Social Blogs

Below is an extract from a property newsletter that I pay for. In the past 18 months or so there has been much discussion about the Australian property market crashing, a couple of private contacts on this site have talked about it and made enquiries to me about it. Obviously we have had a correction but it has been nothing like a crash and our markets have started the next phase which is one of the reasons I am putting this blog out there. 

Take note of it if you like and everyone will no doubt have their own social perspective of the evils and such of property and who can and can't afford it. My personal advice is too look to anything with a land base (house and land) and low level town houses and units (two story's max). Sydney people would be well aware of the dangers that have emerged in high rise.

Here is the extraction!

‘In the current environment, Australia appears as a safe harbor — both comfortably close and far from home.’
These words come from the CEO of Juwai.com — a Chinese website that lists overseas property.
He was commentating on the surge in interest in luxury Australian real estate from wealthy investors in Hong Kong.

Hong Kong tops the list for world’s most expensive real estate. The average price of a small apartment is over US$1.2 million.
And by the way, Hong Kong has now officially surpassed New York City as the place with the highest concentration of super wealthy people.
Juwai.com — the largest property portal for Chinese investors — recently reported that enquiries from Hong Kongers wanting to purchase Australian houses has increased 50-fold over the last three months.
Most of these enquiries focus on Sydney and Melbourne.

Why? think of the current protests.

It’s by far the most significant and widely publicised protest we’ve seen in the region since the pro-democratic demonstrations in Tiananmen Square over 30 years ago.

Of course, as you know by now history repeats, or rhymes, in set time frames.
In financial markets, it’s easier to observe this because we can chart both time and price.

Take a major event in the market and count forward, 30, 60, 90, or 120 degrees — in a period of days, weeks, or years — and markets are likely to turn or pause on (or close to) those counts.

We can do the same with historical events.

The Tiananmen Square protests in 1989 lasted nearly eight weeks.
Today, we’re several months into the current Chinese/Hong Kong unrest and it shows no sign of stopping.
The consequence's are predictable. More Asian money will flow into Australian property.
Cross boarder investment is always a major feature of the real estate cycle.

In 1990, the banking crisis in Tokyo led to a flood of investment from Japanese buyers into Thailand, Malaysia, and Indonesian real estate markets.
Money also fled to the ‘safety’ of US real estate when Thailand and its neighbours experienced their banking crisis in 1997 — especially to cities such as New York and LA.
Sometimes policymakers do this this quite deliberately.

In 2008, former Aussie PM Kevin Rudd removed restrictions on foreign purchasers to stop our property market crashing. Real estate values boomed by 25%.
30 years ago, after the Tiananmen Square massacre, Bob Hawke opened the gates and allowed 40,000 Chinese students to stay in Australia.

Will current PM Scott Morrison be facing a similar situation?
There are currently over 100,000 Australian’s living in Hong Kong. They own about 600 of the nation’s firms.
Most of the expatriates are Chinese Australians (or Hong Kong Australians).

Hong Kong has no private land ownership.
It was set up on the right premise. Britain acquired the territory from China on a lease. Residents paid 5% of the property value per annum to reside there.
The costs of administration were taken from the rent. That meant that taxes on productivity were low — and as such the economy thrived. The people of Hong Kong had more to spend in their pockets.
Of course, the system has broken down over the years. Less of the rent is collected — and property speculation is rife.

Hong Kong are the most levered nation in the world, with the most expensive real estate in the world.

Our property looks cheap in comparison. Furthermore, it’s on a freehold title.

Australia has restrictions on overseas buyers purchasing established homes — and there are a range of higher taxes for those that do choose to invest.
However, demand is increasing, and non-bank lenders are out in force offering alternative streams of finance.

Here’s the forecast: This potential wave of money could inflate our property markets and carry us into an almighty real estate boom into 2026. You’re well placed to take advantage of it.

 

You need to be a member of 1Eyed Eel to add comments!

Join 1Eyed Eel

Email me when people reply –

Replies

                    • Thanks mate. LOL, TAD. You too.

                      You're open-minded and have good intentions towards everyone. I respect and admire that. 

                      Actually, I have not spoken about the loss to anyone since last night - in life. Don't want to. My wife won't ask me. She knows I will just nod and be silent LOL. 

                    • ’But, I am not sure scientists are lying about their climate change readings, such as this, do you?’

                      Short answer - um yes.

                      No believe in climate change, no money from the government honey. 

                      And that my friend is how this game works.

                    • Fortunately, we won't "see" this or need to worry about it, for 30, 50, 100 or even 500 years away. Who knows.’

                      Thats what their banking on - you not being here to figure out the scam.

                  • The history channel! Fark me pops.

                    Kids are always indoctrinated into the conventional societal doctrine of the time. It's called socialization, we learn cultural norms that allow us to fit in and interact with other in our society. If you think your any different or escaped this your kidding yourself. And we continue to be influenced by changing norms   all our lives.

                    Case in point : Mental health, particularly mens mental health. The amount of blokes I know now who admit to struggling with things is great. Many men aren't scared to talk about whats happening in there lives because societal norms have made it more acceptable. 

                • Super - these BRAINWASHED kids are out there yelling, shouting, stomping their feet and ADDING to CO2 emmissions.

                  How the feck did you come to the conclusion "They are doing something."

                  What exactly have these brainwashed kids actually done except make NOISE?

                  OOPS, my bad - that is what the Climate Change experts DO all the time, make noise but achieve nothing apart from taxing us into povertry.

                  Idealists - Pfft!

                  Now if you wish to go through the history of weather cycles around the world over the years it has been accurately recorded you may get one hell of a shock.

                  The fact that man is contributing negatively on the environment is without question, however to say we have impacted (negatively) on the climate has been nothing more than a mponey grab from UN and governments world wide.

                  • Your so much more eloquent than me!

                    • Poppa (Oh great demented one) we both forgot one very important point here - Super was educated under the same system as the protesting youth.

                      Mr Ripley (of Ripley's Believe it or Not) sums it up best.

                      "The truth is not what you see, nor is it what you hear. The truth is what you believe."

                      Super believes what his educators induced into his mind.

                      Real people know BS when they come across it.

                    • So true and they are totally blind to the forces at large....God help our children because Super won't!

          • I don't know how long it's been since you've been at school popsy but most kids don't listen to their teachers or care about much. In fact I'd say those are the two biggest challenges in teaching, getting kids to pay attention and not be apathetic.

            • How did they get these ideas then maggie.....its been a while since I was at school, they actually taught practical things back then.

This reply was deleted.

Latest comments

Poppa replied to Poppa's discussion Moses.......has he earnt respect yet?
"LOL my apologies Ken, you are exactly right!"
3 minutes ago
HKF replied to Chuck Norris.'s discussion Bonus Zone. Would it work in the REAL WORLD.
"The problem with this is the draw isn't even, you play some teams twice and others once, it would be an unfair advantage to the teams that get to play the bad teams twice while others will only get to pay them once."
6 minutes ago
Kenny Power replied to BENNY's discussion Time to give Cheika the flicka
"doesn't matter who their coach is,until they stop paying his $$$ for league players and instead use those funds to develop players they will remain a rabble"
17 minutes ago
Alan Hunt replied to Poppa's discussion Moses.......has he earnt respect yet?
"I reckon we are a very good chance to snare Arrow or Frizzell, who both seemed very chummy with the Eels boys from what i can see.
 
Fafita would be amazing but sadly no chance."
38 minutes ago
DR WONG.MD BSA (THE SLUGG SLAYER replied to Chuck Norris.'s discussion Bonus Zone. Would it work in the REAL WORLD.
"I think it would be better to earn a bonus point for scoring 4 tries, like they do in Super Rugby. 4pts for a win, 1 bonus point for scoring 4 tries or more, winners and losers."
40 minutes ago
Brett Allen replied to Chuck Norris.'s discussion Bonus Zone. Would it work in the REAL WORLD.
"That might work"
50 minutes ago
Girth Wind & Fire replied to Poppa's discussion Moses.......has he earnt respect yet?
"Moses plays great on a fast track with room to move.
He's got to learn to play to the conditions and how to manage the game. In my opinion he really started managing the game well when we were playing with the lead. Still needs to learn to manage it…"
52 minutes ago
The Mayor replied to Poppa's discussion Moses.......has he earnt respect yet?
"It's not Cumberland for just Col, it is for many of us. How good were the splinters."
58 minutes ago
Mark Camman replied to Chuck Norris.'s discussion Bonus Zone. Would it work in the REAL WORLD.
"Maybe there is a try scoring zone which includes the area between the posts and 10M on either side of the posts that is automatically a 6 point try with no conversion attempt. Would speed up the game and kickers rarely miss ftom this range anyway."
1 hour ago
robert maxwell replied to Poppa's discussion Moses.......has he earnt respect yet?
"parra players where on fire in figi last week and this week at home bankwest.
 sevo was upset ,as he rarely saw the ball, and blake, seems to have a should problem..
moses and gutho killed the last two weeks, and showed up hunt, dce ,and most.
as i…"
1 hour ago
Parrakeet replied to BENNY's discussion Time to give Cheika the flicka
"I found the 9s boring like touch footy. Watched the Rugby instead. "
1 hour ago
Poppa replied to BENNY's discussion Time to give Cheika the flicka
"Well said HOE, you have analysed the position very well and my reference to him having a rest is connatated to your views.
My criticism of Benny is just the lack of respect in  his flippant personal views of Cheika."
1 hour ago
Poppa replied to Poppa's discussion Moses.......has he earnt respect yet?
"Yes Mitchy, I agree it is only a fantasy that we would get Fafita.
On a side note, did you note how popular the Parra players seemed with each other and their teammates.
There maybe a subliminal entry there for many who may have notied how tight the…"
1 hour ago
Parra fan on The Hill replied to Poppa's discussion Moses.......has he earnt respect yet?
"My favorite Parra player. Full stop.
It would be sweet to sign on either Fifita, Arrow, Frizzell or Matherson. They all have class. We can then say we are starting to turn the corner from premiership pretenders to contenders.
I love it when Mitch st…"
1 hour ago
Mitchy replied to Poppa's discussion Moses.......has he earnt respect yet?
"Agreed Pops Moses has shown what he can do. Fafifta was huge and in a 9's format will often show up players and yes he'd great in blue and gold but  i doubt broncs would let him go.
 For me parr's just need a tough and consistent pack and Moses can…"
2 hours ago
Poppa replied to Poppa's discussion Moses.......has he earnt respect yet?
"Yeh Mutts, noticed Fafita with his arm around Guth at the presentation, I hope Guth is prepared to "turn" for him......the sacrifices we ask our players for......will they never end?
Mind you Fafita has got a lot of "hog" in him, but I could live wi…"
2 hours ago
More…