AS At 2017: Buyers Agents, Syndicates and PROPERTY INVESTOR ALLIANCE … together Expedite the Demand for Aussie Homes

WITH the RALAN GROUP collapse perhaps we ought step back a bit … and not feel so sorry for either the Salesman or his clients … were they too greedy? The Sales Rep was there when the bonuses were handed out!

HOW many of the RALAN GROUP buyers were members of Syndicates and/or the Property Investor Alliance? This alliance partners with developers to build apartments …

They hurtled along the Gravy Train until the wheels of Ralan fell off …

RELATED ARTICLE … Chinese-Australian property investors stand to lose millions in collapse of apartment developer Ralan Group

https://caanhousinginequalitywithaussieslockedout.com/2019/09/17/chinese-australian-property-investors-stand-to-lose-millions-in-collapse-of-apartment-developer-ralan-group/?fbclid=IwAR3QzsR3mVG8zDVl7D1YNXhptpgPLPmJN7YvtwOUCMuvoyD2ZUdfwcEPGU0

IN 2017 the Property Investor Alliance (PIA) had a 7000 investor base! The PIA Clients refinanced their properties to buy more! Some PIA Investors had up to 15 apartments!

THIS is about a Ponzi Scheme that has locked out a Whole Cohort of hardworking Australians from Home Ownership!

Our Australian Families

And the best the Scomo Grubment can come up with … ‘affordable housing’ in what appears to be yet another PONZI Scheme to make our People life-long tenants in boarding houses, Build-to-Rent or Co-Living!

FOLLOWING is a compilation of articles gathered in ‘2017 CAAN Notes‘ that reveal how some within the Australian community have accumulated property portfolios and great wealth through the Housing Ponzi Scheme in this instance of Syndicates or an Investor Alliance locking out incumbents seeking to buy ‘a home’!

BUYERS AGENTS, SYNDICATES & PROPERTY INVESTOR ALLIANCE Together Expedite the Demand for Aussie Homes …

COMMUNITY ACTION ALLIANCE FOR NSW·

MONDAY, MAY 8, 2017


KEY POINTS on How Australian First Home Buyers have been locked out of the Housing Market … and What they are up against!

no laws to prevent foreign buyers purchasing land in Australia

Austrac advised Four Corners foreign investors use relatives to set up shell corporations

THE ATO advised:

no restrictions on the number of vacant land, new properties, or established dwellings for redevelopment

the Property Investor Alliance (PIA) has a 7000 investor base

-PIA clients refinance their properties to buy more; some have up to 15 apartments

Sydney house prices have risen 106 per cent since 2009

China accounts for 80pc of foreign demand

-with housing demand outstripping supply in Australia, the major component of the strong demand comes from abroad — and principally, China.

You may also want to SEARCH CAAN Website or view CAAN Facebook Notes on:

-the Daigou (onshore Proxy)

-black money … money laundering in residential property

-real estate sector exempted from Anti-Money Laundering Legislation (second tranche) October 2018; shelved for more than 12 years prior

-‘How to Effectively Market your Listings to Chinese Investors’

by Esther Yong

MAY 15, 2013

We see weekly news reports of Chinese buyers cleaning up properties in major Australia cities. Everyone is talking about these “cashed-up” Chinese buyers acquiring apartments in bulk.

But some agents and developers are asking the question, “Where can I find them? Why are they not buying from me?”

Esther Yong from acproperty.com.au guides you through the mind of the chinese buyer and how to attract more attention to your listings.

https://eliteagent.com.au/how-to-effectively-market-your-listings-to-chinese-investors/

WHY ARE CHINESE BUYERS SNAPPING UP SO MUCH AUSTRALIAN PROPERTY?

14 October 2015

As Four Corners reported on Monday, ‘The Great Wall of Money’, the number of Chinese investors buying Australian real estate is skyrocketing, surging more than 400% in the past five years. Chinese buyers are buying property, sight unseen, trusting in local agents to find them profitable investments.

But why is Australian real estate so attractive to the Chinese? Where are they hearing about it? And don’t we have laws against letting foreign buyers purchase land here?

-the price of a small house in Melbourne could be equal to that of an apartment in Beijing

-Chinese buyers also buy Australian property to house their children while they study at Australian universities

Former AUSTRAC boss John Schmidt told Four Corners that foreign investors were using relatives and setting up shell corporations to mask the real motive behind the purchases, but “they are the ones behind the scene pulling up the strings”.

An ATO spokesperson told Crikey:

“There are no restrictions on the number of vacant land, new properties, or established dwellings for redevelopment that foreign investors can receive approval to buy,” the ATO spokesperson said.

https://www.crikey.com.au/2015/10/14/why-are-chinese-buyers-snapping-up-so-much-australian-property/

ABC Four Corners: The Great Wall of Money

AUSTRALIAS NEWEST LANDLORD CHINESE INVESTOR GROUPS: PROPERTY INVESTMENT SEMINARS

MR JUSTIN WANG head of the Chinese “Property Investor Alliance”, the PIA, describes Australia’s property market as manna from heaven.

CONTRARY to the view expressed herein by Justin Wang Victoria has recently doubled its surcharge and levy for Foreign Investors; it has no qualms as with the prior increase there had been no fall in foreign investment.

IS it any wonder Australian First Home Buyers cannot get a look in with such property investor groups?

the PIA started in 2006 advising mostly middle-income Chinese migrants to buy property

7000-investor base since it started in 2006

PIA partners with developers to build apartments; to sell to clients for a fee from the developer

-PIA clients refinance their properties to buy more; some have up to 15 apartments

The Property Investors Alliance has just built its own seminar auditorium and christened it with its latest seminar on how to invest in residential property in Sydney.

Officiating at the new hall was the group’s founder and managing director Justin Wang.

The Chinese-language only presentation also had 100 people sitting outside the hall watching on a screen as Wang, who began his career as a school teacher, talked on negative gearing, asset selection, tax and how Australia’s property market was manna from heaven.

“I feel like Moses, at the top of the mountain with two tablets in my arms,” says a smiling Wang, who’s a Christian. …“But Wang says little can go wrong, even in a recession.

He believes there will always be a demand for residential property, especially in Sydney and Melbourne, mostly because of an increasing flow of migrants. This means there will be high demand, coupled with a slow planning system that means housing is scarce.

‘The [NSW] state government must be supremely confident in the Sydney property market conditions that the new surcharge, which effectively doubles stamp duty for foreign investors, will not impact the local market,’ says Justin Wang, head of Property Investor Alliance

Australia’s newest landlord: Chinese investor groups

by Su-Lin Tan

In early June, 800 people jammed into a room on a chilly night at Sydney’s Olympic Park, not for a concert or work function but something far more evangelical.

The Property Investors Alliance has just built its own seminar auditorium and christened it with its latest seminar on how to invest in residential property in Sydney. Officiating at the new hall was the group’s founder and managing director Justin Wang.

The Chinese-language only presentation also had 100 people sitting outside the hall watching on a screen as Wang, who began his career as a school teacher, talked on negative gearing, asset selection, tax and how Australia’s property market was manna from heaven.

“I feel like Moses, at the top of the mountain with two tablets in my arms,” says a smiling Wang, who’s a Christian.

The Property Investor Alliance claims to have 7000 members. Most are Chinese middle-income migrants who have invested $1 million on average in the Australian property market.

This meeting is one of hundreds of property investment seminars the group has rolled out to its 7000-investor base since it started in 2006, advising and assisting its members, mostly middle-income Chinese migrants, to buy property.

The group, which resembles a co-operative, invested $1.75 billion in residential property last year, mainly in inner western Sydney suburbs such as Burwood and Strathfield, where the average annual capital growth rate was 8 to 14 per cent, according to real estate analysts CoreLogic.

Wang estimates the average portfolio for each client is about $1 million.
He works with developers in bringing properties he thinks are suitable to members of PIA, and is then paid by the developers for each property his members buy.

Wang says he doesn’t impose any fees on his members.

However, the appetite for residential property could be tempered as state governments have moved to impose surcharges on foreign purchases, with New South Wales joining Queensland and Victoria.

In NSW this week the state government said a 4 per cent stamp duty and 0.75 per cent land tax would be applied to property bought and owned by foreign investors.

‘I challenge the government to reconsider’

The changes drew a sharp warning from Wang.

“The State Government must be supremely confident in the Sydney property market conditions that the new surcharge, which effectively doubles stamp duty for foreign investors, will not impact the local market, and that it will not impact further supply and not depress foreign investment potential in this state.

“I challenge the government to reconsider this surcharge and the timing.

Has the government forgotten the ill-advised vendor stamp duty introduced several years back, and quickly wound up? I hope that they don’t make the same mistake!

“For a healthy market to flourish, it is best not to artificially interfere with market forces of supply and demand. I call for the industry, and Government, to adopt a Taoist approach in relation to the market. Taoists let things achieve harmony on their own. By interfering, even in the name of ‘improvement’, well-intentioned efforts may actually remove a phenomenon from its natural course – and ultimately cause harm.”

One of the strongest property booms in Australian history has led to a proliferation of property investment seminars being held across hotels, many filled with free food and an army of suited consultants waiting to pounce on wannabe property buyers with the promise of almost doubling returns on a three-year investment.

‘Who’s looking after the investor?’

Wang rejects suggestions that PIA, which employs a team of 270 consultants, is in any way a “spruiker”.

His ambition is to make PIA the first “end-to-end property distribution channel”, connecting the developer to the investor while offering property market and financial advice.

“Agents just try and sell you apartments and take their commission. Some developers are so arrogant, trying to flog off their products and treat agents badly. Banks make interest. Who is looking after the investor?” he asks.

“When we sign up an investor, we teach them financials, the property market. We also investigate their budgets. We help them obtain the right finance. Then we find a good developer with the right products for them. Then we ensure they settle their purchases.”

Wang has removed clients when they have deviated from PIA’s investment approach.

PIA has relationships with Westpac and ANZ, and Wang says he is not about to jeopardise his no-default referrals to them by having a black sheep investor.

Westpac and ANZ declined to comment on its relationship with PIA on grounds of confidentiality.

Not everyone is a spruiker

Cam McLellan, a director of another property investor group, OpenCorp, agrees not everyone is a spruiker.

Industry experts with long memories recall individuals such as Henry Kaye, who headed a get-rich-quick property empire that targeted unsophisticated investors, and collapsed in 2003 owing 3500 investors up to $60 million.

“A spruiker’s seminars are always a sales pitch. You are going to be sold to and there will be ‘limited offers’,” says McLellan.

OpenCorp says it runs workshops, rather than seminars, which provide financial education to investors rather than sell properties. It makes its money finding property for clients, who engage them for a fee of 2.2 per cent of the purchase price, but does not sell properties for developers.

The company also has a $600 million apartment development pipeline in Melbourne but says it does not sell the properties direct to clients.

“To know if someone is a spruiker, you need to understand how they make their money,” says McLellan. “We make 99 per cent of ours in development and funds management, not in education.”

He adds that long-term mentoring and partnership with clients are signs of a healthy investment advisory business, especially if it teaches counter-cyclical long-term investment strategies.

Negative gearing not the key

PIA says it follows this model, only allowing its members to invest in properties commensurate with their wages. For example, a member earning $80,000 a year would not be allowed to buy property, typically an apartment, valued at more than $600,000 to $700,000. Most of the group’s investments are in Sydney’s fringes or growth areas including Homebush, Merrylands, Epping, Botany and Pagewood.

PIA partners with developers to build apartments, which it sells to clients and in return gets a fee from the developer.

“We focus on units for living only, that fulfils a renter’s basic needs. They need to be in high demand areas, just outside the CBD, with reasonable rental, access to local amenity and transport and have more than a gross yield of 3.5 per cent,” says Wang.

He doesn’t advocate negative gearing, although many properties will have a tiny negative cashflow gap in Sydney, he says. Neither does he believe in speculative investments.

“Negative gearing is a bonus, not the key to investment. If an investor makes it a purpose, it’s wrong.”

‘Financial freedom’

Clients in PIA refinance on their properties to buy more. Some of his clients, such as Johnson Ng, have up to 15 apartments. Ng was so persuaded by PIA’s investment techniques that he quit his logistics job to join PIA as a consultant.

Ng doesn’t believe Australia’s superannuation, employment rules and taxes help Australians look after their future and so PIA’s philosophy of “financial freedom” made sense to him.

He claims he makes 10 per cent a year on capital growth and about 300 to 400 per cent in return on his initial and only outlay a deposit on the first apartment – each year. Such high returns could only be achieved through leverage.

Sydney market is ‘unique’

Wang migrated to Australia from China in 1993 and felt “poor”.
“I was just surviving day to day,” he says.

He studied an MBA at the University Technology Sydney and started project marketing apartments for developers. One of his earliest sales was through developer Holdmark’s apartments in Auburn Central in Sydney’s west, which had fire safety issues in 2007.

The size of individual portfolios like Johnson Ng’s and the quality of the assets have raised eyebrows.

But Wang says little can go wrong, even in a recession. He believes there will always be a demand for residential property, especially in Sydney and Melbourne, mostly because of an increasing flow of migrants. This means there will be high demand, coupled with a slow planning system that means housing is scarce.

SOURCE: https://www.afr.com/property/australias-newest-landlord-chinese-investor-groups-20160616-gpke4g

-‘Australia A hot Pick as Chinese go online to buy Property’

China’s Fosun Group has set up an online shopping-style platform to sell overseas properties, including Australian homes, to the Chinese middle class seeking a safe haven outside of the country to protect their wealth.

Estarhome.com, the new online-to-offline service, is providing another channel, apart from ­traditional agents, for Chinese ­investors to park their money in Australian properties that are seen as safe, and smart, ­investments.

Chinese buyers already account for the vast bulk of foreign investment in Australia’s property market, overwhelmingly in new apartments. The latest report from the Foreign Investment Review Board shows about two-thirds of the $61 billion in applications during the last financial year came from Chinese nationals.

SOURCE: http://www.theaustralian.com.au/business/property/australia-a-hot-pick-as-chinese-go-online-to-buy-property/news-story/faf0d6492fc13feb87a0ccf3b6d04082

-‘Why Chinese Investors keep Buying Ausralian Property: It’s Cheap’

ANALYSIS

By finance reporter Stephen Letts

24 Mar 2017

Sydney house prices have risen 106 per cent since 2009; with Melbourne up 89 per cent… from the perspective of China’s rapidly growing millionaire class, Australian capital city properties are not only cheap, but high-yielding as well. …China accounts for 80pc of foreign demand.

Based on house-price-to-income ratios, Sydney is now the second most expensive city in the western world and Melbourne the sixth most expensive, according to Demographia’s 2017 Housing Affordability survey.

Mr Tevfik said with housing demand outstripping supply in Australia, the major component of the strong demand comes from abroad — and principally, China.

READ MORE!

2017:

Breakdown of foreign property buyers in NSW

PHOTO: Breakdown of foreign property buyers in NSW

SOURCE: http://www.abc.net.au/news/2017-03-24/why-chinese-investors-keep-buying-australian-property/8385174https://www.facebook.com/Community-Action-Alliance-for-NSW-744190798994541/?ref=aymt_homepage_panel

JUWAI.COM CONNECTING INTERNATIONAL AGENTS & CHINESE BUYERS

Juwai provides a full range of services to help agents get their properties in the right language and behind China’s Firewall.

We also get you through the right mobile and social channels, and provide the research and statistics to tailor your strategy to reach today’s massive audience of Chinese overseas property buyers.

Who We Are Juwai.com is where Chinese find international property.

Juwai, which means “home overseas”, is visited by thousands of Chinese buyers each day from over 403 cities throughout China, as well as major Chinese communities in Taiwan, Hong Kong, Malaysia and Singapore.

https://list.juwai.com/about

Search for more on Juwai and other real estate agent firms connecting international agents and Chinese buyers …

Australian Transaction Reports and Analysis Centre former boss John Schmidt said purchasing real estate, like this home in Sydney, is one of the common ways international investors launder money

Australian Transaction Reports and Analysis Centre former boss John Schmidt said purchasing real estate, like this home in Sydney, is one of the common ways international investors launder money


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