International Chinese investor bought his 150th property today.

[forumite]

I am very worried by this article about the impending asset bubble in China:

http://www.theage.com.au/business/the-china-bubble-20100412-s34b.html

 

[ger]

I heard the minister for housing saying on TV a couple of weeks
ago that foreign investors can only buy 1 property. If they buy more
there are large fines and the houses will be repossessed.
I WOULD LIKE TO SEE THAT HAPPEN

 

[MTR]

Why scary?

As I have become older, I have started thinking more globally. To me it isn't "us" and "them". When I see a human being that has become successful enough to buy 150 properties, my first thought is "Well done!" My first thought is never "What is his nationality?".

It is not easy to achieve what he has done - good on him.

We all share this planet for just a few short years. Some of us will rent all our lives, some of us will buy only 1 home, some will buy a few more and some like this gentleman will buy a lot. We are all free to choose our course in this life.

If we (or our children) want to buy 150 homes, then go do it. Become the person you need to be to achieve that goal. To me it is small minded to think that we (or our children) will be 'priced out' of the market because someone else has a lot of property.

Hey Propertyunity
You must be reading my mind, I was thinking the same, then scrolled down and "Bob's your uncle, if we want to buy 150 homes, then go do it" absolutely. Think BIG, there is plenty for all.

MTR

 

[Graemsay]

I've got two questions about the foreigners who are allegedly buying up Australia:

1. Can they purchase multiple properties? The FIRB FAQ suggests that they can buy new builds or empty blocks as IPs. If they're limited to a single purchase then that would constrain their impact on the market.
2. What sort of numbers are we talking about? There are around 300,000 temporary residents in Australia, or 1.5% of the population. Not all of these will be in a position to buy (e.g. on a working holiday visa, many students, etc.). So is this a case of scapegoating foreign nationals for prices that are largely being driven up by the locals?

 

[monkey brother]

Election Year

It is interesting that no objection was heard in Oct 2008 when FIRB loosened the restrictions.

Now that the economy is heating up some forgetful aussies are using Chinese as scapegoats again. Could it be an election year effect or sentiments from some sore losers who don't know how to save money and build up wealth?

Let's wait and see how this Greece debt crisis and Goldman Sachs scandal go. If they were so bad that the world economy turned down again, we will probalby see some more interesting arguments and policies.

 

[redwing]

According to the guru's we should all be off buying property in the USofA or New Zealand anyhow....how about Portugal, Romania, Turkey, Brazil, Spain? Czech Republic appears to be stabilizing?

We are all part of the global village nowadays

Australia's Foreign Investment Policy

Plus 150 properties is a drop in the pond, when compared to the deals being done in boardrooms across the country

 

[Aaron Sice]

Don't foreigners in Bali/Indonesia have to have a contract with an Indonesian National as a nameholder (title holder) when purchasing property, or can you purchase in your own name or via another structure?

no, indonesia have changed / are changing the laws for foreign investment.

 

[mary&mat]

Hi Graemsay,

I'm confused too!

How can this person have bought 150 properties with the restrictions placed on overseas investors? Can someone please enlighten me?

Thanks

 

[paul2299]

How can this person have bought 150 properties with the restrictions placed on overseas investors? Can someone please enlighten me?

If there is a restriction I'd imagine there is likely some way around it using companies or trusts. If people are doing it to the tune of 150 properties I would imagine it is legal.

 

[redwing]

Hi Graemsay,

I'm confused too!

How can this person have bought 150 properties with the restrictions placed on overseas investors? Can someone please enlighten me?

Thanks

FIRB decreed a year ago that temporary residents would no longer need to notify it when they buy a residential property. Officially, they are off the radar

.

Find a news Link here

 

[Tony3008]

FIRB decreed a year ago that temporary residents would no longer need to notify it when they buy a residential property for their own use. Officially, they are off the radar.

[my insert]

... and if they want to buy an existing dwelling as an IP they can't, legally anyway. If they do and FIRB finds out they can be ordered to sell it. But, I wonder, would this ever happen or unofficially are TPTB very happy to be raking in the extra SD etc?

T.

 

[mary&mat]

Thanks Redwing & Tony3008,

So overseas investors can buy as many residential dwellings as they like as long as they're not IP's?

Does this mean all these (150) properties this person is said to have, sit vacant?

thanks again for clarifying this

 

[mary&mat]

Here's the link to API's explanation of foreign investors & part of the article (for those of you like me who hate clicking on links )

http://www.apimagazine.com.au/api-o...al-estate-in-australia-for-overseas-investors

Buying real estate in Australia (for overseas investors)
Posted on Tuesday, April 07 2009 at 7:37 AM

Foreigners seeking to buy residential real estate in Australia in many cases need to seek prior approval from the Foreign Investment Review Board (FIRB). However, there are still many opportunities for foreigners to acquire and develop real estate in Australia, both through certain exemptions from needing approval and through situations where approval is usually granted.

While the Australian Government recognises the strong benefits of foreign investment, particularly direct foreign investment, to Australia, its foreign investment policies are designed to help maintain stability in the Australian property market.

....not so confused now, more dumbfounded as to Rudd's intentions versus the outcome of these legislative changes....thoughts anyone?

 

[ger]

Hey Propertyunity
if we want to buy 150 homes, then go do it" absolutely. Think BIG, there is plenty for all.

MTR

Like to see any Australian go and do this in China
NO HOPE

 

[meconium]

Hopefully these International investors go easy on our renter kids in generations to come. It certainly won't be Aussies owning land the way things are going.

Such is life.

Nobody complains when we Aussies invest overseas. Now that the boot's on the other foot, we don't have to moral right to whine when foreigners bring their money here.

 

[terrence]

Just a cheapie at $712k. His 150th property in the suburb of Doncaster east alone. Who knows what he owns in other suburbs. Scary...

150 * 700k = 105,000,000

105 million dollars worth of ((I'm assuming) separately titled residential) property.

Well that's a lot of egg's in Yuan (I mean one) basket.

 

[BayView]

If someone (from China) is rich enough to buy 150 properties in the seemingly small period of time this guy has, why would he;
a) pick Australia
b) buy 150 individual properties.....and in Australia.

105 mill was quoted as a possible figure. let's say it was only 100 mill.

Who would be bothered to do all that buying if you have that much, or access to it?

And why wouldn't he buy in his own back yard? Surely he could whack it all into a half a dozen extremely large properties of some sort; apartment buildings, or larger commercial premises etc in a growth area in Chin-wa.

Sorry dudes; it's gotta be an urban myth.

 

[BayView]

Yes you know why those Chinese said it was cheap, cause land is scarce back home, people live in apartments.

Considering that China is an extremely large country, I'd say this would be due to there being over 1 billion people in the place.

Some people in this Country (and on this forum) would have us be doing the same.

 

[redwing]

This topic is gathering a lot of momentum of late, with a lot of finger pointing by some?

Governor Stevens said that if the purchase of property by foreigners who borrow abroad becomes “a large-scale phenomenon,” then raising interest rates in Australia wouldn’t “make any difference to them.”

It is going to be hard to work out how much it is raising the prices because it is not just how many foreigners are buying but also how many are bidding up the price. Foreigners are potentially bringing in a lot of cash on cheap credit from overseas. It appears as those the chinese have been particularly interested in Australian property. If you think about it the wealthiest 1% of the chinese population equals 11 million people – half our population. It only takes a very small percentage of that group to decide to park some of their investment in Australian property for it to start distorting the market.

Recent articles and reports by real estate agents suggest that foreign nationals are buying around 30% of the real estate that is up for sale. Even Blind Freddy can see they are a major factor in this bubble and they are making housing less affordable. Late last year The Age reported a buyer from mainland China had recently purchased 4 by $5 million dollar houses in Melbourne purely for investment purposes. Glen Stevens must be playing dumb for political reasons.

Heard a frelance auctioneer on the radio today, he confirmed that more than 50% of his auctions are purchased by overseas interests. The area he covers was most of the inner city and suburbs within 15km of the CBD. Prices for these ’boutique’ suburbs have now been pushed out of the reach of most normal aussies, forcing them further and further out.

Stop foreigners buying australian real estate. It makes houses more expensive and hurts the families on a smaller income. Person on $60,000 can not ever compete with wealthy millionair on price. The government for working people?

Forget affordable housing. The changes in Foreign ownership laws will make the concept a thing of the past for the majority of working Australians. An Australian citizen borrows at 6.55%. Foreign investor borrows at 2-3%. An Australian citizen pays tax on any capital appreciation. A foreign investor does not. This is just the tip of the iceberg. Give it another 12 months and then we’ll see a real affordability crisis.

Foreign investment makes up half or more of all purchases. This is a major impact that Rudd turns a blind eye too. He doesn’t care about the furure of our children, he only cares about an economy that is charging ahead. At the loacl Australians expenses (rising interest rates). Squeezing residents of Australia out of the property market. Already the Chinese dominate Sydney CBD and northern line suburbs. This is pushing resident Austraians out to cheaper areas.

 

[VYBerlinaV8]

Be interesting to see if this puts the brakes on it at all...

http://www.news.com.au/money/proper...-ownership-rules/story-e6frfmd0-1225857643432