You should lay off the xenophobic Murdoch press? Chinese foreign investment in Australia is spurring on construction and increasing the supply of housing, which in the long run will make buying/renting more affordable. All the while the construction industry is gearing up and employing the people to build these apartments.
Which way is the economy heading?
- Thread starter TMNT
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You should lay off the xenophobic Murdoch press? Chinese foreign investment in Australia is spurring on construction and increasing the supply of housing, which in the long run will make buying/renting more affordable. All the while the construction industry is gearing up and employing the people to build these apartments.
Nah; I was being sarcastic.
There is always a lot of comment that the Chinese are taking over the Country, buying up all our real estate, etc...
I hope so.
It was on the radio at work....Smooth FM, actually.
If you knew anything about the law, you'll know that the cashed up Chinese can only buy off the plan anyway, which is probably not what your upcoming generation will aspire to buy.
The regulation is there but it is one of the most overlooked pieces of regulation and one of the loosest too.
"Industry professionals have told the House of Representatives economics committee that foreign investors ? in the unlikely event that they were prosecuted ? viewed the $85,000 fine as the ?cost of doing of business?. Foreign investment laws also allow for forcing foreign investors that breach the law to sell off their *illegally acquired houses, but it is not clear whether this power has been used extensively or not." - The Australian June 11 2014
There is also a loophole where foreign investors can buy established housing if they are studying here or they plan to demolish it to build two or more units. 'Studying' can mean signing up for a 6 month make up course worth a few thousand and 'planning' is nothing but them stating an intention at the time of signing the contract.
yes true at take it to the next level when they apply for PR.
One of my businesses partners is in this situation.
He owns property not bought 'off the plan' and is not PR nor a citizen. From memory the only concession is that he doesn't get the 'first home buyers grant' on the first lot of property he bought
well you have to be fair on one hand mate.
All the dodays you bought came from china. They have collected that money, and now want to invest it in some real assets.
Chinese love land associated products, always have always will.
So Australia traded x amount of cheap t-shirts/suits/all other stuff manufactured, for a nice little piece of Australian land.
Fair deal
Hmmmm, interesting points. I wonder if this is one of those situations where the law/regulations is made ineffective by a complete lack of enforcement. I mean with the numbers of foreign buyers coming into the Australian housing market, surely a half way house (you can buy some things but not others) is gonna be next to impossible to police?
Slightly adrift of the main market, but worth mentioning:
We got recently got an email from our PM in Kalgoorlie; we have a 2x1 rental over there, currently rented at $310 p/w.
She informs us that the current tenants are not renewing their lease in Oct, and due to the current state of the rental market over there, we can only expect about $260p/w after Oct.
Now; that's what I call the mining boom is over, ladies and gents!!
We got recently got an email from our PM in Kalgoorlie; we have a 2x1 rental over there, currently rented at $310 p/w.
She informs us that the current tenants are not renewing their lease in Oct, and due to the current state of the rental market over there, we can only expect about $260p/w after Oct.
Now; that's what I call the mining boom is over, ladies and gents!!
yes was reading in the paper rents and house prices in Karratha have gone down aswell as the mining industry moves from construction phase (stupidly ridiculous houses prices) to Production phase (ridiculous price but less then before). As this happens to other projects in the next five years it will be noticed all across WA.
Slightly adrift of the main market, but worth mentioning:
We got recently got an email from our PM in Kalgoorlie; we have a 2x1 rental over there, currently rented at $310 p/w.
She informs us that the current tenants are not renewing their lease in Oct, and due to the current state of the rental market over there, we can only expect about $260p/w after Oct.
Now; that's what I call the mining boom is over, ladies and gents!!
And/or did the mines there switch to using FIFO?
Don't know what percentage that is/was, but the PM said last year when I was over there that the boom had gone off the boil, which would mean a lot of jobs cut...the latest info would suggest it's continuing.
thank god I didnt try and cash in on the mining and buy in a mining dependant area!!!
edit: oops, I forgot I have one thats been vacant for 2 months ;(
Slightly adrift of the main market, but worth mentioning:
We got recently got an email from our PM in Kalgoorlie; we have a 2x1 rental over there, currently rented at $310 p/w.
She informs us that the current tenants are not renewing their lease in Oct, and due to the current state of the rental market over there, we can only expect about $260p/w after Oct.
Now; that's what I call the mining boom is over, ladies and gents!!
Good thing I didn't follow Helen Collier-Kogtevs advice and move away from humble Sydney properties to high rent return mining towns a few years ago. I may have regretting doing that. This is one reason my risk profile is on the moderate side.
Slightly adrift of the main market, but worth mentioning:
We got recently got an email from our PM in Kalgoorlie; we have a 2x1 rental over there, currently rented at $310 p/w.
She informs us that the current tenants are not renewing their lease in Oct, and due to the current state of the rental market over there, we can only expect about $260p/w after Oct.
Now; that's what I call the mining boom is over, ladies and gents!!
i think you are quite 'lucky'.
Check out Fleetwood corporation. They provide accommodation for the mining sites. There profit has been decimated.
We are slowly reverting back to the mean for these outlining sites.
There are blue chip sustainable stocks and then there are cyclical stocks on the stock market.
There are blue chip sustainable residential properties and then there are residential properties heavily influenced by the cyclical nature of their sub markets.
Key is to understand which is cyclical which is blue chip.
Money to be made from both, but only one is buy and hold
I guess her angle just didn't suit me. I am a slow and steady wins the race kind of guy and wasn't keen to invest in something that is strange to me and reliant on only a couple of industries for the big returns.
What works for one person may not work for the next.
No contradiction, surely? You make the massive profits once your mine goes into production, at the same time reducing your workforce to 25% of what it was during the construction phase (according to another contributor here). The vision, I suspect, is of a mine worked entirely by robots and operated from an air-conditioned office in Perth.
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