china now number 0ne, page-3

"Chinese buyers are flocking to overseas markets to escape government measures to rein in escalating home prices, including restrictions on buying more than one home and higher capital gains taxes.

“Chinese buyers are a rising tide,” said Andrew Wilson, senior economist at Sydney-based real estate data company Australian Property Monitors. “We’ll continue to see a lift in Chinese investment into this country as the Australian dollar continues to fall and as residential property continues to strengthen.”"



I find it mind boggling that Aussies don't see a problem here.

If China has to apply rules so it doesn't shoot itself in the property foot - then just what the hell is Australia going to do to stop being shot as well?

After all, if they keep coming downunder, the amount of property available in Australia is minute compared to what is available in China.

We should have red lights flashing and sirens screaming trouble about this.

Lets take this extended ------------ normal houses are now going in Syd and Melb for $1million plus. Some I know have gone recently for $2 mil - but lets say commonly for $1mil -

what happens when Chinese money keeps coming and drives those prices to $5 million - for normal houses?

Not possible? Think again --------- look what they did to china and look at the necessary controls.

Still think it impossible?

So, lets assume possible ------------- what does that mean for Aussies?

Well, if you sell - you get a large wad of cash if it is home - but, then, you have to buy another one.

It also means your kids will never get a house of their own - until you die - assuming you leave it to them.

Also, it might mean taking a wacking mortgage and spending up.

For rental house s - it means massive cost outlay - with a cap on income - the cap being ability of renters to pay.

If you sell your rental - you get a wad of cash and a hell of a tax bill - so the gov. does ok. You only get this once of course - and the loss from CGT probably ensures you can't buy a similar property - you will have to buy further out if you want to get back into property.

Does all this sound great?

Buggered if I know - I guess it depends on where you sit in the mix.


Reverse the situation - imagine if Australia had a population of 10 Billion - and we all became wealthy -- and, we chose India for a destination for property investment - and went there in droves and pushed the price of their properties through the roof.


Is that good for India? Is that good for their people?


hmmm.


have a great evening

Pinto