How is this allowed?

[C-mac]

Saw this article this morning:

http://m.news.domain.com.au/domain/...ls-for-965000-at-auction-20150523-gh7lv9.html

Whilst I have to play devils advocate and not assume to know all the facts, the article mentions that the winning bidder was a Chinese man in China via a buyer's agent on the ground at the auction.

Unless he has Australian citizenship isn't this an illegal sale?? It is clearly not a brand new dwelling, but (very!) Established stock. I find it unlikely that he does have citizenship. If he did, wouldn't he actually want to be here for the $1million auction himself?

Keen to understand what procedures are put in place in buyers agent scenarios like this one to validate authenticity of citizenship status for these kinds of purchasers.

Like I said, I don't have all the facts and am very much speculating - I know that - but I just find it unlikely he is a local citizen and curious to know what checks are being done, if any. If he isn't a citizen, is the only way he can possibly buy this one, illegal? I.e. buying in some relative or friends name who does carry local citizenship.

 

[Ace in the Hole]

How could you prevent them bidding, especially when using a buyers agent?
Hasn't settled yet, that's where the investigations and filtering should be done.
And if they get knocked back and unable to settle, they should cover all costs and losses.

 

[WattleIdo]

Wouldn't you think that a BA would check this out before proceeding?

 

[Terry_w]

Saw this article this morning:

http://m.news.domain.com.au/domain/...ls-for-965000-at-auction-20150523-gh7lv9.html

Whilst I have to play devils advocate and not assume to know all the facts, the article mentions that the winning bidder was a Chinese man in China via a buyer's agent on the ground at the auction.

Unless he has Australian citizenship isn't this an illegal sale?? It is clearly not a brand new dwelling, but (very!) Established stock. I find it unlikely that he does have citizenship. If he did, wouldn't he actually want to be here for the $1million auction himself?

Keen to understand what procedures are put in place in buyers agent scenarios like this one to validate authenticity of citizenship status for these kinds of purchasers.

Like I said, I don't have all the facts and am very much speculating - I know that - but I just find it unlikely he is a local citizen and curious to know what checks are being done, if any. If he isn't a citizen, is the only way he can possibly buy this one, illegal? I.e. buying in some relative or friends name who does carry local citizenship.

He probably was a permanent resident or citizen.

 

[spludgey]

Can they create a company in Australia and then use that to purchase the property?

 

[windyzz]

Probably Aus Resident living/working in China ?

 

[sanj]

Saw this article this morning:

http://m.news.domain.com.au/domain/...ls-for-965000-at-auction-20150523-gh7lv9.html

Whilst I have to play devils advocate and not assume to know all the facts, the article mentions that the winning bidder was a Chinese man in China via a buyer's agent on the ground at the auction.

Unless he has Australian citizenship isn't this an illegal sale?? It is clearly not a brand new dwelling, but (very!) Established stock. I find it unlikely that he does have citizenship. If he did, wouldn't he actually want to be here for the $1million auction himself?

Keen to understand what procedures are put in place in buyers agent scenarios like this one to validate authenticity of citizenship status for these kinds of purchasers.

Like I said, I don't have all the facts and am very much speculating - I know that - but I just find it unlikely he is a local citizen and curious to know what checks are being done, if any. If he isn't a citizen, is the only way he can possibly buy this one, illegal? I.e. buying in some relative or friends name who does carry local citizenship.

All it said was the winning buyer was in China, it did not mention his/her nationality or race. I think you're being a bit overly dramatic.

Incidentally, if this sort of price isn't a sign of a bubble I don't know what is. Outstandingly stupid purchase, congrats to the buyer

 

[Phiber]

Citizenship is not a requirement, permanent residency is.

 

[Xenia IM]

All it said was the winning buyer was in China, it did not mention his/her nationality or race. I think you're being a bit overly dramatic.

Incidentally, if this sort of price isn't a sign of a bubble I don't know what is. Outstandingly stupid purchase, congrats to the buyer

I agree sanj

 

[Terry_w]

Can they create a company in Australia and then use that to purchase the property?

This would be captured by the foreign investments and acquisitions act, unless the foreigner owned 12% or less (or maybe 25%, can't remember)

 

[bobby85]

Probably Aus Resident living/working in China ?

Agreed.
I know of many people who are australian citizens and have moved to China/HK for work permanently. They still have a passport.

This is just the media drumming up more hype again.

 

[DaveM]

Surely the media gives a fair and balanced view of the transaction.

Oh wait no, they got news and editorial mixed up years ago.

The yellow peril is upon us!!!!!!!!!! House in Eastwood purchased by asian person!!!!!!!!!!

 

[Scott No Mates]

The next bit of scare mongering by the media will be "Mt Druitt house purchased by person with a job".

 

[lazibones]

C-mac why would he want to be here, if he has a buyers agent or a telephone? It could be a lot of travelling back and forth, if he went from china to Melbourne for every property he was interested in.

 

[C-mac]

Yeah my thoughts exactly. Like I said, I don't have all the facts, so who knows the status of this buyer. The piece just aroused my attention, really. I agree with the others though, $950K for 38 square meters, though the location is great; is pretty steep.

Then again, that Darling Park development sold out yesterday, and 1-bed, 0-parking, F**kload-strata-fees, of 50sqm internally sold for $800K+.

Again, superb position but I'm stumped as to how ANY local PPOR dweller, OR local investor, would really justify that. As a PPOR, when you add in those strata fees, to be living as a single you'd need to be earning a very comfortable salary! Even a DINK couple sharing that 1-bed would be pouring a lot of their monthly salaries into that thing! As for investors, sure it's a great spot but upon launch (And pending the coming dump of loads of new apartments into Sydney in the next 18 months...) could you really command more than say $600pw for 1-beds in this building? Even assuming $650pw, plus strata, it just doesn't stack up ??????

Oh well, I guess that's what happens to people who buy near the end of a cap city's boom period?