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Chinese & Australia
Topic Started: 27 Oct 2014, 11:42 AM (2,510 Views)
Emmanuel
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There is a myth that Chinese are coming to Australia and buying our houses with money that the average guy cannot compete with.

So where do they get this money? Do they have sacks of AUD sitting around their houses? Do they have a printing press?

People are so naive and various sectors of the media are trying to frighten everyone.
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cokatoo56
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Emmanuel
27 Oct 2014, 11:42 AM
There is a myth that Chinese are coming to Australia and buying our houses with money that the average guy cannot compete with.

So where do they get this money? Do they have sacks of AUD sitting around their houses? Do they have a printing press?

People are so naive and various sectors of the media are trying to frighten everyone.
It's not just a myth IMO.
China has experienced an incredible economic boom in the past 20 over years. The MS media like to say there are over 1 million millionaires in China. Do you believe there are over 1 million geniuses in China who have built very successful companies like Baidu ?
I read 80% became rich with property speculation. In the big cities, property prices have reached 50 times the avg income (it's around 10 in Sydney). Property speculation has built incredible wealth in China. And it is money that was created by the banks from nothing. You can't lend money you don't have, but banks have that right. So yes they have a printing press, and quite a few chinese have sacks of RMB sitting around their houses.
Now Australia is hungry for money, and allows and encourages rich foreigners (mostly chinese) to "invest" in Australia. And at the same time these wealthy chinese want to send their money overseas to limit their risk exposure.
The average guy earns an average income from his hard work commuting daily to an office or from his own business. I don't believe it is this average guy who can offer $50K more than the highest bid for a $500k unit.
Near my place, there is a house that sold in 11/2011 for $1.2 million, it sold in 12/2013 for $3 million. It's not the avg guy who causes such property prices increases in 2 years time.
the newspaper was telling recently about a house in punchbowl (not the sexiest suburb in Sydney) that sold for $1.2 million, double the avg price. The article was then saying that the owner, after winning the auction, went to park his ferrari in front of his new house. There again, it's not the avg guy who can overbid so much and drive a ferrari.
The average guy just cannot compete with that funny money that pours in mostly from China. And that rigs the market. I don't see how property prices could grow at 10+ % per year with a majority of average guys competing with each other.
The Chinese are not to blame. If the system allows them to enrich so much so fast, well anyone would do the same. The government is to blame to encourage this scam. But banks have so much to gain in encouraging property development/speculation. And banks dictate the rules.
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Blondie girl
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What gets a lot of people angry is that oz has made it very easy for people from overseas to come & buy oz R/e... It's not just the Chinese..but they are predominantly highlighted in the media...

SO when the average Aussie learns that thir sllice of oz is being bought by people more richer ... & seem to have $ to throw around it does get people angry...especially when Chinese students are negotiating & buying props on behalf of their parents. It does pee some off

Oz popn growth is driven by record levels of immigration.. & people do argue that it's not natural.

I do think if there was a referendum on our immigration levels, there would be people saying "no more".

Some people are angry that real economic growth & productivity hasn't been tackled by the govt.
Newjerk? can you try harder than dig up another person's blog. My first promo was with Billabong and my name in English is modified with a T, am Perth born but also lived in Sydney to make my $$
It's Absolutely Fabulous if it includes brilliant locations, & high calibre tenants..what more does one want? Understand the power of the two "P"" or be financially challenged
Even better when there is family who are property mad and one is born in some entitlements.....Understand that beautiful women are the exhibitionists we crave attention, whilst hot blooded men are the voyeurs ... A stunning woman can command and takes pleasure in being noticed. Seems not too many understand what it means to hold and own props and get threatened by those who do.
Banks are considered to be law abiding and & rather boring places yeah not true . A bank balance sheet will show capital is dwarfed by their liabilities this means when a portions of loans is falling its problems for the bank.
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newjez
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Very interesting viewpoint. I have heard the argument made that Chinese money will flow to oz now they are not getting returns in China. True when Chinese returns were slowing. Still true now Chinese returns are falling?

http://www.telegraph.co.uk/finance/markets/questor/11187002/Stock-markets-threatened-by-collapse-in-Chinese-consumer-demand.html
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
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Guest
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Watch the pitchforks come out when the rba finally raises interest rates.
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Guest
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Just go to any Bunnings Warehouse on a Sunday morning.

You will have a smorgasboard of multi-cultural immigrants from Plumbing and Bathroom all the way thru to Home and Garden.

Our mass, open border immigration policy is flooding the country and it is really starting to show.

I actually knocked a middle aged Chinese woman down with my trolley (not intentional – she just got in the way not looking where she was going). My apologies were swift and sincere. She did not utter a single word – glared at me as if to turn me into stone and limped off not looking happy. I do not think she could speak a single word of English.

You would have to be a comatose, drunken Blind Freddy not to notice, or a RE speculator willfully turning a blind eye!
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Count du Monet
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You forget that at least until the present China has had a high rate of domestic inflation. Hence banking your money or buying government bonds was an even bigger waste of time than doing that here. Very often Chinese families engage in syndicate savings, so the money that comes here to buy an investment property represents a number of incomes pooled.
The next trick of our glorious banks will be to charge us a fee for using net bank!!!
You are no longer customer, you are property!!!

Don't be SAUCY with me Bernaisse
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newjez
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27 Oct 2014, 04:40 PM
Just go to any Bunnings Warehouse on a Sunday morning.

You will have a smorgasboard of multi-cultural immigrants from Plumbing and Bathroom all the way thru to Home and Garden.

Our mass, open border immigration policy is flooding the country and it is really starting to show.

I actually knocked a middle aged Chinese woman down with my trolley (not intentional – she just got in the way not looking where she was going). My apologies were swift and sincere. She did not utter a single word – glared at me as if to turn me into stone and limped off not looking happy. I do not think she could speak a single word of English.

You would have to be a comatose, drunken Blind Freddy not to notice, or a RE speculator willfully turning a blind eye!
Beware of lawyers bearing envelopes.
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
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Count du Monet
27 Oct 2014, 05:25 PM
Very often Chinese families engage in syndicate savings, so the money that comes here to buy an investment property represents a number of incomes pooled.
That's something that should have been obvious which I hadn't considered.

It would be great to know exactly who is buying what and how they're going about it, even just for sake of curiosity but it's never going to happen. The extent of their effect on the market is something to behold in some localised regions.
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cokatoo56
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27 Oct 2014, 04:40 PM
Just go to any Bunnings Warehouse on a Sunday morning.

You will have a smorgasboard of multi-cultural immigrants from Plumbing and Bathroom all the way thru to Home and Garden.

Our mass, open border immigration policy is flooding the country and it is really starting to show.

I actually knocked a middle aged Chinese woman down with my trolley (not intentional – she just got in the way not looking where she was going). My apologies were swift and sincere. She did not utter a single word – glared at me as if to turn me into stone and limped off not looking happy. I do not think she could speak a single word of English.

You would have to be a comatose, drunken Blind Freddy not to notice, or a RE speculator willfully turning a blind eye!
This kind of behaviour is shocking and not understandable for most people from "civilized" countries. But for China people, it is just normal behaviour.
I once saw a young pretty chinese girl in the bus, she was cleaning her nose with her fingers and was cleaning her ears with cotton buds which she was throwing on the floor after using them. For most chinese, it's not shocking.
There was this middle aged chinese woman in watson's bay in Sydney. There was a wedding being celebrated in the park, beside the jetty. That chinese woman was calling her friends to come and see the bride and groom. She was pushing away the wedding guests to be as close as possible from the couple and take photos of them (without asking permission I suppose).
My wife (malaysian) and I were laughing seeing that woman's behaviour, but i think it would not shock any chinese.
The department of immigration have an immigration guide where they explain that in Australia, people like to say "hello" when they meet someone, "good bye" when they leave, and "i'm sorry" if they hit someone. That paragraph sounds funny for most people, but i think it is a new concept for many chinese.
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