Australia the new Switzerland ?

[joeExpat]

Interesting article
http://www.zerohedge.com/news/2013-04-17/australia-new-switzerland

I can see where they´re coming from, after 9 years living in Switzerland things have changed dramatically while I´ve been here:
- Bank privacy out the window, names being handed over to foreign governments (particularly US, whose citizens are no longer welcome to open Swiss accounts). Massive capital outflows as a result.
- Investment bank incompetence, resulting in near collapse of the biggest banks
- Peg to the upside on the Euro (with luck I transferred a lot of Swiss Francs into Euros just before the 2011 peg, some at near parity). The Franc can only weaken against the Euro from here.
- Loss of international competitiveness (something hurting Australia also)

No doubt money flows from former safe havens into Australia instead will help support the dollar and the inflated property prices there. Things can change quickly though.

 

[one world]

Some interesting remarks here,

These days, it seems that plenty of grubby money has left Switzerland in favour of Singapore.

Yes, clean Singapore. A country where you can be hung for carrying a handful of marijuana.

But if you are a Burmese drug lord, then your money is welcome.

 

[Angel]

A nice read to start the day! And adding on the currency exchange direct with China, things are looking pretty good in the Land Down Under. Or have I missed something?

 

[virgo]

Swissapore

Some interesting remarks here,

These days, it seems that plenty of grubby money has left Switzerland in favour of Singapore.

Yes, clean Singapore. A country where you can be hung for carrying a handful of marijuana.

But if you are a Burmese drug lord, then your money is welcome.

One of my friends say they have now come up with a 2-generation home loan in Singapore....that's how expensive it is now

Thank God my children have CHOICE here in Oz

 

[Ausprop]

One of my friends say they have now come up with a 2-generation home loan in Singapore....that's how expensive it is now

not much of a stretch from a IO loan with long expiry. 2 generation is a bit ridiculous as inflation will deflate the loan to nothing before it makes it to the 2nd holder. Coul dbe different if there was partial capitalisation of the interest? now that would be a great product

 

[virgo]

2nd generation loans

Hiya

I left Singapore 10 years ago; in all my time there, i have never heard of IO loans all property loans are P+ I...also your loan term is restricted to a maximum of 60 years - existing age IE you are expected to prove you must be able to pay by the time you are 60 years old....

 

[marks]

But you could have a HDB (public- housing which is everywhere) or condos with 3 generations living together. Mum+Dad in one room, Kids in another and grand-parents in a 3rd. 2 generations is not an un-usual circumstance.

 

[BV]

No doubt money flows from former safe havens into Australia instead will help support the dollar and the inflated property prices there.

Hey Joe how much overinflated do you think property prices are?
How much do you pay for a 2 bedroom flat in Geneva these days?

 

[joeExpat]

Hey Joe how much overinflated do you think property prices are?

No idea by how much, but Australia is bloody expensive by international standards, more expensive than just about anywhere in Europe.

How much do you pay for a 2 bedroom flat in Geneva these days?

Don't know about Geneva, but I would say Sydney is nearly as high as Zürich within 30 mins of the city. e.g. 700K, views over the lake & 30 minutes from Zurich centre by train; http://www.homegate.ch/buy/104293375
Outside 30-45 minute commute Zürich probably cheaper (except direction Zug)

 

[BV]

Don't know about Geneva, but I would say Sydney is nearly as high as Zürich within 30 mins of the city. e.g. 700K, views over the lake & 30 minutes from Zurich centre by train; http://www.homegate.ch/buy/104293375
Outside 30-45 minute commute Zürich probably cheaper (except direction Zug)

There you go so Sydney is no more expensive than many other desirable places