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Yeah, I understand that Chinese investment in Australian real estate is significant - I'm questioning whether or not it is the most significant factor driving t
by tmnvix 9y ago
Yeah, I understand that Chinese investment in Australian real estate is significant - I'm questioning whether or not it is the most significant factor driving the real estate boom. I've always assumed cheap credit and tax incentives for locals were the most significant factors.
- ruytlm 9y agoAh, apologies, I misunderstood. I don't recall seeing anything usefully quantified in the article about the effects of tax incentives, though there was a comment somewhere there about negative gearing, quoting David Llewellyn-Smith: "This tax policy allows more than one million Australians to engage in a negative carry into property in the hope of capital gains. In a nation of just 24 million, 1.3 million Australians lose an average of $9,000 per annum on this strategy thanks to the tax break". As to determining which is the most significant factor, I will leave that to those with far greater understanding of the area than mine.
- techdragon 9y agoNot a hugely accurate measurement method but it's definitely clear that Chinese investment crossed a threshold sometime this year, because I'm starting to notice property developers advertising including Chinese (I'm pretty sure most of what I've seen has been in Mandarin but I could be mistaken.) along side the English. It's not the norm yet, but it's definitely a troubling sign of how significant the overseas investment has grown.