat and i opened a lot of posts here that i have seen 5l.com demand increasing nobody listened. But i understand its there hard earned money they have the right to do anything with in.

 

[alcy]

just to give you a bit info about 5l.com not only chinese premium domains where registered for last few weeks also CVCVC patterns was registered in quite a good number.

I have been following the 5l.com market just when i missed 4l.com boat and i opened a lot of posts here that i have seen 5l.com demand increasing nobody listened. But i understand its there hard earned money they have the right to do anything with in.

I did not follow 5l.com much

who is buying/regging? chinese people or domainers?

 

[Flipsbay]

More chinese then western but numbers are not that diffrent, 60/40 i would say. You can check a lot of info at my site LLLLLs.com if you like.

Thanks.