So you honestly think this will not have any impact at all ?
The main reason it won't have any impact is because foreign investors make up only about 2% of the market. Of that tiny proportion of the market, how many would be buying in order to flip/sell for a quick profit? Even fewer. Most foreign investors are probably of the 'buy and hold' variety, or are buying as a currency hedge or hedge against strife in their own country. Very few of the 2% would be planning to sell anyway. The number of people impacted by this change are tiny... a small subset of the already small subset of 2% of foreign investors.
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I guess you would think the same thing if -ve gearing was removed from today onwards... after all, those who already bought before today are fine.
You guess that only because you don't have a handle on the numbers. You don't realise that 63% of all property investors are negatively geared, and you didn't realise that foreign investors make up only about 2% of the housing market.
Just take a look at what he has buried deep in the 2012 Australian federal budget:
“The government will remove the 50% capital gains tax (CGT) discount for non-residents on capital gains accrued after 7.30 pm (AEST) on 8 May 2012. The CGT discount will remain available for capital gains accrued prior to this time where non-residents choose to obtain a market valuation of assets as at 8 May 2012.”
This statement will have great impact on the amount of property bought (and held) by Australian expatriates and other tax non- residents.
The 50% CGT discount has previously been available where individuals have held assets for longer than 12 months. The government now intends to withdraw this discount for non-residents, and honour the discount in relation to any existing accrued capital gains ONLY if the non-resident obtained a market valuation for the asset as at May 8, 2012.
We join those few yet to pick up on this change to inform any expatriates and offshore investors with investment properties here in Australia that they need to obtain a market valuation as soon as possible. Failure to do so could be extremely expensive.
And thanks for the heads up, Wayne – we got heaps of notice on this one. The practicality is that many expatriates and offshore investors may (will more likely) not hear about this change until too late.
You guys look like you will sacrifice almost anything to achieve a token $1.5 billion surplus in 2012-13.
The latest research from Colliers found that foreign capital investment made up 60% of all investments in Australia's commercial property markets in the first quarter of this year. There was about $2.2 billion worth of foreign investment in Australian non-residential property in the first quarter, well up from $341 million in the same quarter last year.
When it comes to residential property across Queensland, overseas buyers purchased about $400 million last financial year. Most buyers came from China (20%); then followed by South Africa (12%); United Kingdom (10%) and New Zealand (9%). Close to half (47%) the property bought by foreign buyers in Queensland is on the Gold Coast, followed by Brisbane with a 22% market share.
Hmmm, Wayne... just what the Gold Coast needs hey, another good kick in the teeth.
Right on. This is the attitude. If the Chinese want to cash up, they can.
Perhaps this is the opportunity for us budding investors. We can buy off the Asians and rent back to other Asians. Then sell back to them when prices go to the moon!
Prices may only get to low Earth orbit in the medium term, but over the longer term definitely we're going to see a median price in the millions here in Aus, guaranteed!
Prices may only get to low Earth orbit in the medium term, but over the longer term definitely we're going to see a median price in the millions here in Aus, guaranteed!
Yeah. In about 2050.
stinkbug omosessuale Frank Castle is a liar and a criminal. He will often deliberately take people out of context and use straw man arguments. Frank finally and unintentionally gives it up and admits he got where he is, primarily via dumb luck! See here Property will be 50-70% off by 2016.
Prices may only get to low Earth orbit in the medium term, but over the longer term definitely we're going to see a median price in the millions here in Aus, guaranteed!
Did you hear about North Korea's recent rocket launch?
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