Impact of Tighter Beijing Regulations on Australia’s Real Estate Market Exagerrated

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A top researcher has claimed that the impact of the demand coming from China on real estate properties in Australia has been overblown. There was the initial speculation in various finance and real estate sectors that stricter regulations in Beijing towards foreign investments could negatively affect the Australian real estate industry.

A professor from the Australia-China Relations Institute, James Laurenceson, spoke to Mortgage Business about the impact of China and how their government made it more difficult for their citizens to get money out of their country. According to Mr. Laurenceson, “The China factor in Australia’s property market, certainly in general, has been overblown. If there’s a pullback in Chinese investment over the next couple of quarters – I don’t think that’s going to have a dramatic impact.”

Mr Laurenceson further stated that investments from China has a small effect on the whole picture of the real estate market in Australia. He claimed that only “very small pockets” will be affected.

“There have been other bigger factors like record-low interest rates which have been encouraging Australian investors to put their money in property. I think those sorts of fundamental factors are going to continue to drive the real estate market, not Chinese investment,” Laurenceson added.

The professor also said that’s with regards to the changes in Beijing and how the Chinese government has made it more difficult for the Chinese to bring money out of their country, he feels this is a short term situation and that the nation’s capital is only “enforcing existing rules”.

He noted how in the past, the law in China stated that their citizens couldn’t send out more than US$50,000 each year. This rule was never enforced, according to Mr. Laurenceson. The recent tight regulations was simply an effort to enforce the “existing rules”.

The expert claimed that there will be a slowdown of investment stemming from China in the next one or two quarters, but in the grand scheme of things, he expects the Chinese will increasingly continue to invest in Australia in the years to come.

NEWS: Australia might tighten anti-money laundering rules for real estate buyers

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The government in Australia is thinking of implementing stricter anti-money laundering rules, ones that will include dealers of precious stones and real estate agents. The move was brought on by warnings provided by a global watchdog that involves potential illicit money making its way into the nation.

Authorities in Australia are mostly likely to keep a watchful eye over the surge of money from Chinese buyers who are seeking for a low-risk way to stash money away from their home country. The proposed regulations will not be implemented against Chinese buyers alone but speculations assume that China will be number on the list of countries to watch out for. 

Real estate assets have been the choice of Chinese buyers for years. In the past few months, more and more buyers from the Asian country have also been buying away Australia’s rare pink diamonds. 

Financial Action Task Force (FATF), an organization with its headquarters in Paris, investigates the ability of countries around the world to battle illicit cash flows. FATF informed Reuters that Australian authorities are lax when it comes to scrutinizing the property and precious stones industries, leading to an “increasing high risk” in the international fight against money launderers. Money laundering has been known to fund the activities of terrorists. 

The country’s Attorney General’s Department, which is in charge of Australia’s law and justice framework, is studying the current rules to tighten security and address the concerns of FATF. The rules already in place involve banking, gaming and remittance. 

Under current regulations, foreigners are allowed to purchase precious stones and prime real estate lots without showing property identification. Furthermore, the foreign buyers are not required to disclose the source of their financial means. 

According to Simon Henry, the co-CEO of juwai.com, which is the biggest website linking Chinese buyers to real estate properties in Australia, the country is facing a higher risk of being involved in money laundering activities through property purchases. Among property buyers from Chinese, approximately 70 % fund the purchases via cash payments, and less than 10 % of these buyers use banks to fund their purchases. 

Experts who keep a close eye on international money laundering activities claim that these buyers carry suitcases filled with cash from China. Several wealthy buyers have been caught using fake invoices and underground banking to access funds. 

Want more Australian real estate news, plus tips to help you sell your house fast without an agent? Follow Zero Commission on Facebook, Pinterest and Instagram.

Source: Reuters

NEWS: How to Identify the Australian Suburbs with Pending Housing Price Dips

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According to statements made by Dr Andrew Wilson, the chief economist of Domain, 2016 will be a flat year for real estate properties in Sydney. Wilson added, “I’ve been predicting up to a 4% property price growth rate in Sydney, and about the same nationally. Economic circumstances are now set to deteriorate and it will be a year of circumspection.”

But there is good news. Dr Wilson expects real estate prices in Adelaide, Brisbane, Canberra, Melbourne and Hobart will rise and not deteriorate.

The last occurrence of dipping housing prices in Australia was back in 2008, in the wake of the global financial crisis. While the outlook this year isn’t looking positive for Sydney, there are suburbs that will hold up better. And how can you tell which of these properties are expected to experience dipping prices? Based on the nation’s top real estate economists, you can intelligently foretell which suburbs will take a dip or a fall by watching out for five factors.

Factor #1: Interest Rates

Interest rates are an excellent indicator of the value of cash. If the benchmark for interest rates is currently low, there will be less repayments of home loans. This also means that there will be less money earned in cash accounts.

According to the chief economist Nicki Huntley of Urbis, a consulting firm, speculation of interest rates is key. Huntley also added, “That’s one of the reasons why I don’t think this cycle will be sharp because outlook for rates is soft.”

Factor #2: Supply Dynamics

Look into the amount of nascent development occurring in your suburb. Make sure you furthermore determine whether the development involves detached homes or units.

Factor #3: Growth of Wages

If salaries are not increasing in your suburb, then it’s safe to assume that buyers will be unable to afford higher home prices.

Factor #4: Unemployment

The less people have jobs, the less will there be a pool of buyers who can afford to pay mortgages. Less people will be investing as well.

Back in the financial crisis of 2008, for example, the Brisbane suburb of Logan took a huge hit. Logan, according to Dr. Wilson, is an affordable area and has plenty of infrastructure. Despite its attractive points, Logan prices weren’t able to see significant growth since unemployment floated about 10 %. Fortuantely, real estate prices in the suburb are now seeing some growth, thanks to falling unemployment rates.

Factor #5: Atmosphere

While not as scientific as the other factors, it pays to look into the “feel” of a suburb if you want to determine the decline or growth of housing prices. When assessing an area to make an intelligent guess about pricing, take into account factors that add to the vibe of the place. Is the local park well maintained? Do residents keep their lawns in shape? Are there businesses shutting down? What are the restaurants and shops in the area?

Follow Zero Commission on Facebook, Pinterest and Instagram for updated Australian property news and selling tips.

 

NEWS: Victoria Real Estate Agencies Investigated for Alleged Underquoting

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Six real estate agencies have come under scrutiny in in Victoria for underquoting. Increasing complaints from customers have lead to the investigation and 200 surprise inspections were conducted last year due to complaints coming from all over the state.

The Victorian government ordered Consumer Affairs Victoria to implement the inspections, The Age reports. Underquoting occurs when a real estate agent misleads buyers by marketing a price that is cheaper than the seller’s price, or less than the auction reserve price.

The Age also reports that, as of today, six large investigations are being undertaken. While the Victorian government hasn’t disclosed all the details related to the investigations, government representatives stated that these involve franchises from major Australian real estate agencies, along with smaller real estate agencies.

The government has raided some of the offices of these real estate companies and have taken hold of several documents to be collected as evidence. Over 300 property sales are now being investigated for suspicious pricing activities.

Jane Garrett, Consumer Affairs Minister, stated, “We are halfway through these inspections and the result will be used to inform any changes that are needed.”

Garrett further said that authorities were watching the activities of real estate auction process. She admits that unethical behavior will be hard to prove but that the government has the responsibility of performing better surveillance than before. The minister added that the surprise inspections will continue until July this year. 

Enzo Raimondo, head of Real Estate Institute of Victoria, has expressed his support for the investigation. Raimondo further claimed that the institute will not be supporting any agency that deliberately engaged in unethical pricing practices.

Consumer Affairs Victoria (CAV) posted advice on its website, telling buyers to conduct research prior to buying property. The CAV instructs potential buyers to look into the market value of the property their interested in, rather than fully trusting real estate agents.

Follow Zero Commission on Facebook, Pinterest and Instagram for more Australian real estate news and selling tips.

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NEWS: Sydney Housing Market Not Expected to Dip This Year

2015 was a year of robust growth for the Australian housing market. Despite news of a fall in the home prices in Sydney this week, the head of research at CoreLogic RP Data, Tim Lawless, predicts the Sydney real estate market will not be experiencing significant price falls.

Mr. Lawless explained his outlook by saying, “I think there’s still that underlying factor of strong demand driven by low interest rates, and not really the supply issues that Melbourne has seen, I think we’ll continue to see Sydney at least remain fairly neutral in its growth.”

Last year, the national average capital city house price was seen to rise 7.8 %. However, in December 2015, growth was stagnant. Sydney housing prices grew by 11.5 % but it’s worth mentioning that city prices declined by 2.3 % in the third quarter of 2015.

The prices of homes in Melbourne had an annual growth rate of 11.2 % last year but faced a 1.9 % dip in the third quarter. In other areas, Brisbane boasted one of the strongest third quarter rates and had an annual home price growth of 4.1 %, similar to Canberra’s.

Follow Zero Commission on Facebook, Pinterest and Instagram for more Australian real estate news and selling tips.

 

 

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How To Sell Your Australian Home and Save on average $14,090++ by Signing Up with Zero Commission

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“Are you guys for real?”

“Can I really sell my house without an agent in Australia if I sign up with your company?”

“I want to sell a house privately, how much will Zero Commission save me?”

These are some of the most common questions we receive from people who either see our site, our blog or one of our social media accounts (Facebook, Pinterest, Instagram). Online agents—a.k.a. the new breed of real estate agents—are quickly gaining speed around the world.

And for the best reasons.

  • Yes, we are for real.
  • Yes, we will help you sell your home without you having to line the pockets of a real estate agent or any middleman, for that matter. We are NOT a middleman who will take any cut from the sale after your property gets sold.
  • We save our customers an average of $14,090 after each property sale.

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Technology hasn’t just changed the way we work and stay in touch with friends. It hasn’t just changed how we shop, read the news and look for the best restaurants in town or the cheapest tickets to fly to our next vacation. Technology today has changed the way people in Australia and most of the world buy and sell real estate assets.

Over 90% of people in the nation now search online for the best property deals. Whether these are newly married couples looking for a place to buy in the suburbs, or a family of four ready to sell their first home and embrace a new life chapter, the Internet and its users’ online habits have created the new breed of real estate agents.

And Zero Commission is happy to be part of this exciting cutting-edge trend.

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How does the new breed of online agents like Zero Commission work?

  • Instead getting a piece of the pie after you sell your property through us, Zero Commission charges a fixed fee of only $399. That’s it. No hidden fees. No monthly fees. No kidding.
  • We will list your real estate property on realestate.com.au and domain.com.au (the two biggest real estate sites in Australia) until you find a buyer.
  • We will also send you a high-quality FOR SALE signboard that you can install on-site, attracting more potential buyers outside the Internet.
  • Buyer enquiries will be sent to your email inbox instantly and we will furthermore provide weekly property activity reports.

Every year about $15 Billion dollars go to the old breed/commission-based real estate agents. After five decades of these superfluous middlemen taking home such a big chunk from Australian homeowners, the arrival of the new breed of online agents like us will cause billions of dollars to remain in the pockets of homeowners like yourself.

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Imagine the home improvement projects, vacations, investments, etc. you can spend on when you won’t have to pay an agent a single cent after you sell your home.

  • Do you want to sell your Australian property fast?
  • Do you want to cut the middleman and save yourself on average $15,000 and more after you sell your home?
  • Do you want to work with a trusted online agent today for a fixed fee of only $399?

If you answered yes to any of these questions then head on over to our sign-up page HERE. Zero Commission will help you sell a house privately in Australia and let you keep 100% of the sale price, ‘guaranteed’.

If you’re still wondering “how to sell my house without an agent”, stay tuned. We will be posting more information here on our blog. If you want to receive updates on our future blog posts, be sure to LIKE our Facebook page where we post testimonials from happy clients, very useful home improvement tips, amazing guides to help you sell your property fast and more.

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Welcome to the emerging world of Zero Commission Real Estate Services

The way we Buy and Sell property has changed, globally.

Today there is an emerging new breed of Zero commission real estate agents, who understandably, are taking a rapidly increasing share, of the property sales market.

Zero commission real estate services have become possible thru the internet’s ability to provide instant access to property information, and with technology now available to re-direct buyer enquiry, direct to the homeowner is saving homeowners tens of thousands of dollars, easily, legally and efficiently.

The Australian residential housing market lists for sale approx 1 million residential properties per year. And with the average commission based real estate agent charging $15000 per property means that Australian Homeowners are spending approx $15 Billion dollars every year just in selling their family homes !!!

A big chunk of $15 Billion dollars given back to Australian Homeowners will certainly be put to better use than filling the pockets of “unnecessary” commission based realestate agents.

Today, Australian homeowners are moving in mass, away from commission based realestate agents and choosing to sell homes themselves, with the assistance of zerocommision on line licensed real estate services. Resulting in saving the average Australian homeowner $15,000…… AND WHY NOT ? ­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­

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BRW Magazine

BRW Magazine published an interesting article which highlighted the subtle yet sure change that is occurring in the real estate industry. A new player, the commission free model, has joined the ranks.

The article entitled, ‘What real estate agents won’t tell you’, exposed a key fact. Houses aren’t really that hard to sell and real estate agents aren’t the only ones who can do it! The internet has changed the game because the information you need to buy and sell is now at everyone’s fingertips.

Here are some key takeaways from this article:

Consumers can now buy and sell their homes online at a fraction of the cost of an agent by using websites such as PropertyNow and zerocommission.com.au (see story “Virtual agent makes its move”).

These sites act like a virtual real estate agent. Depending on how many bells and whistles you’re prepared to pay for, they help arrange professional photographs, a for-sale board at the front of your house, assitance with a full range of online marketing and additional support services

Such sweeping changes have empowered sellers, buyers and landlords like never before.

“The veil of secrecy has been lifted; it’s not hard to sell a house, it’s ridiculously easy,” the owner of PropertyNow, Andrew Blachut, says. “Agents try and wrap it up in mystery as much as possible.”

“They say things like, ‘We are masters in selling your home – you don’t have access to buyers and don’t have masterful negotiation skills’. It’s complete nonsense.”

Buyers advocate David Morrell says the internet will become “more and more the medium through which people buy and sell” and that “you don’t necessarily need the agent in the middle”.

Investors can now do their own research and get a reasonably accurate home valuation from a variety of sources. Some of it’s freely available on the web, including suburb and street profiles and median house prices………

Many people have also learnt that marketing your home isn’t really that hard. Hundreds of thousands of properties are listed for sale or lease through the portals www.realestate.com.au and domain.com.au and some consumers are using Facebook and Twitter to sell their homes.

Domain and realestate.com.au dominate in property listings. REA Group, which owns realestate.com.au, controls about 70 per cent of the online real estate advertising, IBISWorld estimates. It and domain.com.au charge real estate agents a subscription fee plus advertising fees to advertise houses on their portals. Consumers pay a one-off listing fee.

To read the full article published in BRW Magazine click here.