VIC For those Active in the Melbourne market....Is Melbourne cooling ?

I'd say the market has slowed slightly in recent month. Hard to say whether it's just the Xmas break or if it's overall momentum. Can't see 2016 being as strong as 2015 but I'm anticipating continued growth at a subdued rate.

 

Report it to the FIRB and see who is laughing then...if no approval, both he and the agent will be in deep s$%t. I have reported one, a house I wanted that went $300k over reserve and knew there was no FIRB approval....it has been reported and they are not laughing....

Here you go Reporting a breach of the foreign investment rules | FIRB Compliance

They probably wont do anything as if they enforce the illegal sales, there will be hundreds of properties in Balwyn, Glen Wav, Mt Wav on the market...

It leaves a dirty taste in your mouth hey...

Cheers Ivan

 

Looks to me like the Melbourne market is still relativley strong. Data may be skewed toward showing a cooler market, as this time of year there is not a lot of established stock going up for sale. That will most likely change in the next number of weeks as home owners get into the swing of 2016. Time will tell. Obviously the apartment market is a different story - need to tread especially carefully if investing in this area.

 

Did firb do anything? Yeah for a bidder who had to use a translator seems unlikely to be a local. He might have put the 10% and then put and/or nominees and decide to do the application later?

 

How do you know if someone is a non-local? Is the only way after the contract has closed, and you can look up buyer details in rp data or the like? And then try to find out (how?) if said owner is local?

A house I watched was recently purchased by a non-English-speaker, but I suspect one of their family members might be a resident, in which case firb wouldn't apply(?) - or either way, I suspect they've gotten around the restrictions. (edit to add: I've actually met the buyers, so fairly sure about their circs.) As would probably most other mainlanders?

 

There is a whole pack of considerations including the additional stamp duty and the stat dec the owner signs. Personally I am getting fed up with it, I may do a FIRB thread and name a whole pack of houses that I know have been purchased in breach of FIRB guidelines - have been reported and no action has been taken. You guys interested?

 

Not really. Sounds more like a personal issue. Your energy on the issue will be better spent elsewhere I would think.

 

I'm interested in knowing more about this topic. I hardly know about the FIRB guidelines and what actions the government is taking.

 

They can buy existing if they bulldoze and develop the land within a certain period of time. They can't build a new single dwelling though, must increase the housing on the land.

 

Thanks. I think an issue many who attend auctions is that they automatically assume non-English-speakers must be foreigners, whereas some people with residency just prefer not to speak English.

I also don't know how it's possible for someone to just find out residency status of the buyer? Perhaps there's a website or something? I know that some people with residency might choose not to live in Australia for a long period of time, so a vacant house doesn't necessarily mean that it was purchased by a non-resident.

 

It doesn't necessarily mean that, true. And we don't want to offend our new citizens and residents. Then again, I hope that doesn't mean that we're not allowed to check? While you wouldn't make outright accusations without checking first, you would still want to check. Plenty have been caught out already.

 

How do you check?

 

Re FIRB Its not just a housing issue, the effective operation of the FIRB and enforcement of the FIRB rules will result in a flood of houses back on the market that have been purchased illegally. In some suburbs of Melb and Sydney - there is a majority of houses that have been purchased without FIRB approval. Enforcement will require those properties to be sold. Think of the effect there - that would have a major ripple in the Melbourne market.

On topic - Melbourne won't cool imo, naturally christmas is quiet but it has not been that quiet a number of large sales took place in the south east from foreign investors who continue to have confidence in the unit market. However with Chinese New Year approaching the housing market will continue to thrive.

Auction results have been strong in most areas and there is a high supply of housing on the market with many trying to cash out and auctions are keeping up.

I don't see any major cooling in the next 12 months - strong confidence by investors in metropolitan Melbourne with all the fundamentals still being ticked. Saying that - the expentantial growth we have received is difficult to continue so due diligence comes into play to choose underexplored areas and developers are coming in to buy land to build large scale apartments in many suburbs close to Melbourne.

Cheers Ivan

 

I don't know. Wouldn't vendors and real estate agents be required to do this? Or is that why there's now a reporting system in place? Or is there nothing in place?

 

HI Ivan
I think we will continue to see a very good market in Melb 2016, perhaps not the same growth as past 2 years, however lots of confidence in this market and most importantly buyers, FHB market going strong. As a developer I am loving this market.

I think Melb market will outshine Brissy market hands down, lets revisit this thread at end of 2016, see what happens and whether my prediction comes to fruition..

Marisa

 

You need FIRB even for OTP. Either the vendor applies for a pre-approval to market to foreign buyers, or buyers apply for it themselves. I have purchased OTP prior to getting my residency status and FIRB was still required.

So I don't see how it is possible to purchase without the FIRB approval as this was required for settlement.

I think enforcement is the issue ( whether they have increased housing on existing land/property within the time limit )

 

Well fielded a call from agent...today Hoppers Crossing house bought for 170k..in 2007 I think...now worth over 360k. Apparently the market is hotting up near Werribee....things are selling quickly.

Apparently Werribee has increased even more...my $130k buy there is now near 300k. Who would have thought???

At this rate if outer Melbourne keeps going...Brisbane takes off...and Adelaide also performs...even if it is only $70-80k per property that is $1m in equity in the bank!

 

Tge chinese are looking towards seq...inner and mid Melbourne has had its day...till the next cycle .

 

huh?