Real Estate MT: Prices, Capital Gains Tax (CGT), Negative Gearing, Foreign Investment, 'Bubbles'...

[Ratts of Tobruk]

I don't think it was a Rudd change, as I've heard complaints about Chinese buyers from before Labor won govt. But I guess they could have been generic racist complaints and something did change to increase investment 9-fold. More likely: The property 'correction' in Australia was just a plateau, rather than a bubble bursting and so a bunch of investors saw Australian property as a highly reliable asset next to the shaky situations in Europe and the US.

 

[clogged]

I don't think it was a Rudd change, as I've heard complaints about Chinese buyers from before Labor won govt. But I guess they could have been generic racist complaints and something did change to increase investment 9-fold. More likely: The property 'correction' in Australia was just a plateau, rather than a bubble bursting and so a bunch of investors saw Australian property as a highly reliable asset next to the shaky situations in Europe and the US.

Err yeah. In 2009 Rudd changed the foreign ownership laws. He repealed some of these but not all. Much easier for a foreign investor to buy residential property now than it was in 2007

http://www.smh.com.au/business/foreign-investors-flock-to-australian-property-20091105-hzx3.html
http://www.crikey.com.au/2010/05/17/house-prices-still-on-the-up-while-loans-head-down/

 

[Ratts of Tobruk]

That SMH links says:

"Foreign non-residents are still prohibited from owning existing dwellings in Australia," he said. "They can only purchase a new dwelling or build one from scratch."

Temporary residents are only allowed to purchase one existing dwelling, he said "and only if they will live in it."

Nonetheless, the recent FIRB rule change redefined "new dwelling'' to mean unsold property rented out for 12 months or less.

The changes also allow foreign companies to buy established dwellings for use of Australian-based staff.

I would be surprised if that made a huge difference, when foreign investment was already prevalent? The theory behind the change was to provide investment for new housing so that there was greater housing stock for the demand. That makes a kind of sense.

 

[clogged]

That SMH links says:

I would be surprised if that made a huge difference, when foreign investment was already prevalent? The theory behind the change was to provide investment for new housing so that there was greater housing stock for the demand. That makes a kind of sense.

Of course you would be.

 

[Ratts of Tobruk]

Weak comeback. The point is, as I have stated, is that foreign investment was complained about pre-Rudd. I don't think you have retorted that, possibly because you heard such complaints yourself. The fact Howard felt the need to introduce Home Buyers Grants also suggests that maybe there was a problem with house prices before Rudd - were those not related to foreign investment, but somehow those problems have since been solved?

 

[clogged]

Weak comeback. The point is, as I have stated, is that foreign investment was complained about pre-Rudd. I don't think you have retorted that, possibly because you heard such complaints yourself. The fact Howard felt the need to introduce Home Buyers Grants also suggests that maybe there was a problem with house prices before Rudd - were those not related to foreign investment, but somehow those problems have since been solved?

Your signature block by itself suggests you are completely unable to perceive issues without your intrinsic bias towards the Labor party (like Geelong - LMFAO).

Foreign investment was complained about? So what? There are definitive quantitative measurements that it has increased enormously in the housing market since the GFC, and that the relaxation of rules by Rudd were the progenitor.

Not exactly sure what the FHOG under Howard has to do with foreign investment - that was brought in as a kickback to the real estate industry because of concerns about the effects of the GST.

 

[Ratts of Tobruk]

Your signature block by itself suggests you are completely unable to perceive issues without your intrinsic bias towards the Labor party (like Geelong - LMFAO).

I do not have an "intrinsic bias towards the Labor party"; I am not "unable to perceive issues" without bias; and are you suggesting Geelong wasn't a good football team??? Maybe you aren't able to perceive reality?

As my signature says, The Economist agrees with my concerns over The Liberals. Obviously the two posts on Labor and The Liberals use creative licence, but the primary complaint that The Liberals and their supporters were massively misleading the public hasn't changed at all since the election.

 

[clogged]

I do not have an "intrinsic bias towards the Labor party"; I am not "unable to perceive issues" without bias; and are you suggesting Geelong wasn't a good football team??? Maybe you aren't able to perceive reality?

Geelong were a good football team, wholly unlike the recent Labor government.

 

[yibbida]

http://www.watoday.com.au/business/...-from-canada-to-australia-20140224-33ca8.html

Research by HSBC Bank suggests more than one-third of affluent Asians own overseas property, and that our market is the number one destination for further investment. Of the wealthy mainland Chinese surveyed by HSBC, 9 per cent owned property in Australia, while of the respondents from Hong Kong, 10 per cent did.

Of the rich Indians surveyed 18 per cent owned Australian property, 19 per cent of Indonesians and Singaporeans, 26 per cent of Malaysians, and 5 per cent of wealthy Taiwanese.

But while home buyers may complain, it’s great news for local property developers, such as the listed Australand.

It revealed in its annual results on February 17 that it sold about 15 per cent of its residential developments to offshore investors in 2013, primarily mainland Chinese, almost double the historical average of 8 per cent.

 

[Run n Spread]

Weak comeback. The point is, as I have stated, is that foreign investment was complained about pre-Rudd. I don't think you have retorted that, possibly because you heard such complaints yourself. The fact Howard felt the need to introduce Home Buyers Grants also suggests that maybe there was a problem with house prices before Rudd - were those not related to foreign investment, but somehow those problems have since been solved?

Foreign investment/income generation in terms of 457s and foreign property ownership are major things that need to be reviewed. If people make money off their property appreciating good luck to them but it adds no value to an overall economic production. Property should rise or fall purely on supply and demand, not by having policies that artificially inflate prices as it is supposedly good for the economy. It isn't. I reckon restrictions based on who can own Australian residential property should be put in place strongly favouring citizens. Similarly 457s need a drastic overhaul but no politician has the stones to com out and really tackle immigration. just easier to bitch about refugees.

 

[Xsess]

Yay the Baby boomers. Generations following them are now working slaves putting in the longest working hours in the developed world to pay for artificially high real estate. Families can no longer afford children because two incomes is a financial necessity when paying off an average mortgage. On top of that we also get to fund their retirements and unsustainable healthcare with our ever increasing taxes.

 

[crackerjack4X4]

Baby boomers aren't to blame for inflate house prices. Baby boomers had record high interest rates and no First Home Buyers Grants. On top of that they needed 20% deposit.

First Home Buyers Grants, 5% deposit, record low interest rates and foreign investment are to blame. Stop snivelling and get a second job like the boomers did.

 

[ClokesShankedIt]

Baby boomers aren't to blame for inflate house prices. Baby boomers had record high interest rates and no First Home Buyers Grants. On top of that they needed 20% deposit.

First Home Buyers Grants, 5% deposit, record low interest rates and foreign investment are to blame. Stop snivelling and get a second job like the boomers did.

Yes ... Gen x and y just suddenly recognised the actual value of houses that previous generations overlooked. ....

 

[ClokesShankedIt]

Where did you go? Got anything to say about this?

Of the rich Indians surveyed 18 per cent owned Australian property, 19 per cent of Indonesians and Singaporeans, 26 per cent of Malaysians, and 5 per cent of wealthy Taiwanese.

But while home buyers may complain, it’s great news for local property developers, such as the listed Australand.

It revealed in its annual results on February 17 that it sold about 15 per cent of its residential developments to offshore investors in 2013, primarily mainland Chinese, almost double the historical average of 8 per cent.

http://www.theage.com.au/business/c...-from-canada-to-australia-20140224-33ca8.html

We have a housing shortage but are selling 15% of developments to foreigners ... nope, gen y and gen x just need to knuckle down and suck it up!

 

[crackerjack4X4]

Or just snivel about how hard done by they are.

When I brought my first house (dog box) interest was 17.5% Could you imagine what would happen today if interest rates were that high???
I would f..... clean up when all these spoilt little snivelers went arse up.

 

[clogged]

Or just snivel about how hard done by they are.

When I brought my first house (dog box) interest was 17.5% Could you imagine what would happen today if interest rates were that high???
I would f..... clean up when all these spoilt little snivelers went arse up.

Except you wouldn't because the economy would be completely moribund and the value of your assets would be in the toilet.

To where did you bring your first house?

 

[ClokesShankedIt]

Or just snivel about how hard done by they are.

When I brought my first house (dog box) interest was 17.5% Could you imagine what would happen today if interest rates were that high???
I would f..... clean up when all these spoilt little snivelers went arse up.

Did the poor boomer have his myth busted? Sorry

Actually it goes to show how BS house prices are right now when this boomer leech has 17.5% interests rates but isn't spending too much more hand half his wage.

You just owned yourself champ.

 

[crackerjack4X4]

What???

 

[crackerjack4X4]

I agree house prices are BS at moment and it's increasingly hard for young people to break into the property market but to just blame the boomers is also BS.

 

[ClokesShankedIt]

I agree house prices are BS at moment and it's increasingly hard for young people to break into the property market but to just blame the boomers is also BS.

Why not? You're the biggest voting bloc and the generation who owns most property.

 

[crackerjack4X4]

Why blame your parents for working hard and buying a house or three?

 

[Bradesmaen]

Why blame your parents for working hard and buying a house or three?

Because they don't need 3 houses. I'm a fan of limiting the amount of houses people can buy, its ridiculous. There are plenty of other places to invest and the majority of them don't involve screwing over an entire generation of people.

 

[ClokesShankedIt]

Why blame your parents for working hard and buying a house or three?

Because you didn't have to work hard for it? You sat on your arse and watched the CGT changes double the price of your house in 4 years. You didn't have to compete with Chinese money and boomers reinvesting the profits the government handed him into rental property.

Do you even understand the graph I posted? I know that you struggle with the quote button but you must be good for something

 

[crackerjack4X4]

I sold my 2 investment homes, just not worth the piss and pain it caused me.

There are 200,000 immigrants coming to Aust. every year, don't you think that may cause a blow out in house prices?
record low interest rates and foreign investment???

It's much easier to just blame the older generations for your financial woes.

 

[crackerjack4X4]

I know that you struggle with the quote button but you must be good for something

That gave me a good giggle

Because you didn't have to work hard for it?

Another good giggle, I'm still working 65 hrs per week., but I will retire with enough $$$ without being a burden on the public purse.