Should we blame foreigners, especially Chinese, for poor housing affordability? I don’t think so although there seem to be many people thinking so. Here are some comments I found on the web regarding high housing prices and poor housing affordability in Australia.
It is going to be hard to work out how much it is raising the prices because it is not just how many foreigners are buying but also how many are bidding up the price. Foreigners are potentially bringing in a lot of cash on cheap credit from overseas. It appears as those the chinese have been particularly interested in Australian property. If you think about it the wealthiest 1% of the chinese population equals 11 million people – half our population. It only takes a very small percentage of that group to decide to park some of their investment in Australian property for it to start distorting the market.
Recent articles and reports by real estate agents suggest that foreign nationals are buying around 30% of the real estate that is up for sale. Even Blind Freddy can see they are a major factor in this bubble and they are making housing less affordable. Late last year The Age reported a buyer from mainland China had recently purchased 4 by $5 million dollar houses in Melbourne purely for investment purposes. Glen Stevens must be playing dumb for political reasons.
Heard a frelance auctioneer on the radio today, he confirmed that more than 50% of his auctions are purchased by overseas interests. The area he covers was most of the inner city and suburbs within 15km of the CBD. Prices for these ’boutique’ suburbs have now been pushed out of the reach of most normal aussies, forcing them further and further out.
Stop foreigners buying australian real estate. It makes houses more expensive and hurts the families on a smaller income. Person on $60,000 can not ever compete with wealthy millionair on price. The government for working people?
Forget affordable housing. The changes in Foreign ownership laws will make the concept a thing of the past for the majority of working Australians. An Australian citizen borrows at 6.55%. Foreign investor borrows at 2-3%. An Australian citizen pays tax on any capital appreciation. A foreign investor does not. This is just the tip of the iceberg. Give it another 12 months and then we’ll see a real affordability crisis.
Foreign investment makes up half or more of all purchases. This is a major impact that Rudd turns a blind eye too. He doesn’t care about the furure of our children, he only cares about an economy that is charging ahead. At the loacl Australians expenses (rising interest rates). Squeezing residents of Australia out of the property market. Already the Chinese dominate Sydney CBD and northern line suburbs. This is pushing resident Austraians out to cheaper areas.