I invested multiple properties in China before I immigrated to Australia two years ago. It's stunning that the government is encouraging property speculation in such a astonishing level. 20% deposit, refinance, negative gears, SMSF, FHBG, even non-resident buyers can get some allowance from the government.
Currently apartments/units price in Sydney are almost the same as they are in Shanghai, China.But the house price here is much lower than they are in Shanghai. In Shanghai you have to shell out $7Million for a detached house(750sqm land size) 10km away from CBD, but in Sydney you only need to pay $2M.
Currently in Shanghai every household can only buy 2 properties at most by law. Many people are seeking to buy investment properties overseas. Sydney is a hot destination for them.
Shanghai is among many cities in China with such curbs on local property investment.
Considering the huge demands from China, the price of properties in Sydney will double in 5 years.
I invested multiple properties in China before I immigrated to Australia two years ago. It's stunning that the government is encouraging property speculation in such a astonishing level. 20% deposit, refinance, negative gears, SMSF, FHBG, even non-resident buyers can get some allowance from the government.
Currently apartments/units price in Sydney are almost the same as they are in Shanghai, China.But the house price here is much lower than they are in Shanghai. In Shanghai you have to shell out $7Million for a detached house(750sqm land size) 10km away from CBD, but in Sydney you only need to pay $2M.
Currently in Shanghai every household can only buy 2 properties at most by law. Many people are seeking to buy investment properties overseas. Sydney is a hot destination for them.
Shanghai is among many cities in China with such curbs on local property investment.
Considering the huge demands from China, the price of properties in Sydney will double in 5 years.
Do you have a link to any charts confirming detached homes in Shanghai have a median price of $7M USD?
Any expressed market opinion is my own and is not to be taken as financial advice
If this did occur, and it was driven by wealthy offshore Chinese buyers, then I don't think prices at that level would be sustainable - it would be too much too fast, and would have to subsequently correct fairly savagely I would think.
Having said that, as a Sydney property owner with a house on about 700m2 of land within 10km's of the CBD (and north side at that), if prices doubled, I would probably sell and move elsewhere (maybe north coast somewhere, or Brisbane/SEQ somewhere), as with that big a wind-fall gain I could bring my retirement plans forward by doing this. Only issue with this would be a bit of disruption for my kids (ie having to move to a new area, schools etc), which my current long term plans try to avoid.
For Aussie property bears, "denial", is not just a long river in North Africa.....
So why didn't all Chinese investors come over buying into Sydney? Hongkong has a higher property price to income ratio since 90s, did they come over to buy Sydney property and made its price doubled?
The Chinese/Shanghainese fairy tale doesn't work. Chinese property investor would buy into western part of China to boost local real estate market, easier than going down under, at least they speak the same language.
Chinese property investor would buy into western part of China to boost local real estate market, easier than going down under, at least they speak the same language.
Obviously you have not been to Sydney, they would speak the same language. Wherever the Chinese are, more will come there and drive the house prices up. If you look at the top performing Sydney suburbs, they are majority Chinese.......Eastwood, Epping, Hurstville all up over 30% YoY.
Spoke to a Gen Y friend this weekend and in the two weeks since last speaking to her, she bought an investment property.
I asked why the rush. She said there was no rush, but there was no point waiting for the market to drop – and even if it did it “would only be like 5%. Property never goes down”.
So I joked and asked when the party at her new house would be. She laughed and said “No way. When I get the keys I’m renting it out the next day.”
Apparently she’d kept an eye on the area and noticed the council rezoning for high density.
Her ambition is for the place to be rezoned so she can “make $200,000 overnight.”
And you know what? She’ll probably be right.
Guys and girls, this is Australia. We do not produce. We do not innovate. We buy and sell houses. We are impulses that seek economic rent.
I used to believe Gen Y had woken up. No longer will I be so naive.
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