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Thread: Aussie property, the next speculator playground

  1. #1
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    Default Aussie property, the next speculator playground

    I have been following aussie property for quite sometime. With hong kong and singapore already safeguarded from property speculator, I wonder if australia could be the next speculator playground. Currently, foreigners are allowed to buy off the plan housing. Deferred payment is allowed upon paying 10% deposit. There are strong asian communities.

    One example, vision apartment in melbourne. Right in the city center. It will be the tallest residential apartment, more than 60 levels. One bedder cost 385K, u pay 10% (38K) and wait until TOP in 2016. What happen in 2016 is anyone guess. But it remind me of singapore before they ban Deferred payment scheme. It seems that it still got lobang for property speculator.

  2. #2
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    Quote Originally Posted by indomie
    I have been following aussie property for quite sometime. With hong kong and singapore already safeguarded from property speculator, I wonder if australia could be the next speculator playground. Currently, foreigners are allowed to buy off the plan housing. Deferred payment is allowed upon paying 10% deposit. There are strong asian communities.

    One example, vision apartment in melbourne. Right in the city center. It will be the tallest residential apartment, more than 60 levels. One bedder cost 385K, u pay 10% (38K) and wait until TOP in 2016. What happen in 2016 is anyone guess. But it remind me of singapore before they ban Deferred payment scheme. It seems that it still got lobang for property speculator.
    potential bubble if you ask me. many people in Australia are paying interest only for mortgage. not a good sign if you ask me.

  3. #3
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    There is one major problem with investing/speculating in Aussie properties... Foreigners can't buy resale units, meaning that you have to sell the unit back to an Aussie, and they aren't really prone to paying high prices. That partly explains why all the new Aussie condo launches are targeting wealthy asians in Malaysia, HK, Singapore, etc.

    Oh, and I think Melbourne is currently overbuilding, too many condo units being built in the CBD area. I do like some of them pretty much though, just don't think capital appreciation potential is good right now.

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    How about yield for passive income? If u pay 50% of 500K unit, which is 250k then u rent it for 2500 a month minus mortgage repayment 1000. U still get 1500 a month or 20.000 dollar a year.

    20.000 dolar income a year out of 250.000 investment ain't so bad right?

  5. #5
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    Quote Originally Posted by BV
    There is one major problem with investing/speculating in Aussie properties... Foreigners can't buy resale units, meaning that you have to sell the unit back to an Aussie, and they aren't really prone to paying high prices. That partly explains why all the new Aussie condo launches are targeting wealthy asians in Malaysia, HK, Singapore, etc.

    Oh, and I think Melbourne is currently overbuilding, too many condo units being built in the CBD area. I do like some of them pretty much though, just don't think capital appreciation potential is good right now.
    That means sell back to Australian citizen.... PR not included?

  6. #6
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    how friendly is australia laws to landlords?

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    Quote Originally Posted by buttercarp
    That means sell back to Australian citizen.... PR not included?
    I think its very important when selecting off the plan project, u choose the one that has a strong local demand, so when time to resell u can be certain of local preferences.

  8. #8
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    AUD SGD is quite high imo.

    Rental income tax, capital gain tax, high mortgage rates etc.

    I would rather change some AUD to earn 3-4% FD rather than buying a property there for rental income at the moment.

    My 2cents.

  9. #9
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    Quote Originally Posted by buttercarp
    That means sell back to Australian citizen.... PR not included?
    I think selling to PRs should be fine, and probably also to what is termed as 'temporary residents' too, probably refers to those on long-term work permits or the like. However, these buyers have the entire resale market to choose from, and the resale market prices are significantly lower than new launches cos foreigners can't buy and hence competition is less.

    Oh,by the way, don't just take my word for regarding the regulations, better to check their govt websites...

  10. #10
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    Quote Originally Posted by indomie
    How about yield for passive income? If u pay 50% of 500K unit, which is 250k then u rent it for 2500 a month minus mortgage repayment 1000. U still get 1500 a month or 20.000 dollar a year.

    20.000 dolar income a year out of 250.000 investment ain't so bad right?

    Well, aussie mortgage interest rates are very high, if you are taking a aud denominated loan you aren't going to get anywhere close to that yield. If you take a multi-currency loan, in this case borrowing in sgd, you can take advantage of the low sgd interest rate. However, you are then taking on forex risk as your loan and repayments are based in sgd, and your property price and rental income are in aud.

  11. #11
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    Quote Originally Posted by BV
    I think selling to PRs should be fine, and probably also to what is termed as 'temporary residents' too, probably refers to those on long-term work permits or the like. However, these buyers have the entire resale market to choose from, and the resale market prices are significantly lower than new launches cos foreigners can't buy and hence competition is less.

    Oh,by the way, don't just take my word for regarding the regulations, better to check their govt websites...
    Sure....will definitely check it out if really wanna buy.
    Thanks .
    Cos my bro who is residing there told me to buy, but I said can only sell to Aussie and he ask what about PR....lol...he stay there but is clueless about these things.

  12. #12
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    Quote Originally Posted by buttercarp
    Sure....will definitely check it out if really wanna buy.
    Thanks .
    Cos my bro who is residing there told me to buy, but I said can only sell to Aussie and he ask what about PR....lol...he stay there but is clueless about these things.
    Which project your bro suggesting?

  13. #13
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    Quote Originally Posted by BV
    Well, aussie mortgage interest rates are very high, if you are taking a aud denominated loan you aren't going to get anywhere close to that yield. If you take a multi-currency loan, in this case borrowing in sgd, you can take advantage of the low sgd interest rate. However, you are then taking on forex risk as your loan and repayments are based in sgd, and your property price and rental income are in aud.
    I think u are right... For 250K mortgage, I could expect 1500 repayment monthly instead of 1000

  14. #14
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    Quote Originally Posted by indomie
    Which project your bro suggesting?
    I did not ask cos I am not interested at the moment.
    But it is in Sydney city, the Mark or something like that.
    I will be visiting Sydney soon....perhaps I will go
    check it out .

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