Very true as the velocity of money has slowed down due to the banks stricter lending criteria. Also could mean that the uber rich are flogging off their McMansions and downsizing thusly increasing the mean average.
Where on earth are the Chinese getting all this money from???
http://www.smh.com.au/business/prop...y-property-hotspot-demand-20140129-31m1b.html
Chinese buyers don't want your house, they want the land
Juwai’s Taylor says China's economic ascendancy has unleashed unprecedented purchasing power for its citizens, and is now washing up on the shores of Australia, the United States, Europe, South America, and Southeast Asia.
"The true power of the Chinese buyer is represented by more than 63 million people whose wealth and incomes provide them with the ability to purchase international property," says Taylor, who points out that 90 million Chinese search for property online every month. More than 60 per cent pay in cash.
Globally, Taylor says Chinese purchases of residential properties totalled at least $38 billion and possibly as much as $50 billion last year.
And just as they are moving out of tier one cities in China, overseas Chinese investors are now moving out of capital cities, like London, to Manchester and Birmingham.
In Australia, Taylor says, the Chinese are also buying in tier two cities - Gold Coast, Perth and Adelaide. And surprisingly, juwai.com is getting enquiries for properties in Wagga Wagga, in the south west of NSW.
"We didn't really understand why, until we found out that a Chinese company has made a big investment in Wagga." (The state-owned Wuai Group has partnered with Sydney-based company ACA Capital Investment to build a $400m trade centre in Wagga.)
The mainland Chinese passion for real estate remained unfulfilled in their home market until about 15 years ago, when private ownership was first permitted, according to Taylor. "They are going through their first property cycle. Property is like gold to them."
Also if we try and inflate away our housing debt, it just manifests itself as a reduction in pensioners savings buying power.
Which in turn results in a lower standard of living for them, which results in higher taxes to support higher pensions.
Isn't it great, smoke and mirrors, untill someone say's " hang on a minute".
Where on earth are the Chinese getting all this money from???
http://www.smh.com.au/business/prop...y-property-hotspot-demand-20140129-31m1b.html
An article in today's Business Spectator by Florence Chong may give you some answers to your question - extract below.
http://www.businessspectator.com.au...se-buyers-dont-want-your-house-they-want-land
"Overall credit has jumped from $9 trillion to $23 trillion since the Lehman crisis. "They have replicated the entire US commercial banking system in five years," she said."
Their grand master plan to take over the world maybe.
Hate the think what would happen if goes the same way as the USA but would be interesting seeing a whole suburb like Glen Waverly, Vic up for sale in one go as they sell assets to get cash.
All fun and games, or as it seems a wise old man said "sunshine and lollipops".
But the banks in Oz do not practice usury lending now do they? Can't imagine a whole suburb up for sale .. no wait .. that would be Ipswich a couple of years ago !
Is this a statement based on facts or just an opinion?
If the housing debt is controlled by the banks and the banks are greedy then inflation will eventually rear it's head which means interest rates are rising which means pensioners savings will earn more interest? (very loose terms here) Vicious cycle really
Only in NSW
As Chinese investors are blamed for driving up Sydney house prices and accused of keeping first home buyers out of the property market, it has emerged that the government is giving them a helping hand.
…under the New Home Owner Scheme introduced in the 2012 state budget, buyers can own multiple homes in their country of origin and still apply for the grant for the purchase of Australian properties.
They don’t have to live in it. All they have to do is apply through the foreign investment review board to buy.
In fact, if an overseas buyer were to buy 20 off-the-plan apartments, they could apply for 20 $5000 grants, Treasurer Mike Baird’s office confirmed yesterday…
Only in NSW
As foreign investors are blamed for driving up Sydney house prices and accused of keeping first home buyers out of the property market, it has emerged that the government is giving them a helping hand.
…under the New Home Owner Scheme introduced in the 2012 state budget, buyers can own multiple homes in their country of origin and still apply for the grant for the purchase of Australian properties.
They don’t have to live in it. All they have to do is apply through the foreign investment review board to buy.
In fact, if an overseas buyer were to buy 20 off-the-plan apartments, they could apply for 20 $5000 grants, Treasurer Mike Baird’s office confirmed yesterday…
Original
Updated
I changed one single word in that article.
One word is all it takes to change the angle of the story and be more respectful of our fellow brothers and sisters.
Peace.
Only in NSW
As Chinese investors are blamed for driving up Sydney house prices and accused of keeping first home buyers out of the property market, it has emerged that the government is giving them a helping hand.
…under the New Home Owner Scheme introduced in the 2012 state budget, buyers can own multiple homes in their country of origin and still apply for the grant for the purchase of Australian properties.
They don’t have to live in it. All they have to do is apply through the foreign investment review board to buy.
In fact, if an overseas buyer were to buy 20 off-the-plan apartments, they could apply for 20 $5000 grants, Treasurer Mike Baird’s office confirmed yesterday…
Only a small point, I guess, but hundreds of thousands of people with savings accounts are not pensioners.Just an opinion, also interest rates rising only help pensioners who have savings.
Only a small point, I guess, but hundreds of thousands of people with savings accounts are not pensioners.
Self funded retirees just as one example. Many others who are, for example, saving for home deposit.
There are many more people with savings accounts than those with mortgages.
Much the same with any sort of physical construction stimulus.It appears all and sundry are pouring stimulus into the housing sector, to try and prevent a huge jump in unemployment.
It also has the side benefit of stimulating brickworks, cement works, earth moving, surveying, most trades also local council services, elect,water,sewage etc.
However it is a very short term hit, once the house is built it produces nothing, but carries a lot of debt.
The total amount of Chinese investment in property, including residential, increased just $93 million from the 2010-11 financial year to the $4.187 billion reported for 2011-12 by the FIRE.
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