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Why Chinese are buying Australian Property and the results. China invested $12 billion in the Australian property market last year.
For some reason, many individuals believe it is beneficial to Australia’s economy. It’s fantastic for Australians, but I have to admit that I don’t see any advantages to people coming to Australia to buy Australian property.
Let’s start with the impact that local real estate agents in Australia have felt.
Why China Is Buying Australian Real Estate?
Chinese investors are located in China. They don’t want to deal with Australian real estate very often, if at all. So they look for Chinese real estate, and becoming a real estate agent is simple.
In Australia, becoming a real estate agent takes about a month to six months. Property can be sold in Australia. It’s easy to understand.
Their only actual credentials are that they are Chinese and can communicate in Mandarin or Cantonese. Many local real estate brokers are being recruited from the Australian market.
The majority of the money coming in from overseas is going to Chinese citizens who have relocated to Australia. Thus there is no benefit to local real estate brokers in Australia.
Now, everyone can see these gigantic Chinese real estate companies springing up all over the place as Chinese real estate agents in these beautiful new buildings springing up all over the place as evidence.
Why Chinese Are Still Buying Australian Properties
In addition, many Australian real estate brokers are beginning to show signs of wear and tear. None of the money flowing into the Australian real estate market has benefited local real estate brokers in Australia.
Australian real estate agents are seeing all of this money flowing to Australia, and they’re seeing a lot of properties being bought and sold.
Think about the amount of money: $12 billion in the last 12 months. That’s a lot of money. That’s a lot of properties.
Check out the real estate agents in Australia. They’re also at a disadvantage when finding buyers or sellers because they lack access to Chinese social media.
This is how the Chinese perceive their customers on WeChat and, to a lesser extent, Weibo. Because they don’t deal with locals, if you’re buying or selling Chinese, you’ll only be dealing with Chinese.
There are a few laws, policies, and regulations to protect the Australian people in keeping money in Australia, but they see ways around them.
One of the laws is if you are from overseas, you’re an international. You’re not an Australian national. You cannot buy property within Australia unless you add to the stock.
What does that mean? That means that you have to, pretty much in the spirit of the law, buy a block of land and build a new house on this block of land.
You can’t just buy the already established house because that will be taking it away from the local Australians.
Why Do Chinese Buy Real Estate Abroad?
We have a small population, and we only have a limited number of places here.
If we allow the entire world to just come to our country and take all of the existing houses from Australians, the property prices will become more and more expensive as time goes on.
If you were to buy a place, you would have to build something somewhere else to replace the stock as in the housing stock.
So we don’t run out of houses for the people that are actually established and live here.
One of the ways that they have been manipulating this law is buying a mansion and then building it like a granny flat or making an extra room within their own house.
This doesn’t add to the Australian property market at all. It doesn’t add more stock; it just adds another room to your own existing house.
They’re exploiting all different avenues to buy property within Australia. People that are suffering are the people that live here.
How Chinese People Are Buying Property in Australia?
Why are so many Chinese people flocking to Australia to buy real estate? If you acquire a residence in China during the next 75 years, you must return it to the Chinese government.
A property cannot be owned indefinitely. They have no desire to relinquish their home in 75 years. They consider Australia to be a good investment.
If they invest in Australia, they will own the property for the rest of their lives. Local Australians are the ones that suffer as a result of this.
Because of all of this money streaming into Australia, many Australians are suffering. I don’t think anyone will benefit from it.
Australians don’t have to compete with the 24-25 million Australians within Australia. We have to compete with the 3 billion people around our country.
But this isn’t just bad for Australians. This isn’t good for the Chinese as well. You see, China’s economy has only just started to boom. It has only been about 20 years since China’s economy grew. Most Chinese are poor.
There are supposed to be 1.3 billion Chinese, but many of the people I speak to think there are 1.5 billion or even more. Only the top 1% are rich now.
If you’re in the top 1% of wealthy Chinese, you’ve made a lot of money off all the hard work of the rest of the Chinese within the country.
For you to take that money out of China and spend it in another country is so offensive. It’s not just the Australians being disadvantaged here.
The average Chinese are destitute because this money is not recycled through the Chinese economy.
What Percentage Of Chinese Wealth Is Invested in Australia?
Now, why are all these Chinese coming to Australia? Money can’t buy certain things in China. Australia has clean air, Fresh, clean water.
We have produced nothing that they can get in China. We have livability standards. Money can’t buy the standard of living that you can buy in Australia.
They’re leaving China for a better life. To take the money from the hard-working Chinese and spend it in another person’s country is offensive.
I was just told that a House was bought five years ago by a wealthy Chinese guy, and it’s been vacant the entire time as investment properties being brought within Australia, and nobody’s living there.
They’re not being rented out; it’s just the dormant housing problem within Australia. Many very rich buy these properties, knowing they can’t lose them within 75 years. They’re buying them for retirement.
Working in China, they have a retirement plan. When a House like this remains dormant for a long time, it takes the housing away from the average Australian.
So, therefore, the housing that is left becomes far more expensive and keeps pushing the house prices up.
What Percentage Of Australian Homes Are Owned By China?
So these policies that Australia has put in place to protect Australians are not being enforced, or there are just little loopholes around them.
None of these loopholes is being plugged up because people can find a way around everything. In Australia, many disgruntled people are living, and it’s not just the white Australians.
Everybody was born here now because it’s a multicultural society. There are many people born here with Chinese backgrounds that aren’t very happy. the beautiful country that they grew up in is slowly changing
I can see to the horizon. It’s clean, fresh, Beautiful air, and there’s no pollution. It’s one of the least polluted countries globally because we’re so far away from everybody else.
Things aren’t all that bad. We’re done here. Don’t let fear stop you.
I failed to mention one more thing to you. About six months to a year ago, I inspected the property. A Chinese-owned real estate agency in Australia was one of the country’s largest.
I arrived to check out a two-bedroom flat. There were a lot of white individuals there, as well as a few Europeans. There were a few Africans and two Asians with dark skin.
They were most likely from the Philippines, Indonesia, Malaysia, or similar. Then there was the Chinese individual.
How Much Land Does China Own In Australia?
What happened at this point was that a Chinese real estate agent came over. The means say oh, sorry, this department’s been taken and we updated our website.
You didn’t see it. Well, why the hell did he turn up to the inspection? It was already taken.
Then he tells me, look, I’ve got another apartment across the road. It’s half the size of a one-bedroom apartment.
It was over $200 a week more per week in rent, which was outrageous. It wasn’t nice of him.
Suggest that, in my opinion, I told everybody else to go away in Mandarin.
He spoke to the last couple. He talked to the Chinese couple there, and they waited out the front until everybody left.
So what I did was I decided to walk to the end of the street and spy on them for a while because I’ve been to China. I’ve been discriminated against in China before; I didn’t think that I would be able to get away with it in Australia.
He took the Chinese couple up to see the apartment after everyone had departed, and he thought no one was looking.
As a result, it transports them to the flat. Because you just sent everyone away, it wasn’t very nice of you. However, many people do not believe that discrimination against residents occurs.
They feel that it is the locals who are causing discrimination in Australia. Nonetheless, those who come here are exempt from discriminatory laws or regulations.
They can get away with whatever they want, but locals like myself are constantly scrutinized. I believe it is unjust. It’s not at all fair, in my opinion. In any case, this is the situation in Australia.
Here are my best blog posts
- General Spalding Chinese Assets in Australia (very important video)
- Hugh White on China
- John Mearsheimer on China
