Australia`s high housing prices have deterred many people who want to buy a house, far beyond the reach of the average person. Housing prices squeeze young people out of real estate malls and have to delay buying homes and getting married or even having children. As housing prices become increasingly prohibitive to young people, the lives of the younger generation are being squeezed by higher housing prices, so the "sideline" of buying a house is also on the rise.
"Lottery buying."
Quick-eyed gambling game companies have discovered new business opportunities, timely launch of "buy lottery tickets, win luxury homes!" A new method of winning the prize.
The way this lottery is played is also relatively simple. For example, if a number is worth $5, the more the number is bought, the more the probability of winning the lottery will be, and the final total amount of the lottery will be awarded when a certain amount is reached. People with lucky numbers can get a real estate. The new approach has attracted millions of homeowners, many of whom use the lottery ticket as the only key to owning the property.
There are now two types of legal property lotteries in Australia: RSL Art Union and the Yourtown RSL Art Alliance are among the largest lottery agencies, offering a lottery with a face value of just $5, and the first prize is a million mansion. For example, the agency ` s December report showed that they purchased a three-bedroom attic in the Camperdown area near the University of Sydney for $1,575,000 as a "first prize". In just three months, 2 million lottery tickets were sold, totaling $10 million. In addition to deducting the money from the house itself, the rest was used to fund veterans.
Yourtown, another charity that runs "residential" lottery tickets, also opens up a new way of buying homes for young people who can`t afford to buy their homes. Similar to RSL Art Union, they promised to raise funds for public good such as children, illness and services for the disabled. Their top prize is often a luxury house, such as a Sydney teenager, James Burry, who spent $200 on a lottery ticket and won a $4 million seaside mansion.
While most people`s expectations for the top prize in the lottery are coastal villas, charities hope to attract a wider range of buyers, especially young families and crowds, by diversifying the types of properties, including apartments and platoons in the city. But unlike traditional lottery buyers, nearly 50% of "mansion" tickets are bought by people between 33 and 55.
"Bitcoin buying."
In addition to lottery buying, another well-known way to pay for home purchases is Bitcoin. Digital encryption currencies are getting hotter, and almost everyone is talking about the price of Bitcoin, the currency that stands for it, setting new highs. Bitcoin now seems to be becoming an acceptable form of payment for home purchases.
Now sellers of at least five homes on Domain are willing to accept payment for home Bitcoin. A rainforest resort in the northern suburbs of Queensland is sold for 100 bitcoins or $1.1 million. A $ eight hundred thousand house in Melbourne also accepts Bitcoin payments. While it may seem like a marketing strategy, the deals also raise questions about whether buying a house in Bitcoin would be a new payment for the Australian property market.
But with more speculation about Bitcoin, the digital money market itself is fragile, and people are worried about the bitcoin bubble. It`s not clear whether Bitcoin is a disaster or a chance to get a lot of digital money.
Bitcoin is traded in part because the price of bitcoin has been soaring. In 2017, the price of a bitcoin has nearly tenfold to more than US $10, 000 ($13181). Those willing to trade in Bitcoin are generally already investors in digital currencies. For those who believe that the value of Bitcoin will rise even further, the sale of a large number of Bitcoin is very attractive.
"it`s not just Australia, there`s a lot of interest outside Australia," said CoreLogic, a property research firm. "I`ve seen houses in Fiji that are willing to accept Bitcoin." The Australian Inland Revenue Authority has been eyeing Bitcoin for some time. The IRD statement said: "our view is that Bitcoin is neither money nor foreign currency, the supply of Bitcoin does not apply to the tax on goods and services, and Bitcoin should apply to the category of capital gains tax.
One final caveat is that Bitcoin buying (including other online encrypted coins) is legal in Australia, and the deal can be completed as long as the seller of the house is willing to accept it. But the only thing to note is the need to file with the Australian Inland Revenue Service (ATO).
