Lambethlad Posted October 15, 2014 Share Posted October 15, 2014 National Australia Bank's latest residential property report has revealed that one in four new Melbourne homes are being bought by foreign investors, far outstripping the rest of Australia. Chinese investors are ignoring the laws limiting foreign investment in property. Despite the massive disregard of the laws no one is ever prosecuted. Personally I don't have a problem with it. I say if they have the money let them buy what they want. Quote Link to comment Share on other sites More sharing options...
paul1977 Posted October 16, 2014 Share Posted October 16, 2014 National Australia Bank's latest residential property report has revealed that one in four new Melbourne homes are being bought by foreign investors, far outstripping the rest of Australia. Chinese investors are ignoring the laws limiting foreign investment in property. Despite the massive disregard of the laws no one is ever prosecuted. Personally I don't have a problem with it. I say if they have the money let them buy what they want. Their a big part of the problem why Australia's housing market is upto 50% overvalued. Quote Link to comment Share on other sites More sharing options...
Xenon4017 Posted October 16, 2014 Share Posted October 16, 2014 Their a big part of the problem why Australia's housing market is upto 50% overvalued. Isn't that a good reason to let them carry on buying? What I'm worried about is if they start buying up huge tracts of dry land in the outback for a song. Then wait 20 years and find they're literally sat on a goldmine. Quote Link to comment Share on other sites More sharing options...
paul1977 Posted October 16, 2014 Share Posted October 16, 2014 Isn't that a good reason to let them carry on buying? What I'm worried about is if they start buying up huge tracts of dry land in the outback for a song. Then wait 20 years and find they're literally sat on a goldmine.Not if you want your kids to be living with you all their life waiting for you to die. Quote Link to comment Share on other sites More sharing options...
VERYSTORMY Posted October 16, 2014 Share Posted October 16, 2014 Isn't that a good reason to let them carry on buying? What I'm worried about is if they start buying up huge tracts of dry land in the outback for a song. Then wait 20 years and find they're literally sat on a goldmine. It doesn't work like that. Most of the outback is crown and can only be leased. When you lease it you need to do so for very particular reasons such as exploring for a gold mine. But, once you are granted a lease you have to then spend a minimum amount per block - the blocks are fairly small and the spend is fairly large. Hence one of the issues that exists at the moment within the mining industry. Lots of small companies are losing their projects as they can't raise funds to continue the minimum exploration spend. Quote Link to comment Share on other sites More sharing options...
Guest Posted October 16, 2014 Share Posted October 16, 2014 Their a big part of the problem why Australia's housing market is upto 50% overvalued. Well rent and you are getting a bargain then. Quote Link to comment Share on other sites More sharing options...
Lambethlad Posted October 16, 2014 Author Share Posted October 16, 2014 Isn't that a good reason to let them carry on buying? What I'm worried about is if they start buying up huge tracts of dry land in the outback for a song. Then wait 20 years and find they're literally sat on a goldmine. Too late. They are already buying up vast rural properties. The Chinese are also acquiring a taste for dairy products. Last month a Chinese dairy company bought 3 dairy farms east of Melbourne for $13.5 million. Quote Link to comment Share on other sites More sharing options...
Guest The Pom Queen Posted October 16, 2014 Share Posted October 16, 2014 They are buying up property in Cairns as well. We also have the Fung family from Hong Kong who will be building us this beauty in Cairns Quote Link to comment Share on other sites More sharing options...
paul1977 Posted October 16, 2014 Share Posted October 16, 2014 Well rent and you are getting a bargain then. Nice attitude to have for future generations Quote Link to comment Share on other sites More sharing options...
Xenon4017 Posted October 16, 2014 Share Posted October 16, 2014 Not if you want your kids to be living with you all their life waiting for you to die. Well, if houses are still so expensive at that stage, by what parameter are you saying they're overvalued now? To say something is overvalued implies that it's current cost is above its 'natural worth'. Most people accept that houses, more than most other assets, tend to swing back and forth around a long-term average. Are we at the top of a cycle? If so, let the Chinese buy at the top and either sell at the bottom, or retain their asset. It's up to them. My point about buying in the outback was a bit simplistic. To put more meat on the bones, I'm more concerned about foreign investors buying up land where it is cheap today, holding on to it for a decade or two in anticipation of it being worth more. Not really due to mining rights, but due to usage for agriculture, or for land closer to current conurbations, due to rezoning. To be fair, some Aussies make shed loads of money like this too. I'm not too bothered about Chinese who buy a shoe box in Circular Quay. Quote Link to comment Share on other sites More sharing options...
Xenon4017 Posted October 16, 2014 Share Posted October 16, 2014 >>Well rent and you are getting a bargain then. Nice attitude to have for future generations If I said a car rental company was offering to rent a Rolls Royce for 10$ per day, wouldn't that be a bargain? Against the cost of buying the RR. That's what the poster meant; that rents aren't keeping pace with the capital cost. So if you rent you're getting more for your money, so to speak. Quote Link to comment Share on other sites More sharing options...
flag of convenience Posted October 16, 2014 Share Posted October 16, 2014 National Australia Bank's latest residential property report has revealed that one in four new Melbourne homes are being bought by foreign investors, far outstripping the rest of Australia. Chinese investors are ignoring the laws limiting foreign investment in property. Despite the massive disregard of the laws no one is ever prosecuted. Personally I don't have a problem with it. I say if they have the money let them buy what they want. I wonder why you think Australia should allow unregulated sale of its housing market? One of the biggest betrayals to my mind this government is no better than the last in this. End result will be overseas landlords lording it over the domestic market in time and selling at inflated prices to one another. Already many buy as speculators not to rent and leave empty. Enables them to sell in pristine condition. The original idea was only new builds would be allowed. Like so much wrong in this country the original idea was corrupted and no one in position, or few care. Quote Link to comment Share on other sites More sharing options...
flag of convenience Posted October 16, 2014 Share Posted October 16, 2014 Their a big part of the problem why Australia's housing market is upto 50% overvalued. Dirty money will pay over the odds. Quote Link to comment Share on other sites More sharing options...
flag of convenience Posted October 16, 2014 Share Posted October 16, 2014 Isn't that a good reason to let them carry on buying? What I'm worried about is if they start buying up huge tracts of dry land in the outback for a song. Then wait 20 years and find they're literally sat on a goldmine. Not if you want to stop the housing Ponzi and allow housing to be part of the birth right of citizens. What earthly good is it having large areas of particular suburbs in the hand of non domiciled owners? Quote Link to comment Share on other sites More sharing options...
flag of convenience Posted October 16, 2014 Share Posted October 16, 2014 Well rent and you are getting a bargain then. Rents are never a bargain in Australia. Just at times cheaper due to over inflated housing that folk need to mortgage for life for. Quote Link to comment Share on other sites More sharing options...
flag of convenience Posted October 16, 2014 Share Posted October 16, 2014 >>Well rent and you are getting a bargain then. If I said a car rental company was offering to rent a Rolls Royce for 10$ per day, wouldn't that be a bargain? Against the cost of buying the RR. That's what the poster meant; that rents aren't keeping pace with the capital cost. So if you rent you're getting more for your money, so to speak. Only because of grossly inflated in value. Renters have few rights in Australia and usually limited tenure. Bad deals all round. Quote Link to comment Share on other sites More sharing options...
flag of convenience Posted October 16, 2014 Share Posted October 16, 2014 In fact hardly related only to Melbourne. Sydney has been long in their sights. Both cities now recognised as over priced even by overseas investors and sights have turned towards Brisbane. Even Perth is getting a look in at least in inner suburbs. Quote Link to comment Share on other sites More sharing options...
paul1977 Posted October 16, 2014 Share Posted October 16, 2014 >>Well rent and you are getting a bargain then. If I said a car rental company was offering to rent a Rolls Royce for 10$ per day, wouldn't that be a bargain? Against the cost of buying the RR. That's what the poster meant; that rents aren't keeping pace with the capital cost. So if you rent you're getting more for your money, so to speak. A house is completely different to a car, a house is your home . Quote Link to comment Share on other sites More sharing options...
Xenon4017 Posted October 16, 2014 Share Posted October 16, 2014 Not if you want to stop the housing Ponzi and allow housing to be part of the birth right of citizens. What earthly good is it having large areas of particular suburbs in the hand of non domiciled owners? A birth right to pay less for a house than a foreigner? Should we pay less for petrol too, as a right of birth? I know we're in Asia, but we don't have to adopt a "Farang" two-tier system. Quote Link to comment Share on other sites More sharing options...
Xenon4017 Posted October 16, 2014 Share Posted October 16, 2014 A house is completely different to a car, a house is your home . They're both assets. You can either purchase one outright and keep it forever, or rent it for the time that you need it. Whichever suits you best at the time. Or would you rather outlaw the possession of a house that you don't actually live in? Quote Link to comment Share on other sites More sharing options...
flag of convenience Posted October 16, 2014 Share Posted October 16, 2014 A birth right to pay less for a house than a foreigner? Should we pay less for petrol too, as a right of birth? I know we're in Asia, but we don't have to adopt a "Farang" two-tier system. What are you referring to. Why should foreigners, not migrants, be unpoliced and illegally purchase already built property? Few countries sell out to such an extent as present day Australia. Even Canada has gone back. At least 10% are probably more is added to Sydney house prices as a result. You are right Malaysia, Thailand et al all have controls. India darn near impossible. Quote Link to comment Share on other sites More sharing options...
flag of convenience Posted October 16, 2014 Share Posted October 16, 2014 They're both assets. You can either purchase one outright and keep it forever, or rent it for the time that you need it. Whichever suits you best at the time. Or would you rather outlaw the possession of a house that you don't actually live in? One being a rather essential asset that should be assured to be kept within reach of the population. Quote Link to comment Share on other sites More sharing options...
Xenon4017 Posted October 16, 2014 Share Posted October 16, 2014 What are you referring to. Why should foreigners, not migrants, be unpoliced and illegally purchase already built property? Few countries sell out to such an extent as present day Australia. Even Canada has gone back. At least 10% are probably more is added to Sydney house prices as a result. But what difference does it make if the demand comes from international rather than interstate buyers? Or if cashed up city slickers buy up lovely cottages in the Blue Mountains as holiday homes, pricing out the locals. Quote Link to comment Share on other sites More sharing options...
Xenon4017 Posted October 16, 2014 Share Posted October 16, 2014 One being a rather essential asset that should be assured to be kept within reach of the population. Ah, but which one is which? I know a few people who don't own a house, but I don't know many that don't own a car. Quote Link to comment Share on other sites More sharing options...
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