Foreign Buyers will increase
- Thread starter Paul@PFI
- Start date
http://www.firb.gov.au/content/faq.asp
Based on this link and some of the answer provided.
It is clear that foreigner must purchase AU property for PPOR purposes only, so, in order for this to happen, firstly, our education system / migration must improve before our property can attract foreign buyers?
It's called the Foreign INVESTMENT Review Board for a reason mate.
So, based on the statement of the fall in dollar will lead to increase foreign buyer is not valid in this case, that was my point
But if there are no new legible foreigners buyer coming into the country, either via education sector or migration, how does a slight fall in the dollar going to attract new buyers?
As my link have clearly suggested, foreigners are able to purchase AU stock for the intended purpose of PPOR.
They're not coming into the country. That's why its called the FOREIGN Investment Review Board.
Incorrect. FIRB prohibit existing property purchases. New builds are fine. They can be rented or used by their kids studying etc....
Thanks for the clarification.
Do you really believe that a slight fall in our dollar will have a significant increase in our property market?
I believe the only way to have a significant increase in foreign buyers is when all sectors move together (foreign exchange, education market and migration levels)
This is the point that I was trying to express earlier
Properties become cheaper to purchase, but I recently read an article saying that many foreigners still take out local finance, in which case servicing the mortgage (or any shortfall after rental income) will be more difficult if they don't earn income locally. Furthermore, if prices have fallen 10% (due to the exchange rate) and there is an expectation the dollar will fall further (as is the case now), then why wouldn't they wait to buy?
Foreign buying is being dragged into the political sphere which may also result in rules changing or better enforcement/policing of those existing, which could dampen foreign demand.
I'm not convinced foreign demand is set to increase.
This is an interesting one. I agree that theoritically it should lead to an increase in demand given that prices have fallen for foreigners.
Not sure how it plays out on the ground.
Lots of foreigners do source finance locally, so the lower dollar will indeed impact servicing and yields.
Expectations of the dollar continuing to fall may impact purchasing though. If they ever plan on repatriating their gains, they may incur a forex loss.
Not sure how it plays out on the ground.
Lots of foreigners do source finance locally, so the lower dollar will indeed impact servicing and yields.
Expectations of the dollar continuing to fall may impact purchasing though. If they ever plan on repatriating their gains, they may incur a forex loss.
Its now publicised - the FIRB don't prohibit/ enforce anything.
The FIRB rules have so many holes in it - its not funny. There are structures that can beat the FIRB rules and the good accountants and brokers know this (and the real estate agents).
How many fines has the FIRB issued?
Cheers, Ivan
So a drop in speeding fines says something about the lack of enforcement?
FIRB are insanely strict. Duty offices are trained to sniff out dodgy purchases and refer them.
Unless the structures you're talking about are simply borrowing funds from offshore to invest in property? Thats not FIRB related at all. Nothing stopping a resident pooling family funds and purchasing a property. As long as any profit pays GST and 10% tax its all legal.
Try not to confuse the two. Its embarrassing. The FAQ on the FIRB website is generally a good start to understand the scope of the law.
Yep, I suggest staying away from the market.
Not necessarily. You have to look at the source of funds as well. A small but growing amount of funds to purchase property are from overseas sources.
e.g. family earning in USD in the tax free gulf states etc...
Yes, you will need to be a resident here and all that as outlined by the FIRB and other rules, but that does not mean you cant get $ from elsewhere.
The education market and immigration policies are already in favour of foreign investors, compared to most other English-speaking countries.
A fall of the AUD to 80c will see tremendous interest from very rich Chinese people - and that's what all my very rich Chinese friends tell me.
What might be a stupid question but can you be a foreigner in Oz to buy?
At what stage do you become a non foreigner - perm residency?
In Mindarie the demographic is more than 60% non Australian (all UK and South Africans). Some may or may not have residency. We will be selling our 4 apartments as brand new.
Can the 'local' non residents buy via FIRB or am I totally confused
At what stage do you become a non foreigner - perm residency?
In Mindarie the demographic is more than 60% non Australian (all UK and South Africans). Some may or may not have residency. We will be selling our 4 apartments as brand new.
Can the 'local' non residents buy via FIRB or am I totally confused
FIRB not doing its job:
http://www.brokernews.com.au/news/b...ccused-of-failing-to-do-their-job-192076.aspx
http://www.brokernews.com.au/news/b...ccused-of-failing-to-do-their-job-192076.aspx
most foreign buyers buy brand new hence in melbourne home packages and apartments. more moving to land home packages
it favours developers as well (ones doing sub-divisions or 3 townhouses or multi-occupancy) as they can sell these to Overseas buyers.
there are also ones who buy 2nd hand which require FIRB approval. most do get the approval but some who are so rich just buy anyway and then pay the fine i believe 100K or above something.
anyway - foreign buyers like chinese are specific to suburbs or demographics. I highly doubt any of them would buy in say frankston or doveton but rather they target suburbs which has good access to schools and food eateries.
Popular havens in melbourne is doncaster, balwyn, brighton, kew, hawthorn, glen waverley etc. i went to an auction in south melbourne last week basically 3 mainlanders going at each other (recognized from their accents) not sure if they have residency or not but eventually one wore the others out.
it favours developers as well (ones doing sub-divisions or 3 townhouses or multi-occupancy) as they can sell these to Overseas buyers.
there are also ones who buy 2nd hand which require FIRB approval. most do get the approval but some who are so rich just buy anyway and then pay the fine i believe 100K or above something.
anyway - foreign buyers like chinese are specific to suburbs or demographics. I highly doubt any of them would buy in say frankston or doveton but rather they target suburbs which has good access to schools and food eateries.
Popular havens in melbourne is doncaster, balwyn, brighton, kew, hawthorn, glen waverley etc. i went to an auction in south melbourne last week basically 3 mainlanders going at each other (recognized from their accents) not sure if they have residency or not but eventually one wore the others out.
