Foreign interest in Australian housing has dropped by more than 50%

[Blacklight]

You cannot build anything unless council approve your blueprint. It does not matter if you are using contractor or not. They will have to approve your blueprint, then you can build it.

You either submit your own or you can pick one form the local council, even if you pick one from your local council, you still need 2 to 3 years to finish your home.

But if you insist on your own print, then it will take much longer.

When we were building our house we had the same issues, then we found a contractor who had experience with the local council. We got a lawyer and had specific milestones linked to the payment schedule, the project was finished in about 12 months.

Had we not gone down this road, it would have taken us 2 to 3 years as well. This is what I meant, there are contractors out there who know how to get things done , the right way, the first time. These are the ones you should get a hold of. The time saved will be well worth it.

 

[Shajida Khan]

Interesting, the only thing that is keeping me from using my Aus PR is the red hot Sydney real estate market. Compared to Seattle, I like Sydney and Goldcoast more. That said I have seen too many false starts in 'bubble correction' over past few years that I am too skeptical about Housing market ever cooling in Sydney.

I heard negative gearing along with foreign investment is also to be blamed a lot for this feeding frenzy in Sydney.

 

[jhungary]

I can't go into details on a public forum, but we have dealt with these issues before with clients from numerous countries. There is always tax to pay, the question is where do you decide to pay it. And investing decisions are more complex than just the tax planning.

I'm not trying to solicit your business BTW, but the comparative analysis of the two countries respective property markets is quite soundly in favor of New Zealand. There is a reason we are getting so many investors from Australia buying over here, particularly from WA.

lol I know

Yeah, but I just don't want to invest in another country at this moment.

I know quite a few opportunities in NZ but just not wanting to go there yet.

 

[xyxmt]

Chinese are now focused on Toronto property market, Property here is totally our of reach of locals.

 

[jhungary]

When we were building our house we had the same issues, then we found a contractor who had experience with the local council. We got a lawyer and had specific milestones linked to the payment schedule, the project was finished in about 12 months.

Had we not gone down this road, it would have taken us 2 to 3 years as well. This is what I meant, there are contractors out there who know how to get things done , the right way, the first time. These are the ones you should get a hold of. The time saved will be well worth it.

Well, here in Australia is a bit different. Contractor will simply recommend the canned design (The one that council pre-approved) because they want to earn money as quickly as possible and move on to the next project.

Even if we hire a contractor, if we want to build a house our way, you still need to jump thru hoops. Yes, contractor may know what the council is looking for, but in the end it still need to cut a lot of red tape if you are going for the way you like it.

 

[jhungary]

Interesting, the only thing that is keeping me from using my Aus PR is the red hot Sydney real estate market. Compared to Seattle, I like Sydney and Goldcoast more. That said I have seen too many false starts in 'bubble correction' over past few years that I am too skeptical about Housing market ever cooling in Sydney.

I heard negative gearing along with foreign investment is also to be blamed a lot for this feeding frenzy in Sydney.

You can't sell if you are only a Permanent Resident. You probably will have difficulty finding mortgages. (not a problem if you can fork out 500k or more in one setting)

I think Sydney real estate market will come down a bit now, and flatten in a year or two after the latest round of government action. But still a long way to go.

In US, you should really invest in Mid-Western town, Seattle is full of investment already, but Mid-West like Wisconsin, Iowa needed investment so bad they will bend backward over your money.

 

[Shajida Khan]

Well, here in Australia is a bit different. Contractor will simply recommend the canned design (The one that council pre-approved) because they want to earn money as quickly as possible and move on to the next project.

Even if we hire a contractor, if we want to build a house our way, you still need to jump thru hoops. Yes, contractor may know what the council is looking for, but in the end it still need to cut a lot of red tape if you are going for the way you like it.

Will a house with pre-approved design come out to be cheaper if built on a piece of land that you purchased, as compared to buying a house or apartment in secondary market?

You can't sell if you are only a Permanent Resident. You probably will have difficulty finding mortgages. (not a problem if you can fork out 500k or more in one setting)

I think Sydney real estate market will come down a bit now, and flatten in a year or two after the latest round of government action. But still a long way to go.

In US, you should really invest in Mid-Western town, Seattle is full of investment already, but Mid-West like Wisconsin, Iowa needed investment so bad they will bend backward over your money.

Heh, at 19 I am still too young and green and poor to go for any Investment. My first worry is buying a home to live in Sydney. I visited Sydney, Goldcoast and Melbourne in Oct'2013 and loved it. Climate is simply marvelous.

 

[jhungary]

Will a house with pre-approved design come out to be cheaper if built on a piece of land that you purchased, as compared to buying a house or apartment in secondary market?

Buying second hand housing would be cheaper than buying a vacant lot and build one, but that will be cheaper than buying a so called "Designer" house which was built for you, new.

Many people simply would buy a existed dwelling and knock it down and build a new one on the lot. This is what we refer to as "knock down rebuild" Usually if you are doing this, you have a contractor who have a series of house you can build in that lot they recommended, but if you want to build your own house, you need to hire a architect and draw up the BP for you.

Heh, at 19 I am still too young and green and poor to go for any Investment. My first worry is buying a home to live in Sydney. I visited Sydney, Goldcoast and Melbourne in Oct'2013 and loved it. Climate is simply marvelous.

19 eh? It's a long way to go til home ownership, presuming you are still in college, which mean you still need to find a job after you graduate and work about 10 years before you can save up for the deposit for a house. It will go easier if your family is willing to fork out some of the deposit but generally, you are looking at 10 + years to start worry about this, then another 10-15 years to finish worrying.

 

[Mista]

Properties in Australian and Canadian cities are heavily speculated by the Chinese. Sydney and Vancouver have the most unaffordable housing in the world after Hong Kong.

http://time.com/money/4193804/hong-kong-least-affordable-city-2016/
http://www.demographia.com/dhi.pdf

Beware of the bubble.

 

[Jlaw]

Chinese are now focused on Toronto property market, Property here is totally our of reach of locals.

Toronto local government trying to cool house prices but not working. Recently introduced a non resident tax of 15%. Doubt it will work like it did not work in Vancouver

 

[Shajida Khan]

19 eh? It's a long way to go til home ownership, presuming you are still in college, which mean you still need to find a job after you graduate and work about 10 years before you can save up for the deposit for a house. It will go easier if your family is willing to fork out some of the deposit but generally, you are looking at 10 + years to start worry about this, then another 10-15 years to finish worrying.

In 10 years, I think median house price in Sydney will be 50-60 million Dollars. It is already in excess of 1 million.

BTW, what kind of arrangement do these investor buyers in Sydney go for these houses in terms of ownership. Do they just let the house lie vacant or do they actually rent it out?

I heard in Vancouver they actually let the houses in very prime locations lie empty and only targeted capital gains.

Update :
For a change it is the first time I have seen the B-word mentioned on Domain.com.au in any other context than 'fantasy'.

https://www.domain.com.au/news/how-...ing-bubble-only-when-it-pops-20170403-gvc30m/

 

[Mista]

In 10 years, I think median house price in Sydney will be 50-60 million Dollars. It is already in excess of 1 million.

That's exaggerating.

 

[jhungary]

In 10 years, I think median house price in Sydney will be 50-60 million Dollars. It is already in excess of 1 million.

BTW, what kind of arrangement do these investor buyers in Sydney go for these houses in terms of ownership. Do they just let the house lie vacant or do they actually rent it out?

I heard in Vancouver they actually let the houses in very prime locations lie empty and only targeted capital gains.

Update :
For a change it is the first time I have seen the B-word mentioned on Domain.com.au in any other context than 'fantasy'.

https://www.domain.com.au/news/how-...ing-bubble-only-when-it-pops-20170403-gvc30m/

It would be roughly the same amount now, it will be about 700k to 1 mil.

Most overseas buyer will leave the house vacate for the duration, not renting it out but simply Hoarding it before turn them around, it was before, but now, the government will force you to sell the house if you do that.

Also, overseas resident cannot buy more than 1 property and will not be able to secure loan, Permanent Resident included.

The bubble is going to burst, if the Australian government keep stopping Chinese buyer buying properties in Australia.

 

[Shajida Khan]

It would be roughly the same amount now, it will be about 700k to 1 mil.

Most overseas buyer will leave the house vacate for the duration, not renting it out but simply Hoarding it before turn them around, it was before, but now, the government will force you to sell the house if you do that.

Also, overseas resident cannot buy more than 1 property and will not be able to secure loan, Permanent Resident included.

The bubble is going to burst, if the Australian government keep stopping Chinese buyer buying properties in Australia.

Previously I used to think that these properties are being bought using money earned in China. But if it is one property limit then it should not contribute that massively to the growth of prices, unless people are bypassing that restriction.

Even if a person with PR has job in Aus, will it be hard to secure a bank loan? I mean practically. Theoretically a lot of flexibility is in the hands of branch manager too, but I guess they will need to establish your credit history etc.

That's exaggerating.

I wish I am wrong. I looked into history, seen prices moving from 200-300K to 1 million, 1.2 million. You should see some of the prices in Canary Warf etc, already in 10s of million and we are talking about town houses here.

 

[jhungary]

Previously I used to think that these properties are being bought using money earned in China. But if it is one property limit then it should not contribute that massively to the growth of prices, unless people are bypassing that restriction.

Even if a person with PR has job in Aus, will it be hard to secure a bank loan? I mean practically. Theoretically a lot of flexibility is in the hands of branch manager too, but I guess they will need to establish your credit history etc.

The government just limited one per overseas resident in recent years, probably not more than 2 years ago. Before then, they did not have a cap and you can buy whatever and however amount of houses you want, as long as you can pay for it.

Today, still people are bypassing the restriction, either uses family member who are in Oz to buy them, or uses other mean to invest in it, either way, I think unless we are going back to 1990s when the government forbid overseas buyer, the housing market is always going to be unaffordable for local people.

PR does not change anything because you are not a Australian Citizens, bank still see PR as flight risk and you will need a Citizen to co-sign your loan, of course, unless you can pop up about 70% for deposit, PR does not mean anything now.