Bubbles do not wait for a decade to burst. Thus any suggestion about Australian Real Estate being close to a bubble phase is a myth. In an article written for Property Observer, Terry Ryder illustrates (and effectively) why there isn’t going to be an Australian property crash. While doing so, he speaks in line with what Glenn Stevens suggested about the Realty scene here.
All Commentaries
These are all commentaries on articles and videos on the web that are interesting, relevant or simply entertaining to people interested in Sydney Real Estate.
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What’s going to affect the value of my property in the long term? – Property Investment Update
Property investment update
I found an interesting article which talks about the factors that may affect property prices over a long-term. It suggests various reasons for property price movement, assuming demand-supply to be the core factor. Of course, demand and supply is also determined by a host of sub-factors like taxation system and affordability of housing.
Chinese Investors Keenly Interested in Sydney Property
Chinese buyers looking to invest in Sydney property market
Last night I was looking at an insightful video about the Australian property market. It showed how China was looking to explore the Australian Prestige Market in a big way and what property managers are doing to cash on the trend. Recent launch of the Domain Chinese magazine at Opera House was met with applause by about 380,000 Chinese Australians living in NSW. The magazine website showcased China’s growing optimism towards the Australian Real Estate.
Experts feel that the introduction of Significant Investor Visa has actually created this positive stir. The Visa allows Chinese citizens owning property in excess of $5 million in approved investments in Australia to enter Australian shores faster. Close to a million millionaires in China are showing some kind of interest in Australian Real Estate and the “wheel has really started to churn”. It will be unfortunate if such huge mass of potential buyers are not catered to satisfactorily. As the world continues to acknowledge the increasing wealth bank in Asia, Sydney Prestige Market is determined to realize this huge demand and profit from it before others do so.
The video demonstrates that Australian properties, shown to a few private clients in Shanghai, got a great response from them. Nine such properties were put on display for about 60 investors and already one of these properties is looking good for sale. Lord Andrew Hay from Knight Frank feels that Euro Zone is also close to realizing the beauty of Australian Property market. He adds that Australia has entered into the property ‘safe haven’ for European investors. They feel that it is a good place to enjoy life even while it remains a great place to educate their children.
I loved the video and quite agree with it. I think that apart from the Significant Investor Visa, the hike in Sales Tax and Stamp Duty for Hong Kong Real Estate has also resulted in the Chinese buyers drifting to Australia. Also, the Euro crisis has caused instability all over Europe and until the Euro hole is sealed, buyers may choose to find safe haven in Hong Kong, Singapore and Australia.
Do you personally feel that the Chinese interest in the Australian properties market will continue to be strong in the future?
Generation Rent in Sydney?
Lately, I came across an article which talks about the rising tendency of Australian youth towards renting/leasing property rather than buying it. You can read it here.
The article shows how there is a complete shift in ideology- while the past generations believed in buying properties, youth today looks towards the ‘rent’ option. Actually, with career becoming a lot more important, our youths want to live close to their workplaces. In these times when jobs change so quickly, it becomes a big problem to be tied up to a home that may be many miles away from your new workplace. Also, moving through traffic mess and missing out on the inner-city (CBD) community culture is not acceptable to them.
Because interest rates are higher than rent, today’s generation wants to skip that extra charge. They feel that “Interest paid to the bank is as dead as any rent money.” Statistically, Switzerland, one of the most buoyant economies, has least number of homeowners. The new generation argues that sometimes, high number of home ownership is just a camouflage for poor economic growth.
I am willing to agree with most parts of the article. I also think that high deposit cost is among the big reasons why the new generation looks the ‘rent way’. With Superannuation set to be 12%, those in their 20s and 30s will have a lot of money to buy homes upfront when they get old.
Also, homes come with a fair probability of Foreclosure or Short Sales. Why take that extra emotional burden along?
There is another point worth noting- With rising demands in rental property near CBD, investors can also have a field day in my opinion. Good for buyer-seller dynamics!
I invite your views on the topic.
