India Property Crash - Will it Drive Indian Demand in AU Property?

Worth a read:

'Those looking to buy vanished overnight': India's house crisis

One would imagine this course of action/occurrence in India will see for some capital outflows into other asset classes within India (e.g. stocks, gold, bonds etc.), but what do folks think about it also pushing Indian interest into foreign real estate markets too? I.e. namely Australia?

Indian investor numbers have been growing in the AU market generally. Could the Indian banknote correction see for increased demand here in resi property?

 

Well, I think if they do come here to invest we may see an oversupply of 7-11 stores and servos .

 

Buy in Sydney West.

 

Or perhaps Melbourne North?

 

Isn't this crash tied to all the big bank notes not being able to be stuffed under the mattress anymore?

If that's the case, wouldn't that affect Indian's ability to buy any real estate? At home or abroad?

 

There is an oversupply of Curry Restaurants in Harris Park.

 

It actually will increase property purchases. Salaried professionals and honest tax payers who were unable to compete with people with a lot of cash (black money) can now buy at the right price.

 

yes i agree with this.
The measures introduced were anti-black money measures.
Although it may not affect the new builds and sales from reputed developers much...will affect the sales volumes of expensive second hand stock more ( as these were the ones suitcases (full of high denomination bills) paid for in the past).

 

Absolutely. I have long believed a lot of corrupt money from Asia is flowing down to Australia.
Till just a few months ago - say if you were an (Indian) developer in Australia and you/r family had access to illegal monies in India. All you had to do was walk up to an Australian bank (I think it was NAB - which has shut doors now) and deposit all your illegal wealth into your Australian bank account. Sometimes, multiple deposits slightly under $10k. I think the gov of India has got it wrong again. If I were to be in India and had to find a way to stash illegal monies, every so often, I'd be going up to the money changers and buy US Dollars then invest in US property

When you emigrate the AU gov isn't really asking how/where you got the monies you are immigrating with. So, as long as you could build a decent credit profile here (get a job for a year or so) and had your illegal money from India pumped in, you'd be buying/developing a lot of property in Australia.

I love watching the border protection show. I think once every so often they catch Chinese people travelling with anywhere between AUD $40k - $60k in person! One of them was a cop. All of them are let go as I think all the federal police is interested in knowing is if this money is either a source of, or funnelled for terrorism. All this money, I think is only helping the Aussie property.

 

as long as the 40-60k in pure cash AUD is not used for illegal activities such as terrorism, drugs etc...and they pass muster on the other tests, yes, they will likely let them go.
Like i said in another thread, we need asian money- however originally sourced.
It would be near recessionary conditions if we didnt.