And then there were none .

[kabab]

Depends on whether the increase in stock outpaces the demand, I suppose, and that's probably an assumption that I shouldn't have made. If it doesn't, then yes, we're fucked and the only real answer is that we have a few generations of renters, or we end up giving up on living in the capitals.

But how is it good if we all end up renting and having that money going away offshore! It's one thing if the homes are Australian owned and the rent money stays in our economy...

We don't have the infrastructure to live outside the capitals and the current government is unwilling to build it NBN anyone?

I really feel we have some deep structural problems in our economy...

[Roadsailing]

not wanting to derail this too much, but here is a guide I just found.

http://www.firb.gov.au/content/publi...ing_a_home.pdf

Can I buy a pre-owned home?
Because Australia’s foreign investment policy is
designed to increase the supply of new housing,
foreigners cannot normally get approval to buy
houses, flats or units which have been occupied.
The exceptions to this rule are:
Z foreign nationals temporarily resident in
Australia for more than 12 months, who
are buying a home here
Z foreign companies buying a home for their
senior executives who will be living in
Australia for more than 12 months.

This is the way it should be, but I don't think it is the way it do.

Maybe Tone will sort it out?

[seedyrom]

I find it ironic that we can't import a car from England unless we can prove ownership and use over there for 2 years, but we are happy to let foreigners buy our property without even living in the country

[Captiva Fan]

I find it ironic that we can't import a car from England unless we can prove ownership and use over there for 2 years, but we are happy to let foreigners buy our property without even living in the country

I guess that when the forrenners crash their houses into ours, the fact that their houses never met ADR's won't have much effect?

[plz_2_pimphomo]

I guess that when the forrenners crash their houses into ours, the fact that their houses never met ADR's won't have much effect?

Because cars sold in England don't adhere to any design regulations.

[MartyHusseinXF]

I had a look at some new units recently, very clear they were designed for wealthy Chinese, advertising material in what I presume was Chinese writing, very small rooms, small kitchens, no laundry etc.

[kabab]

Some units are not even marketed here directly to china!

[Captiva Fan]

Because cars sold in England don't adhere to any design regulations.

On the new side of things ... while there are such a thing as ADR's, if something never met those regulations it makes sense not to just assume it would.
This is why ADR's are pointless, at least in this circumstance.

On the used side of things ... UK cars are rusty shitheaps within approximately 6 days of being sold new. 10yo immaculately-serviced car here, most of the time that's a damned good buy; 10yo immaculately-serviced car there is about to snap in two.

I had a look at some new units recently, very clear they were designed for wealthy Chinese, advertising material in what I presume was Chinese writing, very small rooms, small kitchens, no laundry etc.

Most CBD units are like this (at least in Sydney & Brisbane & apparently Melbourne too) they're designed for dodgy overseas landlords to shove 18 students into.

[womblesti]

Investor style apartments are up to 30-40% FIRB in a lot of cases, higher if the development is being funded offshore too.

We recently did a more lifestyle development in a good part of Melbourne that was less than 4% FIRB.

There is a lot of Chinese money coming into the Australian property market.

[Sturmovik]

Massive foreign investment in real estate never ends well.
Just ask anyone in the Mediterranean

[JayTHEFordman]

There is a lot of Chinese money coming into the Australian property market.

majority of the NZ RE market is chinese investment, and he locals are pissed. Will not end well

[kabab]

Would interesting to see what happens if something changes in china and people dump those properties...

[Rona]

Depends on whether the increase in stock outpaces the demand, I suppose, and that's probably an assumption that I shouldn't have made. If it doesn't, then yes, we're fucked and the only real answer is that we have a few generations of renters, or we end up giving up on living in the capitals.

Trouble is the way a lot of the Chinese work it doesn't increase housing supply to the market. They leave the places empty. Few big $$$ apartments are bought left empty for years and then sold when they need cash or cap gains occur. It'll always be a balance but a big shift in who controls the strings over there could see a crash as the money supply runs out and they have a fire sale of hidden assets to maintain their lifestyle.

Seriously I was over in Vietnam and you had partially subdivided industrial estates that looked abandoned and heavy vehicle sales yard with 20+ prime movers that looked to be covered in 3+ months worth of dust. Then you had construction rental yards stuffed full of equipment including anything from small excavators to multi-million $$$ cranes. A lot of these joints the money is coming from abroad and it was blatantly obvious just driving past on the bus that the boom times were gone and shit was going south fast.

[Biggus]

Would interesting to see what happens if something changes in china and people dump those properties...

That's more or less what I think is a real possibility. Of course, that might take decades, and there might be someone else to come in and take over.

If we're not going to do much to change the foreign investment rules, then we'd better be looking at making it feasible for people to live away from the cities. Road, rail and telecommunications. I know that my income would get a pretty hefty bump up with fibre if it was connected tomorrow.

Trouble is the way a lot of the Chinese work it doesn't increase housing supply to the market. They leave the places empty. Few big $$$ apartments are bought left empty for years and then sold when they need cash or cap gains occur. It'll always be a balance but a big shift in who controls the strings over there could see a crash as the money supply runs out and they have a fire sale of hidden assets to maintain their lifestyle.

This shit needs to be tightened up.

[Mini]

Don't the majority of people who know things about economics still continue to say that you should just let an ailing company or industry die, because the employees & the economy overall will therefore find something more efficient to make more money out of?
That's the way I still read it, and that's basically what's happened.
You can't solely blame the Liberals, Ford waved goodbye under Labor.

Labour started the whole wind down but it was Howard who put into words that he did not want an economy based on manufacturing an set about making sure it happened. The smart economy I think he called it.