Dose

Fairfax: The Yellow Peril is upon us

526 posts in this topic

Smoke and mirrors to distract from the fact that the current tax laws encourage over-investment in houses full stop.    And advantage investors over owner-occupiers.  Nuther full stop.    

 

The Canadians shut down their investment visa program and guess what?  Property continued to march up and up.   Then they dropped interest rates to "full-Blown Crisis" settings, guess what the locals are doing?  

 

The Yellow Peril theory (legit or agent scare tactic) will be tested with Joe now declaring all FIRB property recommendations will be accepted.  http://www.macrobusiness.com.au/2015/08/government-agrees-to-all-foreign-investment-recommendations/

Share this post


Link to post
Share on other sites

Price slashed on waterfront mega-mansion Mandalay House

 

 

A FLOOD of Chinese money is breathing new life into Queensland’s premium property market as families set their sights on multimillion-dollar villas dotting island playgrounds up and down the Great Barrier Reef.

It comes as the owner of one of Australia’s most exclusive high-end mansions slashes its asking price by a cool $6 million to lure in potential buyers....

Share this post


Link to post
Share on other sites

Obviously very selective where they buy!

 

 

 

New research has cast doubt on claims that foreign investment is pushing up Australian house prices, indicating offshore Chinese purchases totalled just 2 per cent of all transactions in 2014....

... The research arch did not take into account the potential impact of illegal purchases by foreigners, which the Federal Government is presently investigating....

... in some locations, however, Chinese buyers are over-represented in terms of sales.

 
Sha Liu from the University of Sydney, currently writing a PhD about Chinese buyers and global real estate markets, said the percentage of Chinese buyers in certain developments can be “up to 90 per cent”.
 
This extreme is usually seen when the developer themselves is Chinese and the project is within a Chinese ethnic community area, such as Chatswood or Chinatown.
 
When a project is built by a Chinese developer, often up to 80 per cent of purchases can be from offshore buyers, she said. When it’s from a local developer this proportion was found to be much lower – up to 30 per cent....

 

 

Share this post


Link to post
Share on other sites

His final act as a treasurer?!

 

Joe Hockey orders five more illegal FIRB forced property sales

 

 

Breaches of Australia’s foreign property investment laws has prompted Treasurer Joe Hockey to announce further forced sales of properties purchased by overseas buyers.

The Treasurer said 500 FIRB investigations are underway into more than $1 billion worth of residential real estate.

Tax commissioner Chris Jordan, left, with Mr Hockey at a press conference announcing the investigations said the properties to be sold are in Labrador on the Gold Coast, Ardross in Perth, Sydney’s Elizabeth Bay, Underdale in Adelaide and the Brisbane suburb of Stretton.

They were acquired unlawfully by foreign nationals from Singapore, Indonesia, the UK and China.

They voluntarily came forward under the amnesty announced in May.

The highest purchase price was $8.1 million, understood to be a penthouse in Elizabeth Bay.

The cheapest was a $265,000 property.

They have 12 months to sell the properties under the amnesty that ends of November, Joe Hockey said.

Share this post


Link to post
Share on other sites

I guess the cost of full fee payment for a Uni course represents a drop in the ocean!

 

STUDENTS IN $5 MILLION PADS: The probe on foreign home owners is now a billion-dollar project

 

 

 

...“We are seeing examples of very young people, who are here on student visas, who have not lodged a tax return, who are buying $5 million properties,” he said.

“There are spin offs, including checking where the income has come from, from undeclared work or the proceeds of crime,” he said.

“We know there are billions of dollars of sales revenue that are not being booked in Australia… we don’t have a lot of information about their cost structure.”...

Share this post


Link to post
Share on other sites

I came home on Friday afternoon and in my totally unimpressive cross street in my totally unimpressive suburb I have a Chinese guy keeping barely steady on a bicycle circling through the footpaths as he is trying to focus on holding his smartphone level. He got a continuous shot of the street from both sides. My thoughts were that he was getting footage for an overseas buyer.

Share this post


Link to post
Share on other sites

I spoke to someone I know who lives in one of the "leafy" suburbs of Melbourne. Said five houses in their street have been bought this year by Chinese. My guess is $1.5M is at the low end of living in that street.

 

Have no idea if they have PR/citizenship but suspect some of them may not.

Share this post


Link to post
Share on other sites

That looks like a demolition job, so is that how they get around buying "existing"?

 

Because of the small size of the block sold (see here), it looks like a sub-divided block. I presume the new dwelling can be sold to foreigners.

Share this post


Link to post
Share on other sites

Four Corners next Monday is about 'Inside the Chinese property boom, the buyers and developers changing the Australian landscape'

 

Good to know that the locals are being prized out by dirty money being laundered here!

Share this post


Link to post
Share on other sites

For those who don't know Sydney, Mosman is a premiere, blue-ribbon harbour front suburb.

 

Well-heeled buyers keen on a Mosman dream home push up prices this spring

 

 

...Monika Tu of Black Diamondz Property Concierge says homes priced from $5 million to $10 million have been easy to sell this year, with those over $10 million spending more time on the market.

 
Tu, who has just returned from China where she attended a roadshow for luxury properties, says Mosman remains among the top three choices for cashed-up Chinese buyers....

Share this post


Link to post
Share on other sites

How the f*ck can agencies get away with advertising/selling existing houses to foreigners!? F*ck me.

 

Perhaps she organises house & business visa packages?  :rolleyes:

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!


Register a new account

Sign in

Already have an account? Sign in here.


Sign In Now