Tough New Laws on Foreign Owners

Good points Wealth, better go get my FR outta the driveway!

I have had my rant on anther thread on this issue. Time for everyone to start really watching this (if they haven't already been).

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The only problem is if you actually want to live in one of these areas as an Aussie. Bully for you. I personally would like to live where I live but wont have much chance of even renting here soon. Guess it is my bad luck for being a citizen of this country. Thanks Kaptain KRUDD.

 He should give other political leaders tips on how to sell the shirt off his back, it's made in China anyway.

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Gah, I'm just having a bad money day! Today in the FR there was an article about people in China buying apts. There were approx 12,000 buyers for 100 odd apts. Makes 100 people at a Sat open look tame! At least if you are competing here it is only with 5 people maybe 10 not 12,000!

Gotta put it all in perspective, very easy to take the emotional road when looking at prices in the suburb you live in!

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I couldn't agree more with this statement. Having come from Singapore myself this is a very real thing I could testify to. This is why I feel that an average outer suburban house on a family-sized block in an area with amenities and infrastructure could hit the million-dollar mark without much issue. Friends and family coming from Singapore would be astounded with a standard $400K home, which would probably fetch more than a few million in Singapore.

Also, I saw red when reading the Herald Sun's version of the article on this issue. For them to label Asians as 'raiders' and foreign investors as 'cheats' is absolutely uncalled for. It gives us a bad name because some locals would automatically assume all of us to be the same, even if we're PRs and they are TRs.

Furthermore, without turning this into an even more complex thread, I am embarrassed to even be associated with these TRs and I do not agree with their mannerisms or the way in which they conduct themselves in public. It is enough to know from this that not all 'Asians' are going to be alike. Some of us are hard-working, struggling PRs under the same govt as everyone else, paying their dues and taxes and trying to get ahead.

Very interesting situation and once again not thought out well from the beginning from the Rudd leadership.

The only main difference between Asia and Australia is population and demand of land respectively.

Australian population is 22 million and China is 1.3 Billion therefore the percentage of Asians that can afford to invest outside Asia and into a safe haven would amount to more than the total population of Australia.

Take 5% of the population of China at 1.3 Billion is 65 million people wanting to protect their money in an unstable world financial crisis.

Another perspective.

https://www.propertyinvesting.com/forums/property-investing/general-property/4331893

Here are the earlier discussions from another thread.

I think that unless KRudd reverts back to the existing policies we as property investors just need to be aware that there is more competition and that this will sort of help us after we buy (depending on area) and will hinder us when we buy. Just need to keep buying, the more investment properties we have, the less anyone else can have!

It means a lot more people will try and hang on to the family home (if this policy continues) to give to children and grandchildren to ensure they have a house in the family.

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The other thing on the news is that in victoria that $100 million of land is tied up in victoria alone in forieng investors.
Outrageous.

But let’s have a look at this. They were stating that properties at about 4.5 million and up to about 10 million were being bought.
Do the math. You are looking at about 25 investors from over seas. For what it is worth I am caucasion and also a realestate agents rep. It is amazing the !4 that comes out on the media.

Btw feel free to contact me there are some great deals at a new gated community called lynbrook.
I also have an investment property or three that I own in the new inverloch resort development that when completed with be guaranteed 6% net profits.

Let me know if you are interested.

The other thing as well is that too many people don’t have financial intelligence. And this is the fault of the education system. It needs to be taught from the kindergarden or primary school age.

I don't think anyone realised that a flood of people would come to stash their cash here. I think KRudd has even been taken by surprise.

Anyone wanna put a bet on whether this policy is his downfall in the next election? Most Aussies are pretty emotional when it comes to land, house, affordability.

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I get the feeling it will all blow over and Rudd will be spared from the damage. There isn't any info that I know of that would describe what sort of properties the foreign investors are actually buying. If it's primarily expensive properties above $2 million or so, then there's plenty of demand here even to take that up. There will be no downwards price movement and things may continue as normal.

Some folk out there are seriously loaded. For those who know where Donvale, Victoria is, my parents' friend's daughter just bought her SECOND house there, and she's only 25.

If however,overseas investment is primarily the thing that's holding up the lower segment of the market, then I'd be looking for a drop to occur. However I think this is an unlikely scenario…overseas investors would put their money in a blue ribbon suburb, or at least in the $700K-1mil range, not some first home buyer shack.

Nobody here is likely to complain I guess, because they are not the ones affected by the rules. But when this fails to stabilise prices, or if it does cause prices to crash (terribly unlikely), then Rudd will cop the krudd.