ON what basis is it valid for foreign entities, foreign companies, foreigners to own Australian domestic housing?
HOW can this be justified? HOW valid would it be for Australians to own a slice of their domestic real estate?
WHAT is the agenda of the RE Sector? Is it that they are ignorant of PROXY Buying? Is it something they don’t know anything about?
THIS is what the issue is about … the total number of Australian dwellings that are being bought by Foreigners … we are talking about the numbers!
4 MARCH 2019
Australians are too suspicious of the nationality of our new neighbours …
Jonathan Chancellor, editor-at-large of Property Observer
Foreign investor interest in Australia remains strong, the Foreign Investment Review Board (FIRB) chair David Irvine suggests.
But the latest FIRB report revealed a strong shift with the United States stepping up its investment in the 2017-18 period accompanied by declining Chinese investment easing into second place.
*CAAN: What has brought about the fall in Chinese interest in our Real Estate are the Chinese Government capital controls and as recently as early February 2019 gaol terms to deter the money coming out of China … and the mission China has taken on to covertly recover its Billions by employing former law enforcement officials as seen in the Four Corners Project Dragon!
From the key points of Lucy Macken “China Continues to Dominate Australian Real Estate but the USA now main source Australia’s foreign investment”
–U.S. investment up to $36.5B 2018 financial year; increases in real estate, manufacturing, electricity and gas; US main source of foreign investment
PROPERTY OBSERVER: The United Kingdom, Singapore, Canada, the Netherlands and France make up the top seven.
The latest report on foreign investment showed the US recorded a $10 billion increase in approved investment to $36 billion in 2017-18, with significant increases in real estate and the*manufacturing, electricity and gas sectors.
CAAN: As Lucy Macken reveals: “Chinese real estate investment with $12.6B from mainland; $7.8B from Singapore; and $5.8B from the U.S.”
U.S. real estate investment is but a quarter of that of the Chinese!
PROPERTY OBSERVER: China was the second largest source country with a $15 billion decrease in approved proposed investment to $23 billion.
The reduction in approved Chinese investment was due to falls across all investment sectors but especially property.
Chinese proposed investment peaked at $47.3 billion in 2015–16.
Chinese investment in real estate dropped to $12.7 billion in 2017-18 from $15.3 billion the year before, though still accounted for a quarter of foreign real estate investment.
Victoria gets the greatest share of Chinese residential investment with 46% of all approvals, with NSW in a distant second with 23% followed by Queensland’s 17%.
*The data doesn’t track people who don’t need to request approval, which means NSW might be actually getting more investment.
CAAN: Obviously the “people who don’t need to request approval” are the onshore Proxy agents, Property Alliances, and Syndicates laundering the black money from China on behalf of their foreign clients in our real estate.
International Organisations including Transparency International, Financial Action Task Force (FATF), the OECD have reported that Australia is awash with money laundering in its Real Estate!
YET, as recently as October 2018 the Real Estate Sector was made EXEMPT from the Second Tranche of the Anti-Money Laundering Legislation by the Morrison Government!
VIEW: Real Estate Agents, Lawyers & Accountants Avoid Money Laundering Laws = Keeping Australian FHBs locked out …
PROPERTY OBSERVER: But it seems Melbourne retains advantages over Sydney in terms of prices and taxes.
Chinese buying is being impacted by several factors, local and international.
There’s been the unexpected cancelling of promised mortgage loans by Australian banks, plus the higher foreign stamp duty taxes, along with Chinese government capital controls making it more difficult to move money from China, suggests Carrie Law, the boss of the Chinese property portal Juwai.
“We expect Chinese buying to be flat in 2019,” Law thinks.
*I don’t think we ought regard the recent trend as permanent given tailwinds that will support Chinese buying including the still-strong Chinese wealth growth.
*There is the desire to get a bargain while the market is soft. Plus, Law suggest there is a lack of investment opportunities in China, along with a possible shift in investment from the U.S. to Australia due to any emerging trade war.
*Additionally the yuan’s weakness is not holding back investment in property as there is an advantage in currency rates in favour of Australia compared to other major countries.
The Chinese also lack appealing alternative investments at home.
CAAN: Would not these factors indicate an IMPERATIVE NEED for the FIRB to stop the sell off of Australian domestic housing? Due to these factors a Whole Cohort of Australians remain locked out of the Housing Market!
PROPERTY OBSERVER: *Interestingly, the Federal Government’s crackdown on residential properties held by foreigners in breach of the foreign investment rules uncovered just 131 now-sold illegally held properties in 2017-2018.
CAAN: It would appear the pathetic total of 131 properties found to be illegally held by foreigners is due to almost 5,000 ATO Officers having been made redundant. Therefore how effective can a Federal Government/ATO “crackdown” be?
The real numbers of foreign-owned dwellings particularly from China are concealed by the onshore PROXY buying.
PROPERTY OBSERVER: *No nationalities were advised in the figure which was up slightly from the 96 ordered forced sales in 2016-17.
There were other breaches that did not see any forced divestment.
More than half the breaches identified were residential property in Victoria, while 20% related to property in New South Wales after the Australian Taxation Office (ATO) completed around 1,400 residential real estate investigations during the year.
ATO data matching analysis is increasingly important in compliance investigations.
Data matching made up 63% of the 1,700 cases investigated in 2017–18.
Although information received from the community is a source of intelligence, only a small proportion actually involved a breach of the Act.
**The report noted that in most cases the owners of the properties reported by community members were found to be Australian citizens or permanent residents.
That suggests we might a little too quick to judge our new neighbours.
CAAN: Question why were the Nationalities concealed? Obviously “in most cases the owners of the properties … were found to be Australian citizens or permanent residents” because the onshore Proxy, family, friends, Syndicates, and Property Alliances have been set up to launder money in our Real Estate. And through various Visas following buying property tourists, students, investors, family, etc can gain a “Permanent Resident” Visa.
It would appear it has all been set up!
This has evolved over decades … dating back to the late 1990s of the Howard Government … to entice the Chinese Middle Class to invest in our Real Estate to gain “Flexible Citizenship” ..
The Chinese Communist Party (CCP), is the founding and ruling political party of the People’s Republic of China. The Communist Party is the sole governing party with 8 other subordinated parties co-existing making up the United Front!
VIEW CAAN Website to find out more in the categories of:
-Anti-Money Laundering Legislation Shelved
-Black Money …