it's the only unencumbered property i know of. oh sorry, i forgot - the government owns that as well! hence why it thinks it can shave off a share everytime you sell it! i guess we really are slaves to the welfare state... :lol:
YKY that's 7 posts in a row and I'm none the wiser!? Maybe next time you should try rolling all of that into one post.
Sorry Yippe, I meant "good to see you're back" not "good to see your back" :lol: Damn this internet Textglish as a first language.
Rothbard - why ignore my question? Are most of your buyers overseas Chinese? They seem to be the only ones at the moment overpaying for units in the CBD.
Would not the price of a house increase in a high inflation environment................or would the inevitable raising of interest rates (that would follow a rise in inflation) cause property prices to tumble?
hotel 46 is right. Inflation is not some kind of even-handed phenomenon. We've already witness property inflation, stock market inflation, food price inflation, etc. But not all is equal. If wages increase by 50%, but food prices increase by 200%, they are both 'inflated' but not equally, and in such an environment it might be hard to pay for food on a basic wage for example. So house prices may 'inflate', but not necessarily at the same rate of other things. The value of something is only relative to what you can exchange for it, or how much you can produce with it. As for leverage, that's been done to death. There's a thread about 'inflating debts away' somewhere. Wishful thinking IMO.
It is highly likely that if we enter a period of high inflation, it will be consumables that experience a massive price spike and assets that deflate. The exception to this will be gold and arable farm land. So we'll experience a period of inflation and deflation concurrently. Well that's my theory anyway.
Sorry to make you feel left out, Byron...My last response was on the iPhone with a baby in the other and balancing a bottle with my chin in her mouth...i couldnt get more than two words out in my last post like that so I wasnt about to start a thesis on demographics... As for our buyer demographic, yes, about 60-70% of a developments sales are Chinese buyers. I tend to personally transact most business with Indians interestingly (80% of my personal sales) FIRB usually allows only 50% to be foreign investors but many are Australian Chinese so have residency or citizenship but the money is coming from China. Chinese buyers have become so prolific that HUNDREDS of Chinese real estate agencies have popped up recently who have ZERO experience and who dont list their own properties...but damn, do they sell!!! I worked for one of the biggest chinese agencies in Sydney for 3 months alongside 100 other sales consultants. These agents with no experience were each earning a minimum of $100,000pa (for the no-hopers) and $400,000 - $1,000,000 per year. By boss at this job is currently the highest paid real estate guy in Australia...but you would have never heard of him and he has only been in business for 6 years but has transacted over $1Billion in off the plan real estate deals since starting his company. You may ask why I left...I never attended a sales meeting as they were all in Mandarin. Virtually nothing was spent on marketing to Australian buyers and all their leads were essentially friends and family and their families and friends! If I could maintain my current sales rate that I do with my present company with that Chinese company I would be easily sitting on my first $2million income year this year... I had a young Chinese couple fly in last week and do a property tour of sydney for a week then fly back to China after buying the ones they wanted! In essence...Yes the Chinese are Sydneys biggest buyers for off the plan real estate.
^ I think it's because they need to get savings out of China, in any way possible. Because they're not safe at home. If they're buying debt-free, that's good because it adds stability to the market. But if they're just speculators looking for capital gains or wealth preservation, then it can be a very bad thing if the market falls/euphoria fades and they all try to exit at the same time. Very bad. Why don't they buy up big in Ireland, Spain, Greece or the USA instead? (there could be many reasons)
Probably because there are actual restrictions there designed to protect their citizens from being swamped by a Chinese invasion. :lol:
Seeing some of the dynamics in the background RE Aussies buying cheap US properties (you've probably seen a range of various marketing campaigns over the past couple of years) sometimes there is simply a case of having the right people in the right place at the right time. The whole system starts with a trickle before eventually turning into a river of capital flows. Basically the are a heap of regulatory hurdles and investor skepticism that needs to be overcome before any of these international property sales schemes fly. The Australia-US schemes took a fair while before any of my friends even started raising it as a viable opportunity rather than laughing it off. Now I know two people who have moved to the US for a few months purely to go around and buy up the cheap housing. The same barriers would happen in China-Aus sales pitch but I'm guessing the perceived robustness of the Aussie economy (due to our world's best Swan) plus the large resource investments still flowing through and other stories add to the ease with which the spruikers can spruik.
No offence intended at Rothbard and others who may make a living from selling to foreigners, but it amazes me how stupid some of the Chinese are. It's the same with the Japanese before them, and possibly Indians now. They fly into a country with loads of dosh, get shown a few specific properties by a few specific agents, buy the ones they like, then piss off back home hoping to make a motzah. It's like visiting a souvenir store in Surfer's Paradise and hoping to walk out with a genuine product without being ripped off. What ever happened to doing your own due diligence and getting to know a market well yourself? Dumb!
My parents fell for a scheme in Fiji sold to Aussies way back in the late 70's/early 80's. Great beach front subdivision property on an idyllic tropical island perfect for tourism etc etc for a pittance. Ended up losing all their dough.
Well... If your choice was between a) losing half your money, or b) losing all your money to a corrupt govt, what would you choose? But I agree with you anyway, it looks to be pretty much the same as the japanese.
