Posted to The Age (26/3/2014) on 26/3/2014 at 5:18 PM
Commenting on "Buyers beware: RBA says housing market will cool off
http://www.theage.com.au/business/the-economy/buyers-beware-rba-says-housing-market-will-cool-off-20140326-35hsl.html
For months I have been alerting my clients and friends about the current real estate boom cycle that it is going to be a very short-live one. The cycle will cool as early as April / May 2014, unless another miraculous recovery in EU and US economies.
China cannot do it alone. Internal circulation of money or spending cannot and will not last for long. Debts need to be repaid and speculative investments will halt when reality checks set in. Goods produced must be sold to overseas buyers, which in turn generate income to buy raw materials such as coal and iron ore from Australia.
Current Chinese government policies targeting at corrupt officials or business operators really scare the pants off many who have lined their pockets with monies that cannot see daylight. Money has been channelled out quick and fast before their fortune turns into a puff of smoke. Obviously, there are many genuinely honest wealthy Chinese who choose to settle in Australia.
Not long ago Melbourne property buyers pay above the market value near "school zones" where the schools are recognised to "produce" top-mark students. They could have considered home schooling and hire a full time, most qualified or the best tutor to couch their children to score the top marks in all subjects.
It is frightening to witness how the Chinese bid at auctions. Once a Chinese enter bidding ring, who probably thinks as though there is no tomorrow, the game is almost certain to be over for non-Chinese bidders.
Owning a house is no longer a necessity for some; it is a status symbol, and it is represented by how much more one can offer for a property.
I do believe that the forthcoming bust cycle will hit the real estate market hard and swift.
Commenting on "Buyers beware: RBA says housing market will cool off
http://www.theage.com.au/business/the-economy/buyers-beware-rba-says-housing-market-will-cool-off-20140326-35hsl.html
For months I have been alerting my clients and friends about the current real estate boom cycle that it is going to be a very short-live one. The cycle will cool as early as April / May 2014, unless another miraculous recovery in EU and US economies.
China cannot do it alone. Internal circulation of money or spending cannot and will not last for long. Debts need to be repaid and speculative investments will halt when reality checks set in. Goods produced must be sold to overseas buyers, which in turn generate income to buy raw materials such as coal and iron ore from Australia.
Current Chinese government policies targeting at corrupt officials or business operators really scare the pants off many who have lined their pockets with monies that cannot see daylight. Money has been channelled out quick and fast before their fortune turns into a puff of smoke. Obviously, there are many genuinely honest wealthy Chinese who choose to settle in Australia.
Not long ago Melbourne property buyers pay above the market value near "school zones" where the schools are recognised to "produce" top-mark students. They could have considered home schooling and hire a full time, most qualified or the best tutor to couch their children to score the top marks in all subjects.
It is frightening to witness how the Chinese bid at auctions. Once a Chinese enter bidding ring, who probably thinks as though there is no tomorrow, the game is almost certain to be over for non-Chinese bidders.
Owning a house is no longer a necessity for some; it is a status symbol, and it is represented by how much more one can offer for a property.
I do believe that the forthcoming bust cycle will hit the real estate market hard and swift.
