Posts Tagged ‘Foreign Buyers’

rsimeon

It’s time for some very BIG property decisions


Kudos to the NSW government by becoming the first elected government in NSW to achieve a cash positive financial position – quite amazing that never before has this been achieved. The words ‘debt free’ don’t exactly go hand in hand with governments these days as we have become too accustomed to the monetary phrases of debt and deficits.

NSW Treasurer Gladys Berejiklian confirmed this week that NSW would post a $4.7 billion surplus in 2015/16 which just so happens to be $1.3 billion more than predicted in the June budget just four months ago. Still a massive turnaround from 30 June 2015 when net debt sat at $5.5 billion to a … more »

rsimeon

You want an Inquiry? Have one on Australian real estate

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Forget about a royal commission into our banks – what Australia really needs is a full and transparent inquiry into the Australian property markets. For example, Australia’s population currently sits at 24 million people. By 2026, our single households are projected to increase by a staggering 38.7 per cent. Just imagine the terms of reference?

Why is Sydney in a pattern where presently we see the lowest amount of homes (established) on the market? Why are we seeing the lowest ever number of first home buyers recorded sales? What exactly is the impact of negative gearing on Australian residential real estate? What is the precise impact of state taxes on our … more »

rsimeon

Home truths needed on housing debate

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Enter housing price growth into the topic although make sure if you want to be right that you always select the plural. For example, those in the real estate industry always focus on suburban or post code housing price growth. What we are reading now are housing price growth predictions of significant drops for Sydney and Melbourne which just so happen to be Australia’s largest and most active markets.

Allow me to put this into perspective given most have failed miserably in educating readers as to what exactly this means. Let’s say for the sake of this argument you own a house in Mosman – in six months’ time the value … more »

rsimeon

ATO Quickly Wields Its Big New Property Tax

‘ If you thought the election debate on negative gearing was interesting watch the new property debates get a whole lot hotter with the Australian Taxation Office’s (ATO’s) latest bombshell announcement which guaranteed will send shockwaves through property markets. No doubt this is just the next step following the ATO being handed total ownership of the Australian property transaction register in mid – 2015, a role they had been champing at the bit to control for quite some time.

From Friday July 1 2016 (the day before the federal election) all sellers of residential and commercial property worth in excess of $2.000 million will be deemed as an overseas investor unless … more »

rsimeon

Why, I Am Liking This Election

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Yes, I know everyone hates elections but the more I look at this election the more I like it simply because real estate is front and centre. History will judge whether the government and opposition erred by allowing negative gearing into the debate, although what they have done is to finally open that can of worms which previously had been removed from all discussions.

When you take the time to contemplate the direction that property prices are headed (thanks mainly to all these new developments) there are plenty of dark clouds building. For mine; the smartest solution is to simply limit the number of investment properties to a single tax file … more »

rsimeon

Out With the New and In With the Old

It would be fabulous if when property commentators write about the market they actually differentiate between the two markets that we have, being the new markets (namely houses and apartments under construction) and the old markets being the existing homes.

Now it has been very well documented in recent times that the “new” markets are about to face their first big Litmus test with the majority of lenders blacklisting a number of areas because they believe they are over exposed. If one looks at this “new” construction in Australia there were:

  • 2009 – 102,347 new houses and 37,672 new apartments totaling 140,019
  • 2010 – 111,382 new houses and 63,801 new apartments totaling 175,183
  • 2011 … more »

rsimeon

Why Property Markets Keep Confusing Us

‘I’m not sure just how closely you have been following Australia’s property markets but what I can add is we are now starting to see some amazing trends emerging that will have both negative and positive outcomes.

This week we read that despite our national apartment building boom rents continue to rise. With approximately 30,000 apartments nearing completion in Sydney I predict that we have seen the rental peak. Unbeknown to many the major banks have already started black spotting many areas across Australia – where they are now no – go areas for future lending. For example, where you have an area that has undergone unprecedented new apartment high density … more »

rsimeon

Property markets brace for hysteria and usual faux pas

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If some people think a declining clearance rate is a solid key performance indicator for our real estate markets they are badly mistaken as research identifies that the markets remain 60 per cent private treaty and 40 per cent public auction. Clearance rates are in my opinion more a mood indicator as to consumer confidence levels and not much more, although some commentators would have you believing they are the be all and end all.

If we are to better understand the intricate machinations of what is happening in our demographic markets I would like to see the property portals thinking in greater detail. For example, when a property appears on … more »

rsimeon

Are foreign buyers about to ‘short’ our residential markets?

For years now I have contemplated how an investment banker would run the Australian economy and now we are about to find out with Malcolm Turnbull taking over the reigns as prime minister.

Straight after the news broke I posted a message on Mr Turnbull’s Facebook page – “Congratulations on becoming Prime Minister of Australia.If I can ask you to do one thing – could you please appoint Kelly O’Dwyer as Housing minister. It’s rather embarrassing that the Australian government does not have a Minister for this important portfolio.”

There are major dark clouds forming and what we might expect is being discussed by a few, and if we are proven correct … more »

rsimeon

Why is property full of conflicting evidence?

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Let’s look at the facts and decide where first of all we need to separate the investment property markets and the first home buyer markets from the family residence markets.

We also need to look at the current NSW Government mandate where they intend to merge councils to ensure that NSW keeps developing and driving residential construction to record levels never seen before. Premier Mike Baird is a smart man as he knows that the investor market has never been larger given the record stamp duty and land tax receipts. These are the new ‘rivers of gold’ that will in part fund this massive infrastructure spend.

According to Stockland chief executive ‘the … more »

rsimeon

Property is just a simple mathematical equation

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Every year, as Sydney hits winter we can expect the inevitable property market predictions to come in thick and fast. Now before we get into the nitty gritty of these predictions there are a few observations that I made when I read these somewhat bizarre predictions.

Let’s look at some facts – the Australian Bureau of Statistics (ABS) released their latest data on Residential Property Prices in March 2015 which showed that the total value of Australia’s 9.500 million residential dwellings had increased to $5.500 trillion. At the end of the March quarter 2015 the ABS also advised that household net worth was $8,090.9 billion so we are talking big numbers … more »

rsimeon

It’s all about the economy not the property buyers


I’m struggling to find a time when the bureaucrats and politicians struggled as much as they presently are when trying to define what exactly is happening to the Sydney property markets – please note that I have used plural as against the popular and misrepresented singular definition.

Australia’s head cashier Joe Hockey is having an absolute shocker given he hails from a family that has a rich real estate heritage. For example, last week he stated that more houses were needed to fix the home affordability issue. “I like many others, if you have a home, if you’re already there with a mortgage; you wonder how your children are going to … more »