The Chinese money suspicion is an absolute fact. As an anecdote, my cousin-in-law's off-shore family has bought at least a dozen multi-million dollar homes that I know of that they may have visited once. At least they pay for the up-keep though as many do not. The same day you posted about the Venice house I read this article about a Chinese couple that bought 2 houses for $10 million in 2010, have never even visited and they are just sitting rotting. Apparently about 15% of condos are sitting empty as well. And then there is the seperate issue of people buying newly renovated properties for $6 mill and demolishing them. That is my Uncle's old house and is beautiful as is.
Kind of baffling, isn't it? Makes you wonder just how much money they have to throw away. Whether they get to write off the depreciation on a home for letting it crumble into the dirt. Friend of mine lives up by the Hollywood sign. His is the white one on the right. In 2012 Ashton Kutcher moved in and knocked over whatever was there and build a pleasure palace. In 2014 he moved out. In 2015, the new owner tore it down and built something bigger. Think he was a producer on Hurt Locker.