With Chinese investors spending almost $6 billion in Australia’s real estate market last financial year, the Federal Parliament’s House Economics Committee is examining the laws governing foreign investment. Australia has become among the most popular property investment destination for Chinese nationals, who are estimated by some financial institutions to be purchasing about 12 per cent of new homes.
Sydney and Melbourne attract the most interest, with some apartment blocks in those cities 100 per cent owned and occupied by Chinese nationals. But not everyone is concerned – Chinese investors have helped to boost the supply of Australian houses without making it harder for first-home buyers, according to Australia China Business Council president Duncan Calder, and data from the Foreign Investment Review Board supports the claim that the Chinese property splurge is overblown, with overall foreign investment in Australia’s residential property falling by 18 per cent in the past two years.
Meanwhile Rick Otton, renowned property coach in Australia and the UK, says property investors and home buyers shouldn’t worry about a market slow down because this is all part of the fluctuating cycle of the property market. However otton says that in order to stay afloat, even after an up cycle, home buyers must enter the property market with a flexible strategy that could help them get in and out of properties during different growth cycles.
Coming up on the show this week. We have some legal advice for a long term listener who is concerned about his son who is buying a property with the help of his parents but the concerns surround his son’s partner who has very little to contribute. We learn how to calculate the buffer you will need if you want to invest in property, an agent goes toe to toe with John McGrath over agents giving price indications to buyers – we haer about Hot Spotting’s Terry Ryder and his new price indicator index.
All that and lots more. You can get the show free every weekend at realestatetalk.com.au