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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WEBSITE:

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GRANT THORNTON: ADMINISTRATORS: THE RALAN GROUP

GRANT THORNTON

An instinct for Growth

Grant Thornton Australia Limited

Level 17

383 Kent Street Sydney NSW 2000

T +61 2 8297 2400

To the purchaser/creditor 31 July 2019

Dear Sir/Madam

The Ralan Group Pty. Ltd. & Associated Entities (Administrators Appointed) (Collectively “the Group” refer to Schedule 1)

Your Purchase off the plan in Ruby, Sapphire or Orchid

Philip Campbell-Wilson, Graham Killer and I were appointed Joint and Several Administrators of the Group on 30 July 2019.

I refer to our corresondance of today’s date notifiying creditors of our appointment.

We have been made aware that the majority of purchasers have entered into a side agreement with Ralan Capital Investments Pty Ltd (Administrators Appointed) (“RCI”) or Ralan Arncliffe Pty Limited (“RA”) in which the deposit you paid for an apartment at either of the Group’s Orchid, Ruby and/or Sapphire developments was released either in full or mostly in full to RCI or RA as an unsecured loan.

This letter seeks to clarify some questions purchasers may have regarding their deposit paid for a future apartment and the unsecured loan they have provided to RCI / RA. We also discuss what happens if the Group is currently managing your investment property on your behalf.

Question: What is the financial position of the Group? Answer: At this early stage in the Administration, it is our initial estimate is that there is a significant deficiency owing to unsecured creditors and purchasers (who elected to release their deposit to the Group). Accordingly, it is uncertain how much, if any, of your deposit you may receive back if you had agreed to release it to RCI/ RA as an unsecured loan. Question: What has happened to my deposit paid to the Group for a future build (Ruby Tower 2, 3, 4, Sapphire and/or Orchid)?

Answer: At this initial stage, we believe that the majority, if not all, of the deposits released to RCI have been used to fund the expenses of the Group including payment of interest on unsecured loans.

The Administrators will be undertaking an investigation into the Group’s financial position to establish how these funds have been used and whether any recoveries can be made in the future that will be available to pay you back. © 2019 Grant Thornton Australia Limited.

2 If a purchaser did not elect to release their deposit, it is our understanding these funds are being held in the Group’s trust account. We will confirm this with each individual purchaser who did not elect to release their deposit in due course. Any trust funds held by the Administrators will be held on trust and dealt with appropriately.

Question: Will the deposit I paid to the Group (and then subsequently released to the Group) be taken off any settlement price when my apartment is finished and ready to be settled?

Answer: At this early stage in the Administrations, the Administrators are not in a position to provide purchasers with an answer as this will be subject to a potential sale of the developments and/or legal advice. We will update purchasers on this issue in due course.

Question: Will the Administrators continue with the build at Arncliffe, The Orchid?

Answer: The Administrators are undertaking an urgent review as to the feasibility of continuing the Arncliffe build and are in discussion with key lenders to the project. Any strategic decisions will be announced in due course including the impact for any purchasers in this project.

Question: Is it the Administrators’ intention to build Towers 2, 3 and 4 at the Ruby and the Sapphire?

Answer: At this early stage in the Administration, it is too early for the Administrators to make a strategic decision regarding undertaking and completing these projects. In all likelihood, the Administrators will be looking at potentially selling the land at Paradise Island Resort to developers / investors who may build Towers 2-4 in the future.

Question: If you sell the development to another company what will happen to my contract for Ruby 2-4 or the Sapphire?

Answer: At this stage we cannot provide a definitive answer. It will be dependent upon any sale to a developer. The Administrators will explore with any future buyer/developer their willingness to honor the purchaser’s sale contracts but this remains uncertain.

Question: If the Administrators do not complete the build the Ruby Towers 2, 3 and 4 or Sapphire, will I receive my deposit back?

Answer: Purchasers may receive their deposit back if their funds are still held in a separate trust account. However, if you agreed to release your deposit to the Group, then at this stage it is too early to determine what, if any, return you will receive as these funds were an unsecured loan to the RCI.

Question: What if Ralan is currently managing one of my investment properties in NSW. What happens to this?

Answer: This continues as normal. Your rental money from your tenant is in the trust accounts and this has not been released to the Group other than for normal management fees as agreed in your agency agreement. The net rent will be remitted to you as normal.

Question: What if Ralan is currently managing my investment property in Ruby 1 in Surfers Paradise. What happens to this? Answer This continues as normal with one exception. If you entered into a rental guarantee with the Group and there is not enough rent generated from occupancy during the month to meet the guarantee amount, you will only receive the net rental received after costs have been deducted in accordance with your letting agreement. Question: What should I do right now?

Answer We ask for your patience, whilst we undertake our investigations and efforts to look at all options for the benefit of creditors.

Should you have any queries in relation to the above please email: ralan@au.gt.com

Yours faithfully

Said Jahani Joint and Several Administrator

Schedule 1 – The Ralan Group Pty Ltd Associated Entities

Name ACN

Garryspillane Pty Ltd 617 899 671

Menufeast Pty Limited 120 005 996

Ralan (Culworth) Pty Ltd 132 108 322

Ralan 888 Pty Ltd 151 868 432

Ralan Arncliffe Pty Ltd 159 766 757

Ralan Beaconsfield Pty Ltd 162 589 620

Ralan Boundary Street Pty Ltd 165 480 240

Ralan Budds Beach Holdings Pty Ltd 604 082 297

Ralan Budds Beach No.1 Pty Ltd 604 085 663

Ralan Budds Beach No.2 Pty Ltd 604 083 374

Ralan Budds Beach No.3 Pty Ltd 604 083 570

Ralan Burwood Pty Limited 133 423 515

Ralan Capital Investment Pty Ltd 603 501 444

Ralan Cecil Street Pty Ltd 165 117 251

Ralan Cherry Street Pty Ltd 139 868 107

Ralan Constructions Pty Ltd 168 014 042

Ralan Corona Pty Ltd 142 364 618

Ralan Culworth No.2 Pty. Limited 145 045 772

Ralan Developments No.2 Pty Ltd 160 017 998

Ralan Developments Pty. Limited 100 473 818

Ralan Duff Street Pty Ltd 142 777 839

Ralan Dumaresq No.2 Pty Ltd 156 522 628

Ralan Dumaresq Pty Ltd 139 594 095

Ralan Eulbertie Pty Ltd 137 137 190

Ralan Gordon Pty Ltd 146 125 322

Ralan Holdings Pty Limited 145 689 809

Ralan Killara Pty Ltd 147 567 931

Ralan Lamond Pty Ltd 166 904 589

Ralan Marian Pty Ltd 138 455 357

Ralan Mascot Pty. Limited 150 148 842

Ralan McIntyre Pty Ltd 138 228 761

Ralan Merriwa Pty Ltd 138 241 531

Ralan Mortgage Corporation Pty. Limited 092 259 713

Ralan Nominees Pty Limited 100 486 191

Ralan Ocean Avenue Holdings Pty Ltd 607 291 896

Ralan Ocean Avenue No.1 Pty Ltd 607 292 535

Ralan Ocean Avenue No.2 Pty Ltd 607 292 759

Ralan Ocean Avenue No.3 Pty Ltd 607 292 928

Ralan Paradise No.1 Pty Ltd 602 658 211

Ralan Paradise Holdings Pty Ltd 602 655 649

Ralan Paradise No.2 Pty Ltd 602 658 793

Ralan Paradise No.3 Pty Ltd 602 659 138

Ralan Paradise No.4 Pty Ltd 602 659 441

Ralan Paradise Resort Pty Ltd 602 658 346

Ralan Property Care Pty Ltd 135 835 595

Ralan Property Services Pty. Limited 087 265 834

Ralan Property Services QLD Pty Ltd 603 015 096

Ralan Pymble Pty Ltd 140 987 382

Ralan Rhodes Pty Ltd 152 092 361

Ralan Rosebery Pty Ltd 164 210 100

Ralan Ruby No.2 Pty Ltd 161 317 460

Ralan Ruby Pty Limited 145 768 912

Ralan St Leonards Pty Ltd 147 661 345

Ralan Warrangi Pty Ltd 146 605 503

Ruby Apartments Pty Ltd 624 312 812

Ruby Collection Management Pty Ltd 624 312 947

Ruby GC Holdings Pty Ltd 624 311 520

The Ralan Group Pty. Ltd. 083 193 226

SOURCE: https://www.grantthornton.com.au/globalassets/1.-member-firms/australian-website/creditors-documents/gtal_2019_ralan_purchasers-20190731.pdf?fbclid=IwAR0xmUDELcAg8EdKiR1o2I0iNYLZeuSzftyUdibmpzsEuAI2U2r3jfDaLk8

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

ALL we can say is …

IS this another example of greed going bad?

IS this a case of ‘serves you right’ for getting on the band-wagon and going for a bag-full of dosh, and to hell with the risks involved?

IS this about upholding a scheme that by its very nature is unsustainable?

IS this about trying to look like victims when it goes pear-shaped, but in fact it was really about exploitation of opportunities?

How true is it?


-reference to ‘Chinese Australian’ buyers … where is this coming from, is it so?

-are we supposed to feel sorry for this salesman? He was there for sure when the bonuses were handed out!

A PONZI Scheme that has locked out a Whole Cohort of Australians from Home Ownership!

Give us all a break, we aren’t all that stupid …


-it’s another example of the gravy train hurtling along and sweeping up those seeking and enjoying the ride until the wheels fall off! COULD it be that a large number of these investors were members of the Property Investor Alliance (PIA) which a couple of years ago had a 7000 investor base? PIA clients refinance their properties to buy more; some had up to 15 apartments.

VIEW CAAN NOTES:


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

7.30 By Pat McGrath and Kyle Taylor, ABC Investigations

17 SEPTEMBER 2019

Man with black hair and white collared shirt stares directly into camera

PHOTO: Former Ralan salesman Stanley Xie. (ABC News: Jerry Rickard)

Stanley Xie feels angry and frustrated. Most of all, he feels a sense of guilt.

Key points:

  • Property developer Ralan Group’s collapse has left thousands of investors facing financial ruin
  • Many investors were Chinese-Australian who stand to lose millions on apartment projects — some of which were never built or finished
  • The case has raised concerns about the role of legally questionable financing of off-the-plan developments across the industry

“Because of me, they lost their money,” he said.

“Because of my sales, because I pushed, Because I allowed such a tragedy to happen.”

Mr Xie was a salesman with the property developer giant Ralan Group prior to its spectacular financial collapse that has left thousands of investors in its wake.

As a Ralan salesman, Mr Xie’s job was to spruik a form of property investment the company’s administrator now says was legally questionable.

He is speaking out about what he saw at the property behemoth in the hope it will help the 2,300 investors who have watched almost $300 million worth of deposits in off-the-plan apartments vanish.

“This is a big tragedy because for many of the clients, their money was not easy to make,” he said.

More to collapse than just a bad market

Man in suit grinning shakes hand of large costume bear in hotel foyer

PHOTO: Ralan director William O’Dwyer at the 2018 launch of the Ruby Apartments on the Gold Coast. (YouTube)

When Ralan Group went into administration in July with debts of $500 million and five unfinished projects, its demise was seen by some as a symptom of the downturn in Australia’s apartment market.

But there is a more complex side to this massive corporate collapse.

The ABC has obtained contracts that show Ralan was asking homebuyers to release their deposits as extremely risky loans to the company in return for 15 per cent annual interest.

Because the loans were not secured to Ralan’s assets, investors who agreed to release their deposits to the company are unlikely to get any of their money back now it has collapsed.

Accounts released by the administrator reveal only a fraction of investors’ deposits remain in trust accounts set up for each development — the rest is believed to have been spent on Ralan’s business costs and paying off previous investors’ interest.

The case has raised concerns about this method of financing off-the-plan developments being used across the industry.

Man wearing glasses, blue suit and striped tie stands in city street with people walking past and cars parked nearby

PHOTO: Said Jahani from Grant Thornton said there were concerns around the manner in which Ralan raised money for its projects. (ABC News: David Maguire)

Said Jahani from administrator Grant Thornton said Ralan could be referred to the Australian Securities and Investments Commission for investigation into whether the loans are in breach of laws designed to protect investors.

“Once you start raising money beyond 20 people, you need to have licenses from ASIC, you need to follow strict protocols in terms of how you produce documents, like a product disclosure statement. None of that was actually done by Ralan,” he said.

Mr Jahani is now digging through the Ralan’s financial records to find out how long the 21-year-old company has been tapping investors for cash.

“From what we can tell, they’ve been doing this right from the beginning,” he said.

“That created a massive flow of funds into Ralan. As long as they kept developing the next project, they always had the next presale going and allowing that to then continue to fund the working capital for the business.”

Got a confidential news tip?

  • Email ABC Investigations at investigations@abc.net.au

For more sensitive information:

  • Text message Pat McGrath using the Signal app on +61 416 278 149
  • Text message the ABC Investigations team using the Signal app +61 436 369 072

No system is 100 per cent secure, but the Signal app can be used to protect your identity by using end-to-end encryption. Please read the terms and conditions of the app to work out if it is the best method of communication for you.

The Ralan Group’s founder and sole director William O’Dwyer has declined interview requests. Through his lawyers, he said he deeply regrets the stress and anxiety caused to creditors.

“We stress that any negative publicity in relation to our client and the Ralan Group could jeopardise any rescue or restructure proposal,” his lawyer said in an email.

The company’s immediate future is being led by the administrators and receivers appointed by Ralan’s major lenders, including Westpac and the boutique financier Wingate.

Both lenders deny any knowledge of the investor loan agreements, however they are now facing the threat of at least three separate class actions being investigated on behalf of investors who say Westpac and Wingate have profited from their losses.

Man with glasses and blue jumper stands outside large home with gate and trees behind him.

PHOTO: William O’Dwyer would not answer specific questions when approached directly by the ABC. (ABC 7.30)

When approached in person by the ABC, Mr O’Dwyer said he was “working vigorously with the administrator” but refused to answer specific questions.

Chinese-Australian investors targeted

Man with glasses and black shirt next to older man in cream shirt, sitting at dining table with papers scattered in front.

PHOTO: Ralan investors Aaron Huang and his father Ben are set to lose hundreds of thousands of dollars. (ABC News: Kyle Taylor)

There is another side to Ralan’s model.

Most investors caught up in the collapse are Chinese-Australians who were targeted by Ralan’s team of Mandarin and Cantonese salespeople.

Former bus driver Ben Huang and his family invested $350,000 in two off-the-plan apartments after receiving an unsolicited phone call from a Ralan salesperson in 2013.

“At that time, I wanted to help my son get into the market,” he said.

Because he agreed to release his deposits as loans to the company, Mr Huang now stands to lose the lot.

His son Aaron, who personally contributed $40,000 to the investment, said the collapse was a financial disaster for his parents.

“We’re losing sleep because of this, because we literally lost all our money,” he said.

Man with black hair and white collared shirt stares to left of camera

PHOTO: Stanley Xie said he specifically targeted people with Chinese names and encouraged them to become Ralan investors. (ABC News: Jerry Rickard)

When Mr Xie was a salesman for Ralan Group, he came up with a simple method for finding new customers.

He would open the Sydney White Pages and start trawling for Chinese names.

“For example, my surname Xie. Or Wong. Or Chen,” he said.

He said some of his clients were experienced investors, while others were putting money into property for the first time.

“I had a taxi driver, a chef, even a cleaner,” he said.

Mr Xie, who said he had no role in formulating contracts for clients, also used his networks within Sydney’s Chinese community to find investors.

Man wearing high-vis vest and blue collared shirt, standing arms crossed in a warehouse with large steel behind him.

PHOTO: Ralan investor Leon Chen. (ABC News: Kyle Taylor)

He met small business owner Leon Chen through a community group and in 2013 convinced him to invest $250,000 in two units.

“It’s a disaster,” Mr Chen said.

“I am young and I can still come back from it, compared to the older retired people. They probably invested in this to try to get some more income to support their life, but now they’ve lost everything.”

The ABC has spoken to several Ralan investors who were referred to the company through friends or relatives.

Mr Chen convinced members of his extended family in China to invest with the company.

“They just trust me, and now I’ve lost my trust. What can I say to them?”

Mr Chen is among about 300 investors who have registered their interest in a class action law suit being investigated by Sydney lawyer Matthew Bransgrove.

Man wearing suit and white shirt stands in front of fence with construction site in background.

PHOTO: Lawyer Matthew Bransgrove is investigating a potential class action law suit on behalf of Ralan investors. (ABC News: Ilias Bakalla)

“A lot of them are in shock,” Mr Bransgrove said.

“I spoke to a woman who invested $4 million of her superannuation and her family’s superannuation money and she was too ashamed to tell her family that it was all gone.”

Mr Bransgrove said the class action would likely focus on Westpac and Wingate.

“If the evidence shows that Westpac and Wingate know that this was going on, then it’s a very strong case,” he said.

Man wearing blue chequered suit and glasses

PHOTO: Ralan director William O’Dwyer. (Facebook: Ruby Collection)

The ABC understands law firms Williams Roberts and Chambers Russell have also been looking into class actions.

In a statement, Wingate said it did not know of the lending arrangements Ralan reached with purchasers.

“Wingate’s finance documents prohibited Ralan from entering such arrangements,” the statement said.

“Wingate strongly rejects any suggestion that Wingate was anything other than a secured lender to Ralan’s development projects.”

Westpac declined to comment in detail because of “customer confidentiality.”

“At the time the Ralan Group went into administration, Westpac’s major financial exposure was the development of a complex in NSW,” the bank said in statement.

That complex is a 318-unit apartment building in the Sydney suburb of Arncliffe, which the administrator has said is about 60 per cent complete.

The bulk of the buyers caught up in Ralan’s collapse had put deposits on apartments in Ralan’s four upcoming developments on the Gold Coast

In November last year, the company completed the first stage of the four-tower Ruby Collection of buildings in Surfers Paradise.

Construction has yet to begin on stages two, three and four, as well as the nearby 673-unit Sapphire development.

Watch the full story on ABC 7.30 tonight

SOURCE: https://www.abc.net.au/news/2019-09-17/property-developer-collapse-sees-investors-facing-huge-losses/11492920

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SYDNEY COUNCILS PUSH TO PROTECT SUBURBS FROM HIGH-RISE APARTMENTS

GOOD but … DEVE-LOPERS … their appetite whet from 2012 to date … the fact we don’t have ‘the water’ is not apparent to this ‘lot’ …

WHERE do you figure the 725,000 GSC new homes forecast comes from? Who will they be for? This proposal from ‘the lot’ with an 85% defect build record … as much as 97% defective builds …

THE Solution for inadequate infrastructure, angry Constituents, the loss of local neighbourhood character, heritage, urban bushlands; and overdevelopment would be to disband the FIRB to stop the 100% sell-off overseas, and black money awash in our Real Estate … the high migrant and vibrant numbers would soon fall …

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SYDNEY COUNCILS push to protect suburbs from high-rise apartments

Megan Gorrey
By Megan Gorrey

September 15, 2019

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Sydney councils have seized on a shake-up of the planning system to fight back against high-rise development, as they attempt to prevent apartment blocks encroaching into established suburbs.

But developer groups are pushing for a more radical break with the status quo, urging councils to use a new planning policy to rethink the shape and form of development in their suburbs.

New plans being prepared for the first time by local councils will help shape Sydney's suburbs over the next two decades.
New plans being prepared for the first time by local councils will help shape Sydney’s suburbs over the next two decades. CREDIT:WOLTER PEETERS

For the first time, Planning and Public Spaces Minister Rob Stokes is requiring each NSW council to prepare a local strategic planning statement that will guide development for the next two decades.

The plans must elaborate on the council’s “20-year vision for land use in the local area, the special character and values that are to be preserved and how change will be managed into the future”.

Those statements will inform the laws that govern the type of development allowed in particular areas, known as local environment plans or LEPs. They will also guide the provision of new homes to meet housing targets set by the state government.

About a dozen Sydney councils have released their draft documents for public exhibition before the October 1 deadline.

Many councils across Sydney want to preserve the character of their established suburbs.
Many councils across Sydney want to preserve the character of their established suburbs.CREDIT:JAMES ALCOCK

Mr Stokes said the councils’ plans would “reduce ad hoc decision-making” and help ensure that planning changes to Sydney’s suburbs were “foreseen, predictable and supported”.

However, the chief executive of developer lobby group Urban Taskforce, Chris Johnson, said he was “a bit worried about the [statements] because they set the tone for the LEPs“.

“Even though some of the statements are relatively general, they can be used to legitimise that next stage,” Mr Johnson said.

The plans have revealed some common ambitions across councils. These include the retention of pockets of green space, infrastructure that keeps pace with population growth, homes that are close to public transport, and preservation of the “local character” of suburban areas.

The City of Canada Bay Council said residents want low density areas to remain “substantially unchanged”, while development should be located near public transport hubs and reflect the character of the surrounding neighbourhood.

The City of Ryde said population growth had “put pressure on the unique local character of our buildings, heritage and natural areas”.

The Hills Shire council said the public was concerned about “our growth and changes to residents’ lives, the increasing difficulty in moving around and changing urban environments“, including built-up precincts around new train stations.

In the City of Sydney, residents wanted walkable neighbourhoods and infrastructure that matched the level of growth and development.

Mr Johnson was worried some of the statements would not allow for enough development to meet the Greater Sydney Commission’s forecast need for 725,000 new homes over the next 20 years.

That meant making the most of new transport hubs to build higher-density developments in those areas – a move that could mean fewer unit blocks in established suburbs, he said.

He said the City of Canada Bay’s draft statement, for instance, showed medium density terrace houses, rather than high-rises, around existing train stations and potential future metro train stops.

“You want to protect the suburban areas but make sure you get decent density and height in the town centre and near train stations. If you don’t do that, you’ll have to see changes in the suburbs.”

The executive director of the Property Council of Australia’s NSW branch, Jane Fitzgerald, said council planning strategies that “reflect the status quo” would not help meet housing needs.

RELATED

Sydney population

As Sydney grows, the challenge of housing an extra 1.3 million people is upon us

Mr Stokes is pushing for councils to remake their LEPs more regularly, in an attempt to reduce reliance on the so-called spot rezoning processes used by developers or landowners to propose projects exceeding local planning rules.

He said a strategy-led system that “took the surprise out of planning that comes with ad-hoc decision-making”.

“We’re working with councils to ensure this strategic planning happens at a local level through their local strategic planning statements.”

Sydney councils are required to have their local strategic planning statement in place by April 2020.

Megan Gorrey
Megan Gorrey

Megan Gorrey is the Urban Affairs reporter at the Sydney Morning Herald.

SOURCE: https://www.smh.com.au/national/nsw/sydney-councils-push-to-protect-suburbs-from-high-rise-apartments-20190909-p52pha.html#comments

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RYDE COUNCIL PLACE ‘INAPPROPRIATE DEVELOPMENT’ REFORMS FOR CONSULTATION

Ryde Council place ‘inappropriate development’ reforms for consultation

Years of over-development have many north western Sydney residents asking for council intervention. Now Ryde Council is asking residents what they think of their latest planning reforms.

John Besley, Northern District Times

September 13, 2019

Reforms out for public consultation may put the brakes on the over-development and destruction of heritage homes in Ryde. Picture: Toby Zerna
Reforms out for public consultation may put the brakes on the over-development and destruction of heritage homes in Ryde. Picture: Toby Zerna

Ryde Council has officially commenced community consultation on a series of planning reforms aimed at protecting local items and areas of heritage significance from inappropriate development.

The proposed reforms follow a comprehensive heritage review commissioned by the council which found that more needed to be done to protect the heritage and character of the area.

Forty-four new heritage items will be established in Ryde under the reforms, including 30 properties, seven public parks and one public school.

Six new heritage conservation areas will also be created. These include Wharf Rd, Gladesville,

Lunds Estate, Eastwood and Darvall Estate, Denistone.

Halvorsen's Neutral Bay boat shed 1935 Picture: Supplied
Halvorsen’s Neutral Bay boat shed 1935 Picture: Supplied

Meanwhile the former Squire’s Brewery and Halvorsen’s Boat Yard in Putney and the Glades Bay Baths in Gladesville will also be listed as archaeological sites.

Heritage items are provided with protections guarding them from inappropriate development as new works are required to be sympathetic to the character and style of the item or conservation area.

Historical photos of Halvorsen's boat shed and James Squire brewery.
Historical photos of Halvorsen’s boat shed and James Squire brewery.

Ryde council will be conducting six drop-in sessions as part of the community consultation with the first of these taking place 6pm Thursday, September 19 at Gladesville Library.

The consultation period will run until Friday, October 25.

Ryde mayor Jerome Laxale encouraged all local residents to have their say on the proposed reforms.

Ryde Labor Mayor Jerome Laxale.
Ryde Labor Mayor Jerome Laxale.

“Heritage items, whether they are homes, shops, schools, parks or even entire streets, enrich our city and contribute to the community’s sense of place,” Mr Laxale said.

“We know through our engagement with the community that heritage is of vital importance to the majority of residentsmany of whom have expressed concerns about the recent increase in development proposals that involved the demolition of buildings with heritage value.

“Conversely, there have also been concerns raised that property owners have no certainty under current planning controls. The proposed planning reforms address these concerns and that is why it is so important that everyone takes part in the consultation that has just commenced.”

For more information, visit ryde.nsw.gov.au

SOURCE: https://www.dailytelegraph.com.au/newslocal/northern-district-times/ryde-council-place-inappropriate-development-reforms-for-consultation/news-story/78d09d3890ba5292d03d73550fed1dba?fbclid=IwAR1Tth-29DH85ooX6o4FJAx9kWfeHA10WNKgqrWivh7kYb9ywcRc1Vo1OBc

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SYDNEY TOWARDS 2030 P.NZI

WHY was there a suburban revolt against the Medium-Density Housing Code? Cough … cough …

AFTER we saw the high-rise Precincts flogged off overseas … we knew what the “SYDNEY is growing” was all about …

Our Heritage Homes demolished for ‘new homes’ for Visa holders …

Our Urban Bushlands, flora and fauna chopped for more ‘new homes’ … Yet this was not enough for deve-lopers?

SYDNEY had a high level of home ownership … with a detached cottage on a block of land … for decades …

Yet this has been eroded in the short term since 2011 to date … by increased overseas competition for our domestic housing …

AND inflated cost of land with lots as little as 200M2 X 6M wide!

MEANWHILE despite the ‘defective Apartment crisis’ their lobbyists are pushing back for more high-rise OVERDEVELOPMENT … because storey upon storey they make a motza …

IT’s obvious why the INFLUX of international students has led to a lowering of standards whereby they pay $100s p.w. to share a bedroom with more than four other people

PENALTIES should be enforced!

THE HOUSING PONZI SCHEME was contrived by the Big End of Town …

DO they happen to live in Hunters Hill, Mosman and Woolahra … Point Piper and Vaucluse?

MAINTAIN the rage Sydney … demand a stop to VISA Manipulation … and Black Money awash in Our Real Estate …

Save $600 boycott the SMH Summit

SYDNEY TOWARDS 2030

Sydney’s moment of truth

In a decade, Sydney will be home to an extra 1.3 million people. How we accommodate them is causing angst in our suburbs and presents a huge challenge to government.

SEPTEMBER 9, 2019

NATASSIA CHRYSANTHOS

2016 2021 2026 2031

Population 4,609,642

Waterloo is Sydney’s most populated suburban area, with nearly 35,200 residents. It has overtaken Mosman, which in 2011 had the highest number of people, with almost 29,400 residents.

2016 2021 2026 2031

Population 5,029,782

Newington and Kellyville are projected to house more residents, moving past Rhodes.

2016 2021 2026 2031

Population 5,458,272

CamdenCobbity and Leppington’s populations are set to double from five years prior.

2016 2021 2026 2031

Population: 5,878,238

Kellyville and the corridor from Homebush to Camellia are projected to house more residents than any other parts of Sydney.

A dozen cranes branch into the sky where tenants Bri Voto and Jason Martin look out from their front porch. Their yard spills onto an empty block that touches James Ruse Drive, near where the highway crosses the Parramatta River. A plank forms a makeshift bridge over the railway at Camellia station behind them – Sydney’s least visited train station – and leads to their house, the lone residence among 320 hectares of industrial land.

If the house is still standing in 10 years, it will likely be among unrecognisable surroundings and 8000 people. A new Camellia town centre will eventually service 10,000 households and provide jobs for 5000, planning documents say. There will be a new primary school, light rail stop and two 40-storey towers, with more in Parramatta to the west and Olympic Park to the east.

Waiting on the neighbours: Bri Voto and her lone house in Camellia.

Sydney’s planners envisage its future as a metropolis of three cities, where everyone can reach jobs in the CBD, Parramatta or the western city in half an hour. The hope is that high-rise development will cluster around new transport links, themselves knitted together by a green grid of bike lanes and pathways.

But if planners are painting a rosy picture, demographers are more sceptical. Will we instead be restricted to poorly built shoeboxes, resenting hour-long traffic queues and our more stratified city?

“Whichever way you cut demographically – whether by money, age or cultural diversity – it’s leading to a more segregated city,” says Dr Somwrita Sarkar, a researcher from the University of Sydney’s urban housing lab.

“I couldn’t think of anything worse than trying to raise a child in a shoebox.”

Camellia resident Bri Voto

Sydney’s population will be 5,878,238 by 2031, projections say, with half a million new dwellings needed by then.

“Six or seven million people is not really a very large number by world standards,” Dr Sarkar says. “But when we look at where people live, where people travel and how development is being coordinated, we’re creating this mismatch and imbalances in the system.”

Our slowest growing areas will be among the fastest ageing, even though they’re closest to the CBD and lucrative employment. The north-west and south-west will evolve fastest, places such as in Kellyville and Camden, when new housing springs up along transport corridors for young families and immigrant populations priced out of the inner city.

VIDEO: Evolving quickly: New development has risen at Kellyville, home to a new Metro station. VIDEO: NICK MOIR/TAYLOR DENNY

Of the near-1.3 million new people living in Sydney by 2030, two-thirds will settle west of Parramatta. But Transport for NSW predicts more new jobs will be created in the CBD than anywhere else.

“We need options which ensure we’re not segregating the city into rich areas and poor areas. A diversity of housing and financing options that encourage more mixing of people are most desirable, because then it’s intergenerational,” Dr Sarkar says.

Will we fill the ‘missing middle’?

*Planning Minister Rob Stokes has warned Sydney will become divided both spatially and socially, unless its need for lower density attached housing is met. But a suburban revolt against Mr Stokes’ medium-density code casts doubt over this vision.

The president of the Planning Institute of Australia, Steve O’Connor, says Sydney’s attachment to the Australian dream means it is yet to take full advantage of medium-density solutions, such as villas and townhouses, in its middle rings.

The need for new housing types will be spurred by our ageing population. Canterbury-Bankstown, Blacktown and Parramatta will host the most residents over 60 in 2031, corresponding to population size.

However the areas home to the highest proportion of people over 60 will be Hunters Hill (35 per cent), Mosman (29 per cent) and Woollahra (22 per cent). These are also projected to have the highest levels of lone person households (30 per cent), compared to their proportion of family households.

Sydney projected dwelling requirements for 2031

FOR MAP VIEW SOURCE LINK BELOW

“The suburban development, with a detached house on a block of land and nice backyard for the kids to kick the ball around, is only going to satisfy about a third of the population’s needs in future,” Mr O’Connor says.

A successful transition will require political grit. Sydney’s increasing density has so far created conflict in established communities that don’t want densification in their neighbourhood. They might not have much choice.

“We’ve got housing stress for people who, 30 years ago, would have been well-off.”

Mark Degotardi, CEO of the Community Housing Industry Association NSW

“There’s a desire for smaller households, living closer to employment and commuting less,” Mr O’Connor says. “People with big backyards will take advantage of being able to accommodate another dwelling in the backyard. Where there are three houses there might be eight townhouses developed on the same area.

“Perhaps local residents won’t like it, but that’s the more sustainable way to proceed. ‘It’s always been this way and we want to keep it this way’ – I’m afraid that line of argument just isn’t founded.”

But pushback from both sides of the ‘missing middle’ debate means there’s no guarantee we’ll take this route: developers’ interest in high-density blocks and spot rezoning will be there in 2030 regardless of what planners see as sustainable.

Digital disruption and its limits

Technological disruption and the sharing economy will be “huge” factors shaping housing options in the next 10 years, Mr O’Connor says. Autonomous vehicles and car sharing could make parking stations redundant and free up swathes of inner city land.

“That can be re-allocated for other uses, and it could be affordable housing,” he says. But Dr Sarkar says peer-to-peer interaction opens opportunities for exploitation as well as efficiency. It’s happening today: in apartments around Sydney’s city, international students are paying hundreds per week to share a bedroom with more than four other people.

Gumtree and flatmates.com are enabling behaviours to respond to affordability stress faster than policy can. While the City of Sydney has attempted a crackdown, students can only afford to accept unsafe and unhygienic conditions.

A bed in a bathroom of an illegal accommodation in the Sydney CBD SOURCE: CITY OF SYDNEY

“There would be 10 students living in a two-bedroom apartment, saying ‘our landlord doesn’t allow us to cook because even in the kitchen there are a couple of mattresses’,” Dr Sarkar says.

Such sharing is not restricted to the CBD. “Even in the Parramatta area it’s not uncommon for young professionals to arrive from a place like India and live two families in a two-bedroom apartment,” Dr Sarkar says. “And we’re not talking about 20-year-olds here, but people in their 30s.”

Who can afford to live in Sydney?

People on social housing waiting lists today might finally reach the top of the list by 2030.

Sydney has a shortfall of 80,800 social housing dwellings and 55,300 affordable rental homes. By 2036 this is projected to blow out to 141,000 for social housing and 75,800 for affordable homes.

Mark Degotardi, CEO of the Community Housing Industry Association NSW, says the social housing waiting time in most local government areas is now a decade. “The notion you can wait for 10 years while you’re in that income stress is not realistic,” Mr Degotardi says.

While families were once the predominant group accessing social housing, the numbers of single occupant households and tenants over 55 have increased significantly.

Some changes are afoot: the state government’s Communities Plus redevelopments of housing in Telopea, Arncliffe, Waterloo and Ivanhoe, and new sites in Redfern and Villawood, will deliver thousands of new homes in the next 15-20 years better suited to tenants’ needs.

Creeping affordability stress warns of worse to come.

“Population growth is going to affect people throughout the housing spectrum,” Mr Degotardi says. “We’ve got housing stress for people who, 30 years ago, would have been well-off. Key workers – police, firies, teachers, nurses – aren’t able to live within proximity to where they’re needed.”

‘I couldn’t think of anything worse than trying to raise a child in a shoebox’: Bri Voto at her home in Camellia. PHOTO: JAMES BRICKWOOD

Bri Voto, 21, moved to Sydney from the Gold Coast six months ago. She works at Rosehill racecourse and earns more money since moving, “but the extra I get each week is poured into overpriced rent, tolls and living expenses”, she says.

“Sydney has the most beautiful landscapes and nearly has everything to offer. I wish I could say everything was right at your doorstep, but having to constantly travel makes it hard to settle.”

Will she still be here in 2030? “It’s a no-brainer really, if I found something affordable in Sydney I’d hope to stay. But I couldn’t think of anything worse than trying to raise a child in a shoebox.”

Explore how your neighbourhood will grow

Enter a place

(View Source Link to access)

2016 2021 2026 2031

Sydney Council Population 175176

Sydney CBD Wynyard Station George St

Total Population 6

© Mapbox© OpenStreetMapImprove this map

Pan & Zoom

About the Data +Interactive: RICHARD LAMA, MARK STEHLE

The Sydney Morning Herald is hosting a population summit on September 23. For more details and to view the list of speakers click here.

In a decade Sydney will grow by 1.3 million people. Where will they live?

SOURCE: https://www.smh.com.au/interactive/2019/sydney2030/population/

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M.grant Crush Overloads Western Sydney

Migrant crush overloads Western Sydney

By Unconventional Economist in Australian Economy

September 9, 2019 | 15 comments

The Weekend SMH ran an interesting article on how Western Sydney has borne the brunt of Sydney’s breakneck population growth, driven by mass immigration:

Greater Sydney’s population rose by 1.13 million between 2001 and 2018… Just five regions Parramatta, the city and inner south, inner south-west, south-west and Blacktown – accounted for 55 per cent of that increase or 617,000 people

The Parramatta district added 146,000 people between 2001 and 2018, more than any other region and eight times the Sutherland district’s increase, which was the smallest over that period…

The analysis showed the distribution of population across the 15 regions is now much more uneven than in 2001…

For nurse Erin Coggins, the diversity of Parramatta is one of the area’s major drawcards… But while she is happy to see the area grow, Mrs Coggins worries about population growth in Parramatta reaching a tipping point.

“I do think the western suburbs are at risk of being abused a bit in terms of overdevelopment because people don’t stand up to it as much as in affluent areas”…

Parramatta, the fastest growing statistical area, had the lowest share of residents born in Australia at 44 per cent, the 2016 census showed…

Strong population growth has not necessarily correlated with strong economic performance.

Average annual growth in the Parramatta region between 2013 and 2018 was 2.6 per cent, the second-lowest in the city, despite having the highest rate of population growth since 2001.

The population imbalance is only going to grow, with the State Government projecting that Parramatta the rest of Western Sydney will take the lion’s share of future population growth (read immigration):

CAAN: View the photos below depicting the growth in RYDE … No 8 in percentage increase in the above photo! Roads are in gridlock in Ryde including Ryde/Lane Cove Road, Victoria Road, Epping Road with ratruns! Schools, hospitals, trains, buses are all full up. The local communities have been robbed of their rights, amenity, heritage, neighbourhood character, communities and environment for overdevelopment!

Massive high-rise precints at Macquarie Park, Top Ryde, North Ryde, Gladesville, Meadowbank … it is underway in Gladesville, West Ryde and neighbouring Melrose Park, Rhodes and Wentworth Point.

Image may contain: sky, tree and outdoor

CAAN Photo: one section of Meadowbank!

Image may contain: sky, skyscraper, car and outdoor

CAAN Photo: Lachlan’s Line, Macquarie Park opposite the North Ryde Station Precinct

Image may contain: sky, skyscraper, tree and outdoor

CAAN Photo: Herring Road Precinct, Macquarie Park; comparable redevelopment now underway on the opposite side of Herring Road

Image may contain: sky, tree, skyscraper, cloud, plant and outdoor

CAAN Photo: Icon Waterloo Road, Macquarie Park

Image may contain: sky, skyscraper, tree, cloud and outdoor

CAAN Photo: JQZ Prime, Waterloo Road. A Precinct within a Precinct!

IF aerial photos were taken of the Electorate … it would be frightening! Massive high-rise, high density development … radiating out from the Chinese City of Chatswood built on CCP Money!

From GeoPolitical Strategist, David Lee:

‘This city has happened out of nowhere … massive high-rises … it looks like Hong Kong … it’s a city being built ostensibly with China’s money …

https://caanhousinginequalitywithaussieslockedout.com/2019/09/01/a-geopolitical-strategist-on-the-mk-hong-kong-the-u-s-and-australia/?fbclid=IwAR10lD12mz0OZPkHTJtR2qjV-9XsPZPg5c8M86-348dp5zLJy9aZZWoOdXQ

MACRO BUSINESS:

As MB keeps saying, Sydney is facing a situation where only the wealthier residents living primarily on the eastern side of Sydney will be able to afford a house with good amenity, while the working class and migrants will either be stuffed into apartments or forced to live on a postage-stamped sized lot miles from adequate services and infrastructure.

This is economic apartheid and class warfare writ large.

A dystopian future awaits Western Sydney residents under Australia’s mass immigration ‘Big Australia’ policy.

SOURCE: https://www.macrobusiness.com.au/2019/09/migrant-crush-overloads-western-sydney/

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DEVELOPERS summon First Home Buyer patsies

FOLLOWING two evacuations, AND Revelations about deficient waterproofing, fire protections, combustible cladding and more, the Lambert and Shergold Weir Reports, Engineers Australia Report on 85% defective apartments on completion and more … do you suppose this Lobby are desperate to reflate their property bubble?

THERE is a far better solution to Affordable Housing for Australians aspiring to own their own home … and there’s no Developer!

View!

https://caanhousinginequalitywithaussieslockedout.com/2019/09/08/re-imagining-the-block-part-one/?fbclid=IwAR29GGr_6XBRlx6aaxvrry1623KIHKbxLrjn2VEcn-H8fcAftyZkm6DC_8g

Developers summon first home buyer patsies

By Unconventional Economist in Australian Property

September 9, 2019 | 16 comments

Desperate to reflate the East Coast property bubble, developers have started offering first home buyers (FHB) vendor financing, with plans to link it with the Federal Government’s announced FHB loan subsidy scheme for 10,000 applicants a year:

The family behind the Melbourne-based Simonds, along with a handful of other wealthy building families, have already put $300 million into a scheme, modelled partly on WA’s successful Keystart program, to fund 3 per cent of the loan needed for a qualifying purchase, to help buyers who would otherwise struggle to raise the typical 20 per cent needed for a deposit.

The Simonds scheme has not yet started, but its backers have already been talking to Housing Minister Michael Sukkar about linking the two after the federal government scheme, which from January will guarantee qualifying home buyers 15 per cent of the funds needed to raise a deposit, said Simonds Group director Piers O’Brien.

Housing minister, Michael Sukkar, also suggested the Coalition would seek to expand the government’s FHB loan subsidy scheme to meet demand:

“We’re going to assess what demand is like, see what the reaction of first home buyers is to the guarantee. The Prime Minister has said if it’s a wildly successful scheme of course we would look at how to expand it”…

*Both schemes would obviously raise demand and place further upward pressure on house prices – the antithesis of a ‘housing affordability’ measure.*

Scott Morrison made this point explicit when launching the Coalition’s FHB scheme the week prior to the federal election:

“We want to see more first-home buyers in the market, absolutely, and we don’t want to see people’s house prices go down”. *

Given Scott Morrison worked at the Property Council as National Manager of Research and Policy from the age of 21 to 26, and the property lobby runs through his veins, expect the Coalition to throw more support at FHBs and the housing market.

Photo: Domain: Prime Minister Scott Morrison visited a masterplanned community at Caddens in Sydney’s west on Monday to discuss his first-home buyer deposit scheme. Photo: Dominic Lorrimer

SOURCE: https://www.macrobusiness.com.au/2019/09/developers-summon-first-home-buyer-patsies/

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URBAN PLANNER’S left-field idea to boost infrastructure: More IMMIGRATION

Who would you believe?

Dr Geha, a Developer come Planning Consultant, or Kelvin Thomson who referred to the Productivity Commission research that revealed with every 1% of population growth required 7.5% more spending on infrastructure?

Dr Shane Geha believes the government needs to tread carefully with the building industry.

Photo: Daily Telegraph

THAT aside we provide some background on Shane Geha:

Ask why Geha espouses Sydney would be greater with more people … when there are several other developed nations with stagnant/falling populations that enjoy stronger per capita GDP growth than Australia?

https://caanhousinginequalitywithaussieslockedout.com/2019/03/26/9625/

Shane Geha, MD of EG Urban Planning again said Australians were not having nearly enough children to replace the ageing population … that has nothing to do with the lowest wages growth due to the high influx of Visa workers, has it? … Cough … cough …

AND China has a very large ageing population … perhaps many eager to access our Medicare?

https://caanhousinginequalitywithaussieslockedout.com/2018/09/27/report-throw-open-the-borders-why-double-immigration-will-save-australias-choking-cities/

SEARCH CAAN Website with key words to find more about Temp. Visas, Permanent Residency …

Urban planner’s left-field idea to boost infrastructure: More immigration

Dr Shane Geha says Australia could soothe its growing pains by welcoming more migrants.

Euan Black

Euan Black

COMMENT

Australia must increase its migrant intake if it is to fund its infrastructure splurge and compete on the world stage, an urban planner has claimed.

Australia’s population grew by 408,000 people last year and is expected to break the 31 million mark within the next 15 years.

The country’s growth rate is the fifth-fastest among the 36 OECD countries. And, in the eyes of many analysts, Australia’s infrastructure and social services are struggling to keep up.

But for one urban planner, the answer to Australia’s growing pains is to welcome more migrants, not less a pitch described as “laughable” by a former Labor MP.

EG Property & Urban Planning managing director Shane Geha believes inviting more skilled migrants into Australia would, among other things, provide the tax revenue required to pay for its ambitious infrastructure agenda.

It would also bridge skills gaps and bolster Australia’s chances of developing into a world-leading, knowledge-intensive economy, Dr Geha said.

As he sees it, the government faces two options: Borrow cheap money to pay for infrastructure that allows the country to accommodate more people, or bring in the people first, so that you avoid taking on too much debt and pay for infrastructure through an increase in tax revenue.

“Both of those options can work, but my view is the better option is bring the people first, because … my view is that the people are the resource, not the objects,” Dr Geha told The New Daily.

“People worry about congestion and, yes, every strategy has issues.

“But we have to think, out of all the systems that we have, which one can get us to the objectives we want to get to in the future, to grow this country and its economy, to have a cleverer nation, a better nation, and I think that population growth is fundamental to all those views.”

Morrison infrastructure
Federal government plans to spend $100 billion on infrastructure projects. Photo: Getty

Given its impressive liveability, “unbeatable” weather and strong economic foundations, Australia could take its pick of highly skilled migrants, Dr Geha said.

And the idea that Australia was bursting at the seams was driven by emotion rather than data, as Australia’s urban density levels were far lower than other cities around the world.

To make his point, he compared Tasmania with Taiwan.

Spanning just under 70,000 square kilometres, the Apple Isle is home to 531,500 people, while Taiwan’s 36,000 square kilometres are inhabited by roughly 24 million.

While Taiwan’s high population density probably wasn’t a desirable goal for Tasmania, the comparison provided some context to the contentious Big Australia debate, Dr Geha said.

“And I would argue that the congestion is not even genuinely caused by more people,” Dr Geha said.

“It’s genuinely caused by the planning system being so far behind the eight-ball, in terms of delivering high density near the newly constructed rail stations and bus nodes.”

Alan Tudge.
Minister for Cities, Urban Infrastructure and Population Alan Tudge wants migrants to settle outside of cities. Photo: AAP

The urban planner’s comments come after an Infrastructure Australia report found road congestion from 2031 would cost the economy $38.8 billion a year, unless the current high level of infrastructure spending became the “new normal”.

*Victorian President of Sustainable Population Australia Kelvin Thomson said the report was “an admission of the futility of trying to build our way out of congestion”.

*Despite massive infrastructure spend over the past decade, governments had failed to expand social services fast enough to cope with the country’s rapid population growth, Mr Thomson said.

*And the idea that greater migration could alleviate Australia’s growing pains was “frankly absurd and laughable,” Mr Thomson added, with Productivity Commission research showing every 1 per cent of population growth required 7.5 per cent more spending on infrastructure.

The only real solution, Mr Thomson said, was to dramatically cut Australia’s migrant intake.

*“There’s a case for saying that cities like Ballarat, Bendigo and Geelong are better equipped to handle growth than Melbourne and Sydney – but I also think the idea that we could handle a migration program of 200,000 if only the migrants went to and lived in the right places is misconceived and a smokescreen,” Mr Thomson said.“Years of studies have shown that most migrants tend to settle in Melbourne and Sydney … and it’s difficult to keep people in one place.”

Recognising the importance of soothing Australia’s growing pains, Prime Minister Scott Morrison promised in his election campaign that he would spend billions of dollars on “congestion-busting” projects over the coming years.

Since then, the Coalition has also said it will cut the country’s permanent migration intake to 160,000 and introduce new skilled visas which allow workers to gain permanent residency if they live in a regional town for three years.

Critics, however, say the government’s plans will make little difference, as the number of temporary visa holders has increased significantly under its watch to 2.2 million people.

SOURCE: https://thenewdaily.com.au/money/finance-news/2019/09/06/migrants-infrastructure/?utm_source=Adestra&utm_medium=email&utm_campaign=Saturday%20News%20-%2020190907

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The development of a new WESTS TIGERS CLUB in BALMAIN is pushing ahead, but its future is uncertain

YESTERDAY we were notified that there was barrier fencing erected to the frontage of homes on Victoria Road … downside of the club to the Iron Cove bridge!

HAS the NSW Govt snatched up the site for the Western Harbour Tunnel … and not tellin’? Land amalgamation and compulsory acquisition?

INNER WEST

The development of a new Wests Tigers club in Balmain is pushing ahead, but its future is uncertain

The developers of the former Balmain Leagues Club in Rozelle have submitted a new proposal for a Wests club but the State government might still snatch it up for the Western Harbour Tunnel.

Joanna Panagopoulos, Inner West Courier

August 30, 2019

Inside the derelict Balmain Leagues Club site in Rozelle, left derelict since 2009. Heworth have submitted a fresh development plan but the site may still be acquired by the State government for the Western Harbour Tunnel. Picture: John Appleyard
Inside the derelict Balmain Leagues Club site in Rozelle, left derelict since 2009. Heworth have submitted a fresh development plan but the site may still be acquired by the State government for the Western Harbour Tunnel. Picture: John Appleyard

Long-held plans for a new Leagues Club could be over

Poor turnout to save Tigers club in Balmain

The development of the former Balmain Leagues Club is roaring ahead but the State Government will still not say whether they will use the site in the construction of the Western Harbour Tunnel.

Developers Heworth submitted an amended development application for the former Balmain Leagues Club last week after a Development Control Plan was approved on June 25. If the council-supported amendments are accepted by the state government, the development will go ahead.

A $135 million proposal to redevelop the abandoned Victoria Road block will include 173 apartments, shops and a new 3010sq m Wests Club.

Concept image showing what the redeveloped Balmain Tigers Leagues Club will look like. Picture: Grant Leslie Photography
Concept image showing what the redeveloped Balmain Tigers Leagues Club will look like. Picture: Grant Leslie Photography
Drawn plans for the redevelopment of the Balmain Leagues Club site.
Drawn plans for the redevelopment of the Balmain Leagues Club site.

West’s Ashfield CEO Sam Cook said whether the club be called Wests Tigers or Balmain Leagues is a decision to be made with member-input at a later date.

Additionally, a date has been set for the historic merger between Wests Ashfield and Balmain Leagues club.

The clubs have called an extraordinary meeting at Balmain Town Hall on September 18 and West’s Ashfield Club on September 19, where the members of the respective clubs have been asked to vote on the amalgamation.

The Balmain Leagues Club has 12,000 members, while Wests Ashfield has 36,000 members.

If endorsed by the majority of members, Balmain will unite with Wests, and all stakeholders will exist under the umbrella ‘Wests’.

Inside the old Balmain Leagues Club site in Rozelle, left derelict since 2009. Picture: John Appleyard
Inside the old Balmain Leagues Club site in Rozelle, left derelict since 2009. Picture: John Appleyard

However, a spokesman from Transport for NSW gave the same response they did almost two months ago.

The spokesman said:

*“Transport for NSW has commenced discussions with a number of parties regarding the potential use of various sites to support the proposed Western Harbour Tunnel project.”

This includes the “temporary use” of the former Balmain Leagues Club during construction, the spokesman said.

Heworth Managing Director Brian Hood said: “We lodged an amended DA last week in line with the revised DCP.”

“(The State government) have been very quiet,” he said.

“Our advice remains, just keep going as though nothing’s happening.”

Managing Director of Heworth Brian Hood opens the gate to the Balmain Leagues Club site in Rozelle. Picture: John Appleyard
Managing Director of Heworth Brian Hood opens the gate to the Balmain Leagues Club site in Rozelle. Picture: John Appleyard

Inner West mayor Darcy Byrne, who helped negotiate the agreement between Wests Ashfield and Balmain, is positive about the merger.

“The merger between both clubs will be a historic step that would unify all shareholders in Wests Tigers into the future,” he said

This includes a new home for the West Tigers Leagues Club in Balmain, which was supported by Heworth as a term of the proposed merger.

Although it won’t hold the Balmain name, it will keep a Wests presence in the area, and help fund junior Balmain Tigers Rugby League clubs.

*“(But) the very survival of the Tigers depends on preventing the State Government from snatching this site. The compulsory acquisition of the property would leave the Tigers without a home or cent of compensation,” Cr Byrne said.*

Wests Leagues Club at Ashfield. Picture: Annika Enderborg
Wests Leagues Club at Ashfield. Picture: Annika Enderborg

“We have done everything in our power to ensure the best outcome for the former Balmain Leagues Club, now it’s over to the State Government to do the right thing and cancel plans to acquire the site.”

#Only about 20 people turned up to a public meeting in July to try and stop the Balmain Leagues Club from becoming a tunnelling site

CAAN: # PERHAPS THIS IS A CONSEQUENCE OF YEARS OF OPPOSING THIS OVERDEVELOPMENT … HAS THE NSW GOVT DEPLETED THIS COMMUNITY OF ALL ITS ENERGY, LIFE … DRAINED THE LIVING LIFE OUT OF ‘EM?

SOURCE: https://www.dailytelegraph.com.au/newslocal/inner-west/the-development-of-a-new-wests-tigers-club-in-balmain-is-pushing-ahead-but-its-future-is-uncertain/news-story/07f084315fffefcb3d44cae2087cf036

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