Yes I think it is concerning. It means we are selling ourselves out to foreign investors. We fought wars for freedom and unfortunately we now have such lax rules that anyone with a bit of cash can come and purchase some Australian soil. What was the point in millions dying at war if we just end up selling it to the highest bidder. I might have done well from all this but generations to come will now have the pleasure of being indebted for life to pay off a little piece of soil or never own anything wondering whether they will have anything left in retirement. I no longer think we are a great country but one that sold itself to the highest bidder. Australia the great prostitute.
2. Many investors using SMSF cash to buy property without a loan
Freedom? We are a monarchy, subjects of a queen and all her illegitimate derelict descendants.We fought wars for freedom
The point your lifestyle and the resources and control that made it possible.What was the point in millions dying at war if we just end up selling it to the highest bidder. Australia the great prostitute.
For a lot of people with SMSF who want to diversify into property, structuring the fund and getting a loan is still too much of a hassle, so they buy cash.
If this trend continues, it may mean that, contrary to widespread opinion, there is a level of disconnect between house price and credit growth.
1. It's not as if the foreigner can roll the land up and take it away. .
Another angle about the benefits of foreign investors.
They normally pay cash or use overseas loans so their over heads are a lot less than ours. This allows to them to charge less rent making renting more affordable. You have a win for the aussie seller, a win for the aussie renter and a win for the govt through higher taxes on foreign investors.
First homebuyers made up 18.1 per cent of loans granted in February compared to 20.5 per cent in January, and down from a record high of 28.5 per cent in May 2009.
What if they buy the exploration rights and mineral rights? The land is taken away!.
That's exactly what Chinese company Shenhua has done in my area. They have bought the exploration rights and mineral rights for about 6 times what the land is worth. [irrigated farm land is worth $10,000 per hectare, dryland farmland is worth $6,000 per hectare, grazing land is worth $3,000 per hectare]. They have bought out the farmers for 2 to 3 times what the land is worth, and they dig it up and export the coal to China.
Around here the coal is the best quality coking coal worth $200 per tonne. [About to go up to $300 per tonne]. Minimum seams of 2 meters depth, but up to 15 metres. Lets use the minumum of 2 metres depth? There is 10,000 square metres in a hectare. Times 2 metres. Equals 20,000 square metres. At 1500 kg per c/m that's 30,000 tonnes per hectare.
30,000 times $200 equals $6 million per hectare.
We really are the stupid country, born dumb, but just born lucky. Why wouldn't Australia just keep this as an asset? It doesn't have to be dug up now, and if left as is would produce food for ever more.
The broke state and federal governments needs cash now and can only see 12 months ahead!.