and if credit is easily available, then disposable income rises, regardless if it's borrowed or not.
and that's 4000 posts
and that's 4000 posts
Is Australia Really That Different?
- Thread starter Wibbly Pig
- Start date
I second that, property ownership is an obsession in this country. Well, within the crowds I move around. I don't necessarily agree with it but I do acknowledge its presence and the impact it can have.
Coal..?? Hell yes. The Poms have coal allright. How much? Lets google it?
http://www.guardian.co.uk/environment/2008/mar/05/fossilfuels.mining
........"But the government is committed to support what is left of an industry that 100 years ago employed more than one million people and which dug 250m tonnes of coal a year. In the past seven years, it has subsidised coal by more than £200m, even though output has continued to fall.
In 1995, total UK coal production was 51.3m tonnes, but in 2004 this had dropped to just over 30m tonnes. In 2003, imports of coal outpaced UK production for the first time. In 2005, production was just 20m tonnes - down significantly on 2004"........
The one big problem, and it's a bit serious, is it's just about all gone. 20 million tonnes per year now, less than consumption, and they are importing coal. Same with north sea oil.
We are really the lucky country.
See ya's.
err... good for you. and for the person who chooses something different to you too..
Jaycee
Agree we all take a different path in life but the reality is we are only here for a short period. One day death visits us all. Accumulating assets so you can just pass them on or have more of them without enjoying life seems to go against what living is about.
If they enjoy sitting at home then that is great. If they would like to visit the sengali or india or Melbourne and they choose not to so they can buy another asset then that is what is boring. If they like being at home then I have nothing against that. Some people love it and make the most of it.
Agree we all take a different path in life but the reality is we are only here for a short period. One day death visits us all. Accumulating assets so you can just pass them on or have more of them without enjoying life seems to go against what living is about.
If they enjoy sitting at home then that is great. If they would like to visit the sengali or india or Melbourne and they choose not to so they can buy another asset then that is what is boring. If they like being at home then I have nothing against that. Some people love it and make the most of it.
One thing about these mainland chinese.
There are rumours (just rumours!) floating around that some are corrupt government officials using Australian property as a vehicle for money laundering, stashing ill gotten assets outside the reach of the Chinese government. That would somewhat explain why they don't even bother to get tenants.
As a chinese myself I would believe this in a heartbeat.
There are rumours (just rumours!) floating around that some are corrupt government officials using Australian property as a vehicle for money laundering, stashing ill gotten assets outside the reach of the Chinese government. That would somewhat explain why they don't even bother to get tenants.
As a chinese myself I would believe this in a heartbeat.
I thought everyone knew this already and no, it is not a rumour. Some are not corrupt government officials but also business people, high net wealth individuals etc...
You would find that most also pay cash upfront and don't bother with taking out a mortgage. It is true they don't bother getting tenants...they simply buy for land banking and what locals need to understand is the Chinese rationale. They rarely sell! Mainland Chinese people love asset accumulation and empire building - having more houses, more businesses, more cash, more anything is a sign of wealth and prosperity and they will pass everything to their kids. Stuff giving it to charity, haha. They place things like life experiences, spending time with friends very low on the pecking order. Hence, one more piece of land they buy, is one less piece of land anyone else can buy for a VERY long time.
Another thing that locals do not recognise is that for $X dollars, they can get so much more in Australia as compared to China. Whilst it may cost a typical Mainland Chinese well over $1mil AUD to buy a crappy apartment in Shanghai, for that amount, you can afford to buy so much more in Australia and it includes, wait for it..........land and a nice garden!
I have a family friend (mainlander) who bought a house in Camberwell recently for about $2.5mil (paid all of it in cash - well, cheque to be exact). He thought it was cheap for what you get and said he would probably have to pay over $10mil back in Beijing to get something like that, with so much land, so close to the city and a swimming pool. Hence, how can locals compete against these mainlanders who consider property cheap in Australia?
Oh, btw, I am Chinese myself.
Interesting PoV DeeHwa. Do you believe the recent rise in the AUD against the Yuan affects this at all or is it still a case of really good value for money?
As a broader response to the topic, I think Australia has been spared from the crashes seen elsewhere due to our banks not having any problem raising capital to lend (govt bank g'tee and debt issuance g'tee) and thus we have not had any problems funding the imho oversized mortgages. I mean banks are still lending 95%, goto america and good luck!
Regards,
David
As a broader response to the topic, I think Australia has been spared from the crashes seen elsewhere due to our banks not having any problem raising capital to lend (govt bank g'tee and debt issuance g'tee) and thus we have not had any problems funding the imho oversized mortgages. I mean banks are still lending 95%, goto america and good luck!
Regards,
David
I'm not Chinese (but I've got a good friend who is a mainlander), and I get the impression that:
An interesting (though off-topic) question is will China have its own fiscal crisis at some point? And what sort of a mess will that make of the world economy?
- Party officials have a reputation for being corrupt, and lining their pockets through bribes. I heard this from a translated conversation with a Beijing taxi driver, so I don't know have accurate it is. But it would mesh with the comments above.
- China's having a real property boom (or bubble).
- Lending is apparently very lax over there right now, in an attempt to keep the economy going. The comparison I heard was that it made recent US fiscal policy look stringent!
An interesting (though off-topic) question is will China have its own fiscal crisis at some point? And what sort of a mess will that make of the world economy?
mate - that's a Q for a whole new thread.
Thread title = Is Australia Really That Different?
Answer =
Answer =
....and the Chinese totally agree with that according to some members here...
Yeah I reckon different life experiences bring upon different outlooks & priorities and some are happy at home with their vege gardens ! or perhaps that's the sthn european ones
I personally do not think the recent rise in the AUD against the Yuan will affect the buying decision. Many mainlanders still treat or perceive their own markets, whether it be sharemarket or property market as a casino and so they need/want to diversity their assets to a safe haven (Australian property - whether that be residential or commercial).
What is important to understand is that many mainlanders cannot invest in their own country because people will be asking 'where did you get all that money from'? One way or another, they need to invest, bank their cash somewhere and I doubt externalities will affect this much.
Another interesting point is that the Chinese are buying houses in Melbourne under the mum's name, another house under their son's name, another under their daughter's name, another under the dogs name (only joking here, haha), and they are paying it all in cash...so no serviceability issue. There was a newspaper article recently about how this lady from China bought $20mil of property in Brighton (obviously land banking to the max) and her son goes to Wesley College. Although I don't know for sure, but I anticipate this is how she did it. I also doubt she will be putting tenants in there as well!
How does this relate to FIRB rules? Are they just being ignored? I thought the recent relaxations only applied to people who are legally here on temporary (non-tourist) visas?
i don't think so - purchasing property has to do with little johnny's free trade agreement.
I would agree that for me personally there are suburbs in Sydney which is seriously unaffordable for me. However it may be very affordable to other people.
There are also cars which seem seriously unaffordable for me but there are others who are able to buy them.
In your case if you are thinking of moving back to Australia, do not worry as there are plenty of suburbs which will be very affordable to you. Just don't keep wishing for prices to come down on a suburb which is already seriously unaffordable to you.
For example, if you were thinking of moving to Sydney you may not be able to afford a property in Mosman but you might be able to afford it in Blacktown or Seven Hills.
great post - buy where you can afford and it WILL be affordable.
people whinging that Toorak is overpriced need to re-adjust their sights a little.
Austalia is having it's biggest population boom now.
Property prices will rise.
To top up on a few NSW posts here, NSW is experiencing:
1. Population Boom
2. Development Shortage.
3. Housing Shortage.
4. Yet, consumer confidence.
5. Business Confidence.
6. And lower than expected Unemployment.
Wait until the Commodity Boom takes off next year.
it just gets better.Regards JO
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