FIRB Rule Changes - Huge Impact on OZ Property Prices?

Hi there,

I've only just heard about the FIRB (Foreign Investment Review Board) rule changes for overseas investors in Australia...apparently they are quite dramatic!

Some people are saying that these changes will have a huge impact on Australian property prices, with many investors (in particular from our neighbouring Asian countries) entering our market to purchase new AND old residential property.

Any thoughts on this?

Here's the website link, I've only had a cursory look at it at present...(so don't ask me what the changes are!).

http://www.firb.gov.au/content/default.asp

I must admit, I have seen a lot of Asian buyers at inner city opens recently.

And Melbourne CBD is full of overseas students these days.

These overseas buyers could blow the local FHB's and investors out of the water! :eek:

Is Kennethkohsg around, I wonder what he thinks of this?
 
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Yeah, I heard on the radio that some Melbourne real estate agents are planning trips to China to conduct roadshows to wealthy chinese investors about the benefits of investing in the Melbourne market..... Not good news for people who are not already home owners.
 
Yeah, I heard on the radio that some Melbourne real estate agents are planning trips to China to conduct roadshows to wealthy chinese investors about the benefits of investing in the Melbourne market..... Not good news for people who are not already home owners.

Scary stuff!

Like Gold Coast real estate agents marketing high rise apartments to interstate Aus. investors.
 
so instead of competing with 21 million australians, its going to be more like 2 billion others as well! what bubble , it will never burst, now!
i can see all the water front , and golf estates going first:D
 
Hi, I've checked the links.
The FIRB regulations haven't changed.
And indeed, how'd one know if the Asians attending opens and auctions are not Australian?

However, the transient population has a big impact on demand esp inner city dwellings. Aust & NZ cities are huge with them & they're not all students.

KY
 
Hi, I've checked the links.
The FIRB regulations haven't changed.
And indeed, how'd one know if the Asians attending opens and auctions are not Australian?

However, the transient population has a big impact on demand esp inner city dwellings. Aust & NZ cities are huge with them & they're not all students.

KY

The rules have changed and this is real. The agents have been talking about it as they are fielding many more inquiries from overseas. The same with the buyers agents.

Check out this from one of the buyers agents

http://www.jamesbuyeradvocates.com.au/marketnews.html?newsid=51
 
Fanatastic......when is the "yellow" and "brown" peril coming.....I can't wait....they will be doing me a huge favour!

On a more serious note...regardless of FIRB....the number of migrants from the sub-continent, Southeast Asia, and Greater China is increasing rapidly.

Contrary to belief...a lot of these guys are coming to Australia with large sums of cash as immigration laws here now require them to support themselves for at least 2 years before getting any benefits.

I was talking to recent Indian migrant....he came here with 500K. Both he and his wife were in IT but in India he was sub-dividing a selling land till the bottom fell out. When they got here they bought a newish house in Liverpool in Sydney outright.:D

I see this as positive.....this will help my portfolio...particularly the ones in Wyndham shire in Victoria.
 
In regards to Brisbane I can't see this inflating prices at all.. IMO Chinese are very enterprising and won't pay more than they have to, just to park their money in Aus. They'll be doing their DD just like everybody else.
 
I can't see this making much difference: those here on temporary (non-tourist) visas can now buy without getting FIRB clearance first, and the 50% limit on sales to overseas buyers has been removed. Re the latter I bought two Central Equity units here in Melbourne whilst living in the UK (and have lost money on both) but that was when the exchange rate and strong property market in the UK meant that CE's offerings were (in sterling) way cheaper than comparable London properties. I think they would be a much harder sell now.
 
Hi there,


Some people are saying that these changes will have a huge impact on Australian property prices, with many investors (in particular from our neighbouring Asian countries) entering our market to purchase new AND old residential property.

Any thoughts on this?

Yes, I think the impact will be very significant in the areas where there are well regarded schools and tertiary institutions. Overseas students live in these areas, and can stay anywhere up to 10 years while they finish their studies. (Depending on their course). The convenience of owning a property nearby will, I believe cross the minds of many of these students and their families.

Regards Jason.
 
In regards to Brisbane I can't see this inflating prices at all.. IMO Chinese are very enterprising and won't pay more than they have to, just to park their money in Aus. They'll be doing their DD just like everybody else.

The more mature Chinese who earn their own money will surely do their DD. Those rich 2nd gen kids buying with daddy's cash, I doubt it. They just follow where the rest of their community is and bid up those areas without even thinking there are better values for money elsewhere.
 
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