What's your prediction on the Australian Dollar?

[drsmithy]

My understanding is foreigners can only buy new not established homes or has that changed?.

That's the rules.

But there's zero enforcement and only slightly more than zero interest in enforcement. Plus some massive loopholes that are easily exploited.

Remember the motto of our ruling classes is the same as it was in places like Ireland: keep the property bubble inflated, no matter the cost !

 

[drsmithy]

Foreigners or Tax? Don't blame foreigners for rising house prices

"As the Centre for International Economics has found, as much as 44 per cent of the price of a new home in Sydney is attributable to explicit and implicit local, state and federal taxes."

There's the obligatory dash of CIS ideology and speciousness in there but, yes, broadly speaking it's correct - the biggest reason property prices are so high is because all the costs around making a chunk of land usable are being built into the initial price and foisted on the first buyer, rather than properly spread out over communities and time.

 

[Alanslegal]

That's the rules.

But there's zero enforcement and only slightly more than zero interest in enforcement. Plus some massive loopholes that are easily exploited.

Remember the motto of our ruling classes: keep the property bubble inflated, no matter the cost !

I posted the FIRB information a few posts back stating that foreigners can buy all real estate properties as long as it will be their main residence. I have been actively looking to buy in Sydney City and have come up against many chinese foreigners - how do I know? I am chinese myself and can understand what they are discussing. I now only look at properties which have existing leases in place because I know that the FIRB will not grant approval for them to buy it because the existing lease makes the property an investment, not for residential.

 

[drsmithy]

FIRB: Real Estate

They can "buy all land and housing that can be used for residential purposes"

Per the guides linked on that page, non-residents may only buy new dwellings (or vacant land) and temporary residents may only buy a single existing dwelling as their PPoR while they remain temporary residents.

All must ask for permission beforehand.

 

[drsmithy]

I posted the FIRB information a few posts back stating that foreigners can buy all real estate properties as long as it will be their main residence. I have been actively looking to buy in Sydney City and have come up against many chinese foreigners - how do I know? I am chinese myself and can understand what they are discussing. I now only look at properties which have existing leases in place because I know that the FIRB will not grant approval for them to buy it because the existing lease makes the property an investment, not for residential.

Well, I have to do a bit of interpretation on what was meant by "foreigners".

But as I posted following yours, the explanatory notes go into more detail about what different types of property non- and temporary-residents are allowed to buy. Non-residents may only buy new dwellings. Temporary residents may only buy an existing dwelling if it is to be their PPoR.

Fundamentally, however, there's no enforcement and very little interest in enforcement (plus gaping loopholes, like the exemption for students, or that knocking down an existing dwelling and building a new one counts as buying a new dwelling), so it's all but guaranteed that even those meagre restrictions are being extensively broken, especially in spirit.

 

[Limewood]

So I guess the REI is right into it then or is the Aust. Govt Ok with just about anyone buying up OZ R/E?.

Then paying in any currency here is getting expensive.

I think the AUD will get stronger in the next year against most currencies, the only thing to bring it down will be something unforeseen or a crash.

 

[JohnK]

I can see why we are screwed.

The Swiss have it right.

 

[whatmeworry]

I can see why we are screwed.

The Swiss have it right.

Limit Immigration and protect industries?

Anyway, Aussie Dollar got a bounce today on Chinese Data.

Australian dollar soars on surprisingly strong China data

 

[JohnK]

Limit Immigration and protect industries?

Sort of. From memory foreigners could only own a house after 20 years residency.

But no we are much smarter than that in Australia. We let anyone buy property in Australia even those who have no intention of living here. And at the same time let them dictate the rules on that property.

Anyway, Aussie Dollar got a bounce today on Chinese Data.

And next week the Aussie dollar is going to get dumped on Chinese data.

Never ending story.

 

[cove]

We bought above 0.94 so it should definitely go higher. That way 0.9430 will look ordinary when really it should be a bargain.

 

[amaroo]

Sort of. From memory foreigners could only own a house after 20 years residency.

But no we are much smarter than that in Australia. We let anyone buy property in Australia even those who have no intention of living here. And at the same time let them dictate the rules on that property.

LOL not sure it's a good idea to emulate a country that profits from misery and world wide tax evasion.

 

[jetlagger]

Sort of. From memory foreigners could only own a house after 20 years residency.

But no we are much smarter than that in Australia. We let anyone buy property in Australia even those who have no intention of living here. And at the same time let them dictate the rules on that property.
.

Australia is much too soft on the FIRB regulations. I am well aware of so many properties being purchased on (for example) Gold Coast from questionable overseas money that are far from new builds.
Definite need to toughen up on the requirements.. far too many loopholes that are being exploited.
I welcome & profess the Singapore model, Swiss Challenge & the strict variance of scale what most clever countries profess for residential 'investments".*
*I have leaseholds, as not permitted for clear title for freehold purchase of property in several countries, so have a distinct right to compare.

Back on topic..

 

[whatmeworry]

LOL not sure it's a good idea to emulate a country that profits from misery and world wide tax evasion.

Yet we are a country that profits on giving overseas students higher education with no real prospect of actually working in the country.

Australia is much too soft on the FIRB regulations. I am well aware of so many properties being purchased on (for example) Gold Coast from questionable overseas money that are far from new builds.
Definite need to toughen up on the requirements.. far too many loopholes that are being exploited.
I welcome & profess the Singapore model, Swiss Challenge & the strict variance of scale what most clever countries profess for residential 'investments".*
*I have leaseholds, as not permitted for clear title for freehold purchase of property in several countries, so have a distinct right to compare.

Back on topic..

Australian Dollar has definitely benefited by our various real estate loopholes. Experts say that foreign purchases have not effected the market... Utter Bulls1ht!

 

[MEL_Traveller]

Sort of. From memory foreigners could only own a house after 20 years residency.

But no we are much smarter than that in Australia. We let anyone buy property in Australia even those who have no intention of living here. And at the same time let them dictate the rules on that property.


And next week the Aussie dollar is going to get dumped on Chinese data.

Never ending story.

my friend in Switzerland bought a house a few years ago... I think that would have put them at about 10 years of residency before they were allowed to buy. But IIRC there's a whole bunch of limitations around them selling (and something about them not being able to sell for a profit or something in the next 10 years... ie, no property market speculation). (well... it's something typically 'Swiss'... whatever the exact details are)

whats wrong with allowing foreigners to buy here even if they have no intention of living here? we allow Australians to buy property they have no intention of living in, and for the sole intention of investing and making money out of people paying rent (and therefore paying the mortgage of the owner).

and they get to write it off tax.

 

[sumthinfornuthin]

Possibly !!

maybe/maybe not....either might or might not happen and it might be fine if it does not rain

 

[jetlagger]

Yet we are a country that profits on giving overseas students higher education with no real prospect of actually working in the country.

Truly..what a farce.
Such a wonderful income stream for the Government.. & pre paid university fees, immigration agents, granting of student working visas well attuned to be exploited by your local restaurant etc..
Over 90% of foreign students never want to leave... great 'stepping stone" to gain residency, there is evidently very double standards.
Perception obviously being very differing to reality in Australia.

 

[severus]

^ And they don't quite realise they can't stay until they try to extend visa after graduation. Not one international student in my year was able to stay. Actually, one was able to find a job & sponsor, but the salary ($55K) was deemed too low so was given 28 days notice to leave.

On another hand, when we decided to purchase a property after years of renting, we were told quite sternly to look for newly built properties. So the FIRB regulation is followed through... at times.

 

[JohnK]

whats wrong with allowing foreigners to buy here even if they have no intention of living here? we allow Australians to buy property they have no intention of living in, and for the sole intention of investing and making money out of people paying rent (and therefore paying the mortgage of the owner).

Because they are unfairly increasing real estate prices with their investments making property ownership for Australian locals close to impossible.

 

[MEL_Traveller]

Because they are unfairly increasing real estate prices with their investments making property ownership for Australian locals close to impossible.

but Australians are doing the same with negative gearing.

I wonder what the proportion of Aussies vs foreigners in the equation for bumping up house prices when they may not have any intention of living in them?

 

[drsmithy]

LOL not sure it's a good idea to emulate a country that profits from misery and world wide tax evasion.

Heh, unlike Australia where tax evasion is practically a national sport (negative gearing, superannuation concessions, novated leasing, etc) and we send most of our exports to China.