Property Investor Or House Hunter Makes Sydneysiders

Property Investor Or House Hunter Makes Sydneysiders

We found that property investors are more inclined to support foreign. Investment in the real estate market than those without such investments. This was based on a survey of Sydneysiders about their views about foreign real-estate investment. It is surprising that potential buyers who may be concerned about rising. Prices were more supportive than those not interested in buying a property.

We previously reported that more than 60% of Sydneysiders don’t want any additional foreign investment in residential property in Sydney. In this context, almost 900 Sydney residents were survey to determine the relationship between home ownership. Real property investment, stress around housing, and opinions about foreign investment. Our analysis shows:

Foreign investment is more favourable for those who have property-market investments than those who do not. If you compare those in housing stress with those not. There is no difference in their beliefs about foreign real property investment.

Views Of Property Investors

We are aware that rising house prices, Generation Rent, and foreign real property investment have created the social conditions that can increase cultural tension between local and foreign buyers. Local real estate investors are a group that is keen to invest in Sydney’s real property market. We were curious to see if those who have investment properties differed from those without.

We found that those who have investment properties are more likely to support foreign investment in Sydney’s residential market than those who don’t. 29% of investment property owners agree that foreign investors should allow to purchase properties in Sydney, compare with 17% who do not own investment properties. The 32% who were owners of investment property support foreign students buying properties in Australia while they study, compared with 19% for those without.

The government’s regulation on foreign investment was a more popular topic with property investors than it was for those without investment properties. 28% of them agree that it had effective regulate.

Views Of House Hunters Property

Greater Sydney’s house prices have risen rapidly in the past decade, and so has household debt. People who are looking to purchase a property might be concern about foreign investment in real estate, as they may feel that they are being priced out by foreign buyers.

We asked participants to complete a survey asking if they were actively seeking out a property. 23% of respondents said that they were. This group agreed with 31% that foreign investors should have the right to purchase properties in Sydney. That compares to 15% who are not interested.

Views of Housing-Stressed Households

Rising mortgage and rental prices are leading causes of discontent in Sydney. Although the exact measures of housing stress are not known, they can be used to provide a comparison value for how difficult it is for households to pay their housing costs. Common benchmarks for housing stress are a ratio of housing costs and income above 30%.

This measure revealed that 52 percent of respondents were experiencing housing stress. Another 33% of respondents spent less than 30% on housing, while 15% said they didn’t know.

We found no significant differences between those who have exceeded the 30% threshold and those who spend less on housing.

Other Causes Of Concern

We found that those involved in local real estate markets are still concerned about foreign investments in general. Our findings indicate that there may be cultural or other factors at play in discontent with foreign investors in Sydney, even if housing stress levels are not associated with different attitudes towards foreign investment.

We need to find out more about how Sydneysiders view being active in the property market as it relates to the rights of foreign investors to use real-estate as a means to grow capital.

Some Sydneysiders might see foreign buyers driving up housing values as a positive. They might be concerned that foreign investors could restrict their access to the property market, which might lead them to fear depressing their assets.

This type of shared commitment to real property investment could be a strong. Argument for treating real estate as an international asset class. While cultural tensions between local and foreign investors would remain at the local level.

Housing Affordability Land Problem Explained In Historical Steps

Housing Affordability Land Problem Explained In Historical Steps

It is a matter of dispute which group has played the most land in the creation of the increasingly. Expensive housing market in Australian cities. Two popular targets are the baby boomers and foreign investors.

My new book, The Geopolitics of Real Estate demonstrates that it is wrong to place blame. On specific foreign or domestic investor groups for short-term affordability problems.

Reverse-engineering the problem back to Australia’s founding of property-owning democracy is one way to look at housing affordability. The history of the problem shows that it was cause by five steps.

Aboriginal People Evict From Their Land

If you look at the timeline to analyze housing affordability, it becomes clear that the question is. Whose land are foreign and domestic real estate investors trading on?

You can go back a few centuries to find what Libby Porter, RMIT’s academic, calls the original dispossession. This is the time when Aboriginal peoples were force from their land.

Aboriginal land dispossessions are not just a collection of historical events that took place in the past. These acts created the legal and social conditions that enable land and real estate trading today.

This puts into sharp relief statements made by real estate investors in the country about foreigners invading their property.

Foreigners And Capital Were Transfer Onto The Land

Early British colonial settlements emphasized trade and migration. Edward Wakefield, an influential force in South Australia’s colonization. Advocate that land should sold, rather than given away, in the 19th century. This would encourage new landowners pay the emigration expenses associated with transporting migrants to provide labour for the colony.

Wakefield believed that immigrants would sell their labour to buy land. This he called systematic colonization, and he later advocated for these ideas in Canada and New Zealand. These ideas of globalizing the extent to which foreigners can be move through local colonial lands opened up new perspectives on the global market for labour and land.

Modern governments continue to use movement of capital and people through their real estate and land markets to support their economies and labour market.

A Property-Owning Democracy Was Create

A society that owns property is one where between 65%-85% of households have or are buying the home they live. The Australian government began building a property-owning democracy after the second world War. It required two interrelated tasks to build.

The first was to claim, measure, quantify, and distribute the land in preparation for real estate sales. The second was to create a new way of looking at real estate that would work within the property-owning society.

The government increased regulation of the movement and money of people across Australian borders after the war. It established a number of economic and social policies that were strongly aimed at shaping the way Australians think about real estate, or the Great Australian Dream.

The baby boomers were deeply influenced by post-war housing and economic policy, ideas about nationhood, citizenship, and the responsibility of suburban consumers of homes and household goods

Land And Real Estate Were Incorporated As Private Property

A series of crises in real estate and land emerged in the second decade of the 20th Century. As the settler politics of claiming land and defending it was challenged, Aboriginal land rights were brought to the forefront. A crisis in housing affordability arose as a result of increasing population and the effects on property-owning democracy in major Australian cities.

Comparing their experience with their parents, it was much more difficult for the children from the baby boomers to invest in urban real estate markets than they did. China was experiencing a land revolution as the baby boomers bought real estate in China in the second half 20th century.

In China, the collectivization of land effectively eliminated the land from the market for private property in the middle 20th century. A few decades later, it was radically restore. The end of the 20th Century saw China’s geopolitical rise change the flow of money and people around the globe.

Follow The Geopolitics To See Global Movements Of Capital And People

The Cultural Revolution was not the only reason for strong private property land and real-estate ideals. China’s key strategy for building wealth was the commodification and sale of real estate and land.

By the end of the century, the surplus Chinese capital had escaped the nation’s borders. The new middle class and super-rich Chinese sought foreign real estate opportunities.

The baby boomer dream of owning a real estate property was becoming more difficult to realize for their children at the turn of this century. However, the Chinese real estate dream was still very much in its infancy.

The history of foreign investments in land and real property shows that the global movement of capital and people is strongly link to geopolitics.

Chinese Investment In Residential Real Estate

Chinese Investment In Residential Real Estate

Public opinion continues to be divide by the large scale of Chinese investment Residential into Australia’s residential property market. Chinese buyers are often blame in Australia for driving up house prices and creating the current affordability crisis.

However, Chinese offshore sales are quite low. We estimate that Chinese residential real property investment accounts for around 2% of all Australian residential real estate transactions. This is based on approval figures from the Foreign Investment Review Board (FIRB), ABS data and our own data. In legal terms, Chinese investors are those who need approval from the FIRB to purchase residential property.

This figure is calculate by subtracting the estimate Chinese residential real-estate investment volume from total residential real-estate transactions. Based on FIRB statistics, residential property investment by Chinese investors was A$5.8 million in the financial year 2013. This is consistent with data from KPMG/University of Sydney on Chinese investment in Australia.

The total value of Australian residential property sold in the same period according to the Australian Bureau of Statistics was A$258 Billion.

Commercial Vs Residential

For the financial year 2013-14, we estimate that residential property investment by Chinese investors was A$5.8 trillion. This estimate is based on FIRB data that lists the total value of all approved real estate investments in each country. It does not distinguish between residential and commercial real estate.

Only foreign investors approve for total investment can split into residential and commercial real estate. The ratio of residential and commercial real estate was 53:47 for 2013-14. This ratio is compare to A$12.4 trillion in Chinese real estate investments. We get an estimate of A$5.8 Billion for residential and A$6.6 Billion for commercial.

Keep in mind that FIRB approval numbers are often higher than actual investment figures. The KPMG/USYD database reveals that commercial real estate investment was A$4.4 trillion in 2014. This is less than the FIRB approval numbers.

Residential Property’s Total Sales Value

The ABS registered 482,720 property transfers for the financial year 2013-14. The average price for residentials property in Australia rose 6.3% to A$516,300 from the September 2013 quarter and to A$548,900 in June 2014. We calculate the total value of residentials property sold in Australia using ABS quarterly Residentials Price Indexes data.

The Size Of Chinese Investments

According to FIRB data, 13.4% of residentials real estate investment is made abroad, Residentials with only 2% of that coming from China. These estimates align with the NAB Quarterly Australian Residentials Property Surveys. These estimates show that foreign buyers are interest in new properties at 12.5% to 10.2%, and established properties at 8% and 7.2% respectively for FY 2013-14.

The issue of foreign investment into the Australian residentials real property market is likely to continue despite declining economic growth and a weakening Australian currency.

Commentators need to at least look at the data before suggesting that Chinese investors are responsible for declining affordability.

Data sets that are use to provide information on Chinese investments in Australian real property come from different sources. They can produce different results and produce different results. In its 2014 Report on Foreign Investments in Residential Real Estate, the House of Representatives Standing Committee on Economics highlights the discrepancy in official ABS and FIRB data. It concludes that no detailed information on Chinese investments in Australia’s residentials real estate markets is available.

Based on our data, however, Chinese residentials real estate investment accounts for only 2% of total real estate sales volume in Australia. Chinese applicants for approval for residentials real-estate investment approval make up one-sixth of the potential foreign investors in real estate. This indicates that the housing affordability and housing crisis is not going to be solved simply by clamping down on one group.