Category

chinese investment

Dec 15
0

Will we see Apartment prices drop in Sydney and Melbourne?

By | best investment, Building, chinese investment, foreign investment, Uncategorized | No Comments

The Sydney and Melbourne unit markets in particular have been buoyed by Chinese investors, but six months on from a bank clampdown on foreign lending, will we see apartment prices drop in Sydney and Melbourne?

The word has been that apartment prices in Sydney and Melbourne may drop because of over-supply but the real danger may be the thousands of Chinese property investors who bought apartments in Australia are now scrambling to save their investments. Already, a number of apartments bought off-the-plan by Chinese investors have failed to settle due to the buyers being unable to secure finance for settlement.

(Please contact us at info@limepropertysolutions.com.au for further information or the chance to discuss this and other issues in the comfort of your own home.

In these cases, the developer is entitles to keep the 10% deposit paid at exchange of contract and on-sell the apartment. In many cases it makes sense to reduce the price of the apartment for a quick sale. With possibly hundreds of new apartments being on-sold ‘below original cost’, this would soon affect the whole city-wide apartment market. Read more: http://www.abc.net.au/news/2016-11-28/chinese-property-investors-worried-after-big-banks-change-rules/8062530  Related Story: Tough new loan laws see Chinese investors opting for private lenders

In mid-year year, the major lenders stopped lending to offshore investors in a bid to reduce  risk. Lenders were worried by some applications with fraudulent proof of income, and wanted to rein in lending to avoid being too reliant on Chinese borrowers. These changes are now having a major impact on the property market, particularly in the foreign investor’s favourite locations in Sydney and Melbourne property investment hotspots. For the estimated 50,000 Chinese buyers involved there has been crushing disappointment. It is estimated that up to 30,000 investors are affected.

As well as our Australian lenders, China’s banks have cracked down on money heading abroad, so investors have been left trying to borrow from other Asian banks. With up to 30,000 units unable to settle, it is difficult to see why this will not affect the major city apartment markets. We are more than likely see Apartment prices drop in Sydney and Melbourne over the next couple of years.

If you want to know more about safe growth investment over the next few years contact: info@limepropertysolutions.com.au.

Oct 17
0

Brisbane suburbs where house prices have doubled

By | best investment, chinese investment, Investment, Properties, property cycle, Property Research | No Comments

Brisbane suburbs where house prices have doubled
It’s interesting to read about the number of Brisbane suburbs where house prices have doubled over the last 10 years.
(Please contact us at info@limepropertysolutions.com.au for further information or the chance to discuss this and other issues in the comfort of your own home)
The news always seems to be centred on the Sydney market with the occasional comment on what is happening in Melbourne. We read about property investors (and maybe a few home owners) almost buying out a brand new release in Macquarie Park in Sydney at the weekend but one story you will find very difficult to find is about Sydney suburbs that have doubled in value over the last 10 years – there are none. It’s a slightly different story in Melbourne where we do have a few suburbs that have doubled in value in the last ten years but we read and hear so little about Brisbane.

Well, according to Domain Group Data, here are the suburbs in Brisbane that have more or less doubled in value over the last 10 years:-

• South Brisbane*
• Newmarket*
• Wishart* (*have more than doubled in value, according to Domain Group data)\
• Macgregor
• Cannon Hill
• Northgate
• Sunnybank
Apparently the growth is not all about people paying more to get into a suburb. Simon Pressley said, “While someone in South Brisbane may have bought for $500,000 and now their home is worth $1 million, they might have spent $800,000 on the home.”
Sunnybank has attracted a very large number of residents from a Chinese background and like many of the well-populated Chinese Australian areas in Sydney, prices have just grown and grown.
Probably not surprisingly, seven of the top ten of the biggest growth suburbs are located within five-kilometres from the CBD.
According to Andrew Wilson from Domain, most of the growth had occurred in the past three years. Similar to the claims being made about the growth in Melbourne and Sydney, low interest rates over the past few years are being attributed to the cause of much of this growth.
It is interesting to note that BIS Shrapnel’s annual housing report released last week is still predicting house price growth to be stronger in Brisbane than in any other capital city over the next few years, so look out for more additions to the list of Brisbane suburbs where house prices have doubled over the last 10 years. Read more here: https://goo.gl/4ChtqG
If you want to know more growth suburbs in Brisbane and how they may affect your property investment choices contact us at info@limepropertysolutions.com.au.

May 31
0

Truth about Chinese investment property buyers

By | best investment, chinese investment, foreign investment, Market, Property Research, Real Estate | No Comments

Truth about Chinese investment property buyers

 
It’s time someone helped to get rid of the myths behind the Chinese buying ALL our investment property and have a look at the truth about Chinese investment property buyers.

The idea of Australian residential housing being bought up by foreign owners, particularly the Chinese, just does not stack up. Sure, we go to auctions and it would appear that most of the people attending the auction are Asian but this surly should be of no surprise as, according to our last census in 2011, 2.4 million Australians are of Asian background! That’s 12 % of our population, more than double the number of indigenous Australians.

12% of all Australians are of Asian background. The Asian community are prolific property investors

12% of all Australians are of Asian background. The Asian community are prolific property investors

The vast majority of ‘Chinese” buyers in our market are Asian Australians. It’s always good to have a scapegoat, it seems it makes us feel better when things don’t go our way and after years of price growth, people priced out of the market are using overseas-based Chinese buyers as the scapegoats responsible for our housing affordability.

The media doesn’t help this perception.  “Chinese” buyers over other ethnic groups such as Indian, French or Canadian have fuelled public concern over whether these buyers are inching the Australian dream further out of reach. The generalisation of the term “Chinese buyers”, to include anyone of Asian appearance or with an Asian surname, has placed local and international buyers in the same basket, and exaggerated the extent of Chinese interest.

So what are the major myths about Chinese buyers pushing prices up by buying investment property? What is the truth about Chinese investment property buyers?

Here are six of the most common misconceptions:

1. Overseas Chinese investors are pricing Australian first home buyers out of the market

Not True – Offshore Chinese investors and first home buyers generally don’t compete for the same properties.

2. Chinese buyers with endless financial means are bringing suitcases full of money

Not True – The majority of average buyers are looking at properties priced between $500,000 to $800,000.

3. Chinese buyers tend to overpay on properties

Not True –   Chinese buyers like to negotiate, and some agents would even say they’re savvy buyers. Sure, they’ll pay a premium if they think it’s worth it, or it has unique features. But so would local buyers.

4. Chinese buyers aren’t concerned about dwelling size

Not True – Chinese buyers are not looking for micro apartments and in a survey they said they do not want to buy a property investment under 50 square metres although they may start off with a smaller investment property because it’s more affordable.

5. Chinese investors leave apartments and houses empty because they’re not chasing rental return.

Not true. Again, the majority surveyed wanted yields of around 5% if possible.

6. Most Chinese buyers shun properties with a street number 4, and the right number play a big part in their decision making

It’s true that the number eight is linked to good fortune and the number 4 is seen as unlucky but the sale price will more likely depend on the property, particularly for younger Chinese buyers.

For full details on this story go to: http://goo.gl/AarvP7

May 09
0

Chinese property investors – Brisbane more attractive option.

By | best investment, chinese investment, Economy, finance, foreign investment, Market, Property Research | No Comments

Chinese property investors may see Brisbane as a more attractive option.

A recent media article is suggesting that new Chinese property investors may see Brisbane as a more attractive option.

brisbane

Brisbane more appealing to Chinese property investors

Chinese buyers have been at their most active in the Melbourne apartment market over the last few years but it now appears that there are a number of issues that will slow down Chinese investment to such an extent that inner-city apartment projects will be shelved and sales may fall through.

Generally throughout Australia, various issues have been arising which have made it much more difficult for Chinese buyers. Foreign Investment Review Board rules have stated for some time that non-residents can purchase only new units and townhouses but until recently, the rule was not well policed. Even so, the Chinese have been prolific buyers in Melbourne’s off-the-plan apartment market. Just last week, Westpac announced it would stop writing mortgages to non-residents, while other major banks have reduced loan-to-value ratios and tightened eligibility criteria.

As Australian banks have been making it tougher for foreign buyers, the Chinese government is reining in money flowing through underground banks. The Chinese are only permitted to send $US50, 000 ($68,000) limit per person each year outside the country and with the crackdown on underground banks buying property investment in Australia is more difficult.

Now, on top of all this, the Victorian government introduced a foreign buyer stamp duty surcharge and then more than doubled it to 7 per cent in just a year!

All of the above has led to fears that Melbourne’s already over-supplied inner-city apartment market will see new projects shelved and existing off-plan sales may fall through.

The 7 per cent in just a year tax on foreign property investment is sending out the message that Victoria does not want any more Chinese investment. In comparing buying an apartment in Brisbane versus Melbourne, the foreign property investor is now $40,000 worse off, diluting Melbourne’s competitiveness one agent has said.

Considering the relative price points, over-supply and general finished quality and size of units, these foreign investors are probably going to be much better off putting their money in Brisbane anyway in the medium term.

Click here for the full story: http://goo.gl/Ue2Rv7

Property Investment Advice Sydney | Property Investment Advice Melbourne | Property Investment Advice Brisbane | Property Investment Advice Perth | Buying Property with Self Managed Super Fund | SMSF Property Investment | Buying Property with SMSF | Buying Investment Property Melbourne | Buying Investment Property Brisbane | Buying Investment Property Sydney | Buying Investment Property Perth