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Impacts of low A$ on house markets?

Discussion in 'Where to Buy' started by nluo, 4th Sep, 2015.

  1. nluo

    nluo Member

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    Hey guys, we must have noticed the aussie dollar has dropped a lot this year and has dropped further this week that is under 0.7 US dollar atm. Most news I have read is because of the weak economy from China, and therefore our exports to them of materials will drop substantially.

    If the $A is this low, the house prices looks further more attractive and affordable if they compare prices to Beijing, Shanghai or Hong Kong. I guess more Chinese/Oversea buyers come to buy/invest? Especially some chinese favoured suburbs in Sydney, Melbourne, Brisbane etc?

    How do guys think the impact of low A$ in the house markets?
     
    Last edited: 4th Sep, 2015
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  2. 2FAST4U

    2FAST4U Well-Known Member

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    It might turn out like Sydney 01-03 when the dollar was around US 50 cents.
     
  3. nluo

    nluo Member

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    Well Sydney has already gone up a lot during this cycle, i am not sure how far more it could go, i mean how people could afford to buy/pay the mortgage? But if $A is really 50 cents... a lot of asian buyers will come...

    Also the house prices will be very dependent on the unemployment rates, so just see how it affects our economy.
     
  4. 2FAST4U

    2FAST4U Well-Known Member

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    24% of the population is born overseas- probably even higher in Sydney. Than you've also got all the foreigners who can purchase houses OTP or circumvent the system by purchasing through friends and family already in Australia. China has more millionaires than the entire Australian population so there's no shortage of money.

    People that are priced out will continue renting where there's already a difference between Sydney's median house and rental prices. E.g. median house price of Sydney is over $1 million, whilst median rents for Sydney houses are $595 a week. Anybody purchasing in Sydney now obviously isn't too worried about yield and foreign investors are mainly after a safe place to park their money. Most of the price rises in Sydney is all due to investors anyway since most first home buyers have been priced out since 2013.

    It'll be interesting to see how it plays out. I'm priced out so I'm just a spectator anyway and don't live in Sydney so whether prices rise or fall doesn't concern me.
     
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  5. trinity168

    trinity168 Well-Known Member

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  6. SouthBoy

    SouthBoy Well-Known Member

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    I doubt that the falling $A will attract more Asian investors into Sydney. As noted above by 'nluo' Sydney has already had a good run in the past 3 years. If Asian investors are willing to park money in the Sydney property market for a 4% yield at best, they are obviously being mislead by someone.
     
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  7. Tranquilo

    Tranquilo Well-Known Member Premium Member

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    Please send the Chinese investors to Hamlyn Heights Geelong;)
     
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