China Sharemarket rout - side effects

@Tekoz

Re: isnt not a bad idea to invest in Sydney this year

really depends on location, type of product, LVR and ability to hold. we are currently eyeing a Deve site in right middle of Sydney metro. Site and product , we are looking at it, wont be affected by market movement as such for while.


Most apartments in Gold coast were trading at 60% cheaper then original price paid by vendor to developer.

but it wasn't US style bloodbath.. as most Asian investors paid CASH, or lower LVR and ability to hold stock as long as it take to ride out a dud wave.

 

@Be Developer Whoa, good on you mate. I thought that now is not a good time to develop residential property, but yes, you are so brave mate.

Yes, that's correct most of the Chinese people that I know they paid the property outright or at least with low LVR, hence they can hold it as long as possible.

 

I would think that it may effect some current deals, and they may just fall through. However, going forward it would encourage people that weren't in the share market already to look at a more secure market like Australia.

 

Gotta wonder where/how they get so much cold hard cash.

 

@JDP1

It is the nature of the people mate, in Chinese family, there is no such thing as government assisted pension or Medicare so to speak, therefore they are living modestly or as needed basis.

Working 6 days or 12 hours daily is common, some people even work even harder than that and live under the standard of living just for the sake of accummulating enough money for their kids or themselves in hte future.

That's from working class family, from Chinese enterpreneur side, they've got most of their wealth from manufacturing industry and selling their land to the apartment developers in mainland China.

sometimes they are pooling money between family members to be able to afford the property here with lower LVR or paid them in full. Because in conservative Chinese family, any debt is bad, so pay it outright.

That's all I can think of positively.

For the negative thinking, people can say it is a corrupt govt. officials laundering money here in Australia --> not sure if this is the case because my friend whose family now works for Chinese Govt. is not allowed to go study abroad if their parents is mocing to high rank officials in the Government.

 

Tekoz is mostly on the money. There are some significant cultural changes happening with the post 90s generation though, who display fewer of the traditional traits of saving hard and spending wisely. They are more likely to splash their money about and are often referred to as 'fu er dai' (second generation rich).

Back to property, many white Australians (for lack of a better term) encourage independence from an early age and are likely to go at it alone or with some minor help when buying a home. Where the Chinese family, often including extended family, will come together to finance a home or a major asset thus increasing their buying power.

Investment in property by foreigners is mainly concentrated in the lower end of the market, suggesting the middle class Chinese are working this area. The wealthier Chinese are often not included as foreigners in the statistics as they have PR status or gained citizenship; it only takes $5 million to buy an Australian passport these days.

There is an enormous amount of money floating around China at the moment, with many people making fortunes almost literally overnight. Much of the money made is questionable at best, which leads to them being a target by the CCP if their guanxi (relationship) breaks down, hence their strong desire to shift the cash outside of the country.

 

Good points..as long as some of it comes my way ...

 

@Traveller99 Cool, now I understand more about the Chinese culture Xie Xie ni...