[Chapter 676: American Bubble]
In Houston's White Plaza, although there were no colorful flags waving, it was still bustling with activity.
The shopping mall model was not originally conceived by William White. However, White Center differed from other shopping centers in some ways.
In the United States, land was not considered scarce. Therefore, wealthy individuals generally preferred to live in villas.
Usually, the developers would just claim a piece of land, then fix up the roads, and install various pipes and wiring. Once all that was done, the property could essentially be sold. If you thought of it as pre-sale property, you were completely mistaken. Real estate was real estate, land was land; it was up to you whether you wanted to build something ultra-luxurious or just something passable.
Anyway, the price of land was fixed; the style of the building and its interior would cost extra.
Affordable housing?
Cough cough. That doesn't exist. You could choose the style of architecture, but specifications were a different story. Besides, a carpet alone was billed separately -- why bother getting creative?
White Center, it seemed, did not belong to this type. Moving high-end apartment buildings into a shopping mall? Man, if someone's spoiled daughter moved in, what kind of life would they have?
"Boss, your prices are quite outrageous."
"Please, I never intended to sell. You're just a hayseed, do you even know what a high-end community is?"
Jason admitted he had never heard of it. Wasn't it just a high-end apartment building? What else could you do with it?
"A so-called high-end community can be summed up in one word: expensive. Look, others start at two hundred thousand; I'm at five hundred thousand."
"How can that even work? You're nothing but a swindler, a big-time swindler. Why would anyone buy?"
"Why? Like people flocking to their kind, high rollers are all cut from the same cloth. Being expensive just distinguishes them from ordinary folks. You see, they have a twenty-four-hour indoor pool, various gym clubs, English butler services. And for a mere few hundred thousand more? It's practically a steal. I swear I'm losing money here -- don't support my business, buddy; I'm in deep trouble."
Jason and his wife were left speechless. William White's guests were equally astounded.
"Daddy, are these all free?"
A group of beautiful women burst into laughter. At this moment, only Athena would be so out of place.
"Well, Athena, you know, there's no such thing as a free lunch in this world. Not even breakfast.
Sweetheart, your father isn't selling houses; he's selling a lifestyle, a dream of a better life. This is what we often call the American Dream. And your father will help many people realize their dreams."
Seeing the stars in Athena's eyes, William White felt a surge of pride. Cough cough. He nearly cried from being moved by himself.
"Boss, I give up. So that's how business should be done."
"Of course, it's just some concrete and steel. If you can't breathe life into it, then it's just a jungle of cement. Look around. High-rise office buildings, boutique clothing stores, cuisine from around the world. You can think of all the entertainment activities -- did you know, Jason, there's even an indoor golf course and shooting range? You don't even need to leave this community for anything."
Jason was taken aback. He realized he couldn't argue back. Personally, even putting aside friendships, he would be more than willing to buy a unit like that.
"Boss, there are some in Los Angeles, right?"
"Of course, every major city in the U.S. will have similar projects soon."
The group chatted openly, with no taboo topics. William White had yet to notice that the project managers from Morgan Stanley and Goldman Sachs were now eyeing him with red-hot enthusiasm.
What the hell? When has America ever been short on wealthy people? This project at White Plaza seemed quite promising.
Wait a minute, didn't this guy just say he really didn't want to sell? If that was the case, he was definitely betting on a rise in American real estate.
William White was not just spouting off. As long as he sold forty percent of the properties, he would basically break even. In the long haul, he could sit back and wait for prices to increase quietly.
If it weren't for that obnoxious property tax, he wouldn't even bother selling a single unit. This wave of real estate boom was set to last until 2007.
Even when they later encountered the subprime mortgage crisis, the prices of good properties didn't drop much. The cheaper ones, however, saw a tragic decline. It made no sense at all.
...
"Is business really that good?" Bush Sr. was rubbing his temples. Seriously, can you leave some space for others? If everything so profitable, then how can others still survive?
"Son, if I'm not mistaken, he's selling apartments. Does that mean housing prices in Houston are now higher than in Los Angeles?"
"Who knows? He calls himself a dreamer, not a real estate developer. The real estate circle has gone mad; they want to hang his picture on the wall and worship it."
"Well, William White, sigh, his luck is definitely extraordinary. Next, Houston will work hard to attract people to buy houses, with tax breaks and loans all around."
Bush Jr. was also stunned. He originally thought William White was just good at bluffing; after a while, his high-end apartments might not remain popular.
The fact was, among America's high-income crowd, not buying real estate was simply foolish. Your loan interest could offset your income tax. That was practically a ten percent discount on buying a house.
In the U.S., you could get away with just a ten percent down payment. That meant you essentially didn't need to pay anything to have a home. If you still didn't buy, wouldn't that be idiotic?
This bubble sparked by Americans could be traced back to 1992, which was a significant starting point. On that day, real estate became a pillar industry.
When would this big bubble pop?
The answer is: it never would. If such a day truly came, a third world war might be just around the corner. Americans were desperately exporting U.S. dollars; how could other countries cope? Other than investing in fixed assets, there seemed to be no other projects out there.
*****
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