The Australian housing market is now truly incomprehensible, and it feels that those who make policy are too free to do what they want. Take this news this morning for example:
The title says: "if you can`t borrow money from Australian banks, Chinese property investors may be forced to sell their homes."
Can you blame us?
The news said that since April this year, a large number of Chinese buyers have already bought the property, and the money has also been lent, so the money will have to be paid. All of a sudden, Australian banks stopped lending, saying they wanted to control risk, and said they wanted to reduce their dependence on Chinese investors.
Well, Chinese buyers who rely on loans to buy their homes are now unable to complete the delivery of property rights, and if they can`t raise enough money, they will have to sell their properties.
But the question is, where can I find this catcher?!
You should know that foreigners in Australia are not allowed to buy second-hand housing, including second-hand flats. Local buyers are less likely to buy second-hand homes.
So a large number of Chinese buyers find their house can not be sold and can not afford to buy, completely by this year`s Australian bank`s new rules and regulations secured!
In that case, Chinese buyers will have to default.
Default more, real estate companies panic, Australia`s goverment panic, after all, these are white money, no one is willing to go against the money.
So on Saturday, Australia`s Treasury Secretary, Scott Morrison, announced that overseas buyers would be allowed to take over condominiums that had failed to close on time for other reasons.
The implication is, "Hello, overseas buyers, sorry we seem to have gone too far before, and now we have to invite you to pick up again."
The details were published on the website of the Foreign Investment Review Board of Australia (FIRB) as soon as the call came to an end:
"We will allow developers to recover property (failed settlements). That has not been closed on time under" New House exemption Certificate (New Dwelling Exemption Certificate) "
The regulation takes effect on that day and is limited to "new" developments that cannot be transferred.
Effective on that day. It`s a little hasty to eat.
Alas, at the beginning it was you who restricted the loan, and now it is you who let us take over. Is it really that difficult to make a credible policy?
However, after all, the pre-goverment lending restrictions in Australia have really played a role. The housing market has not gone mad. However, with the opening of the access channel this time, many overseas investors have come back again, and I am afraid that this price cannot really fall.
