Property Investments

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SPONSORED POST
The Australian property market is shifting and changing thanks to a multitude of forces. DPN's Managing Director, Sam Khalil shares his thoughts on the current market and reveals property investment opportunities in the Wollongong, Newcastle and Brisbane areas.
The last five years have seen a phenomenal surge in the demand for property. It’s been a perfect storm of consistently low interest rates; an endless, thirsty demand for stock and foreign investment at record high levels. This in turn pushed up construction and new builds and kept up supply.
However, like all good things it had to come to an end. This is not to say the market is in trouble by any means. More that it’s no longer like 2012 or 2013 where property investment was like shooting fish in a barrel. Almost anyone with a little knowledge and a lot of luck could do well in the prosperous conditions.
But things have changed in <a href="https://www.dpn.com.au/learn/market-updates/sam-khalil%E2%80%99s-property-outlook-for-summer-2016" target="_blank">the last 12 months</a> and so 2017 and beyond will still present golden opportunities, but only for the canny and well researched investor.
How property investment is changing in the capital cities
2016 saw Melbourne and Sydney continue to rise significantly compared to other Australian cities. Despite gloom and doom predictions - remember there were lots of experts claiming Melbourne would slump in 2016 and that Sydney would stagnate - both cities outperformed expectations. In fact, dwelling prices rose 15.5 percent in Sydney whilst Melbourne had a rise of 13.7 percent for the year.
Perth had experienced seven quarters of negative growth and is in major recovery mode after its boom and bust. However, it may well have reached the bottom and signs are that it’s slowly starting to ascend. In the last 3 months there has been a small increase in property prices for the first time in a long time. It’s still a long way back, but investors who can’t afford the big capital cities may start looking in this direction.
Brisbane started a gentle ascent and should continue to find value in housing and land appreciation, whilst inner city apartments may experience price correction as I detail in part two.
So how will 2017/2018 play out? I’m confident we’ll see rises in Sydney and Melbourne as demand and sentiment still remain positive. Brisbane investment property will continue to follow closely behind. The lending measures that may impact the market and sentiment are the move in interest rates from lenders separate to the Reserve Bank.
Look to the regions
Land in <a href="https://www.dpn.com.au/learn/market-updates/macarthur-the-sleeping-giant-of-sydney" target="_blank">South Western Sydney</a>, Wollongong and Newcastle remains very tight with strong local and investment demand helping sustain and increase prices of land.  These areas will only continue to grow in 2017. It’s not just investors but we’re seeing many Sydney “refugees” – that is younger owner-occupiers - who are moving to these areas in search of houses they can afford. Because all three areas are within coo-ee of Sydney and they all have their own strong infrastructure and local economy they are highly desirable and will continue to rise.
It’s worth noting that Brisbane is also showing signs of upward movement in land values in the metro area. And not just Brisbane itself, but even further out there’s some very strong opportunities as we recently noted in the case of <a href="https://www.dpn.com.au/learn/market-updates/why-springfield-brisbane-is-a-hot-investment" target="_blank">Springfield</a>.
Overall forecast
So what does all this tell us? Sam Khalil’s outlook is positive, there are a myriad of opportunities in the market. Which, as we know, are really <a href="https://www.dpn.com.au/learn/how-to-guides/what-is-a-property-market" target="_blank">many different markets</a>.
The caveat being that one has to be more selective as market forces could change due to macro economic factors and policy changes by the regulators as well as the oversupply of apartments. This apartment oversupply poses the greatest risk for investors. It’s a cautionary reminder of not buying through emotion. Or buying the wrong product at the wrong time.
There are some excellent prospects for property investment in the right areas that may not fit investors’ usual comfort zones. 2017/2018 will definitely be about hunting in different fields, certainly not in the usual areas that investors have been doing.
So there won’t be any quick rewards from backing the same winners of the past five years. The investors that will do well in the next 12 months will be those who put in the solid research and are prepared to look in other areas off their normal radar. As always: if you put in the work, the research and don’t automatically follow the herd, you can reap great rewards.
In part two, Sam Khalil investigates and dissects recent market changes that <a href="https://www.urban.com.au/expert-insights/investing/72360-sam-khalil-s-property-investment-outlook-part-two-winter-2017" target="_blank">property investors should be aware of</a>.  He covers lending policy, slowing development and challenges with land and apartment supply.
You can read the original article <a href="https://www.dpn.com.au/learn/market-updates/sam-khalil%E2%80%99s-property-investment-outlook-part-one-winter-2017" target="_blank">here</a>.
For more information from <a href="https://www.dpn.com.au/" target="_blank">DPN</a>.
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jchancellor-FAypfDUnLy

Sam Khalil’s property investment outlook - part one

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SPONSORED POST
As a professional writer, Bianca is no stranger to the occasional plot change.
With a long history in the performing arts; from dancing at the Atlanta Olympic Games Closing Ceremony with the Bangarra Dance Company (at just thirteen years of age); studying at one of Australia’s most prestigious acting schools, The Actors Centre Australia; to penning and producing her own comedic television pilot, Coulda Gone Pro – she didn’t exactly have property investing at the forefront of her mind.
However, after extensive travels pursuing her creative ventures that saw her setting up shop in Dublin, LA and London, Bianca felt it was time to settle down.
Now back in Sydney working as a Senior Copywriter for an international beauty company, while freelancing for Fairfax Media as a health and wellness writer, Bianca contemplated options to set herself up for the future. She was always aware of the traditional ideal of ‘security’: buying a home to live in. However, with a creative spirit and a love of travel, this didn’t seem like the right option. In addition, once Bianca crunched the numbers, they spoke for themselves. 
The dream of owning your own home used to mean living in it too. Not for Bianca, she is one of a new breed of investor, the 'rentvestor'. She has the freedom to live where she likes while her property investment pays a weekly income and continues to appreciate.
Bianca shares, “I didn’t want to commit to paying off a mortgage that left me with no money to enjoy life, when I could rent a great apartment within my budget, and still have my finances working for me. 
I was aware of property investing, and had been contemplating my options for some time. Although I had seen friends and family invest, and was now in a financial position to do so myself, I was still apprehensive. 
Being a first-time investor, there was a fear of the unknown because it was all new to me, so I kept putting it off as I didn’t want to lose all my money.” 
As the plot of Bianca’s story progressed, she took the plunge and consulted with DPN’s David Khalil. “David did the initial consultation. He was extremely thorough and tremendously patient, taking the time to clarify every detail and answer a myriad of questions.
“Ultimately, what spurred me on was that property investment could help me reach financial freedom.”
What finally encouraged Bianca to go ahead and invest, was that she saw David Khalil using the strategy personally – to great financial reward. Bianca points out: “The proof is in the pudding. The fact that Dave actually follows the strategies himself, gave me a lot of confidence. He wasn’t just telling me what to do; he had invested his own money, and followed the exact same strategies with impressive success.” 
Ultimately, what spurred her on was how she could see that property investment could one day help her reach financial freedom.  
DPN presented Bianca with a property investment solution 
David alerted Bianca to a house and land package in Currans Hill South-Western Sydney, a suburb of Manooka Valley, which had just become available. It is an area that DPN had identified as having excellent capital growth. In addition, the home was the DPN Casa Second Dual Income – two houses on the same block. The property not only boasts a family-friendly four-bedroom home, but also a chic two-bedroom house. Bianca says she “jumped on it right away” when it was presented to her. DPN assisted in getting a mortgage and recommended property managers.
A Dual Income property that pays two rents
The dual income property allows Bianca to enjoy the passive income from the second home, as well as the remarkable capital growth. The purchase price was $659,961 in Sept 2014, and is now valued at $840,000 in June 2017. That’s a sizeable increase of $180,039 in three years. On top of that, Bianca receives $890 per week in rental income. That works out at a 7 percent rental yield, significantly higher than the average for the suburb. 
<a href="https://www.propertyobserver.com.au/images/2017/06/28/Screen%20Shot%202017-06-28%20at%2012.07.40%20PM.png" target="_blank">Click to enlarge</a>
<img src="https://www.urban.com.au/images/2017/06/28/Screen%20Shot%202017-06-28%20at%2012.07.40%20PM.png" alt="">
"That's a 7 percent rental yield, significantly higher than the average for the suburb." 
So, she is enjoying a positive rental yield with the extra bite of the cherry in strong capital growth. “I’m very happy with my investment. I purchased before the area skyrocketed, and got a lot of bang for my buck.” 
Both Bianca’s brother and sister have also invested with DPN; with her brother so inspired by her success, that he invested in a Brisbane property.
Today, Bianca is a Senior Creative for a leading advertising agency, while occasionally getting back to her performance roots with presenting appearances on Seven’s ‘The Morning Show’, and Nine’s ‘Today’. Renting by the beach, Bianca enjoys seaside life while watching her investments grow.
You can read the original article <a href="https://www.dpn.com.au/learn/market-updates/writing-her-own-story" target="_blank">here</a>. 
For more information from <a href="https://www.dpn.com.au" target="_blank">DPN</a>.
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CASE STUDY: How to invest in property while renting

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SPONSORED POST
You can always find reasons why you shouldn’t invest in property. Property investment can seem like a big step and it’s easy to be fearful.  You’ll also hear lots of stories either from others or in the media, which may put you off.
So let’s break down some of the common myths floating about that can scare potential investors.
67 percent of investors using negative gearing have incomes of $80,000 or less.
1. You need a big deposit to invest in property
Not true. Property investment is no longer exclusively the domain of the wealthy. Smart investors who buy wisely, in high yielding areas with good capital growth, can have positively geared properties that cost them very little out of pocket. The Australian Tax Office figures found that 67 per cent of investors using negative gearing have incomes of $80,000 or less. This is not to say that all these investors are successful, but they have certainly been able to break into the market. 
Now, let’s look at the claim you need a giant deposit. Again, this isn’t correct. You can still get into the property market without a deposit by either leveraging off an existing home or getting a guarantor loan through relatives. Using super via an SMSF is another option.
Many property investors don’t own their own homes and so they rent in the suburb they want to live while having a portfolio somewhere else.
2. The market is skewed against first home buyers
There’s been a spate of media stories about how first time buyers are finding it increasingly difficult to break into the big property markets of Sydney and Melbourne. Property investors are blamed for this. However the reality is that there’s a myriad of factors. Basically Sydney and Melbourne are highly desirable places to live. Consequently population has skyrocketed; more global companies have shifted here and both cities are now firmly on the radar of international investors. The good news is that the demand to live in both cities is very unlikely to go down.
The other good news is that first home buyers are now becoming first time investors or “rentvestors”. The line between ‘first time buyers’ and ‘investors’ is very much blurred. The reality is many property investors don’t own their own homes and so they rent in the suburb they want to live while having a portfolio somewhere else.  This is the new reality for the majority of people in most capital cities of Australia as prices gallop to stratospheric levels.
3. Foreign investors make it harder to break in
This is a common complaint from locals especially in Sydney and Melbourne. Surely all the Asian investors buying up so much land and units in the cities is shutting out local investors? Actually, it’s not.
The Federal Government launched the Murray Inquiry in 2014 to look at this very issue. The inquiry found that: “foreign investment is regarded by industry experts as vital to increasing this supply. Rather than causing price pressures, the evidence suggests that foreign investments may actually help keep prices lower by increasing supply.”
It’s also worth noting that foreign investors are often playing in a different pool to local investors. They are restricted from buying established homes and can only buy newly developed properties.  This is why foreign investors are great for the construction industry, as they need more housing stock to be built.  So foreign investors help keep up a demand for supply and the market buoyant.
Your property investment, like the DPN Seconda, needs to be in a growing area with excellent infrastructure and a demand for rentals.
4. It’s best to buy in your local area
This is similar to the myth that says you should buy an investment home you’d like to live in yourself.  The reality is you may never see or visit your investment property. The property you invest in may be thousands of miles away, in another state. Investment can’t be an emotional decision where you buy a house in an area you like that you may want to live in. The investment needs to be based on cold hard facts and data. It needs to be a property with good capital growth in a growing area with excellent infrastructure and a demand for rentals. If it turns out that you have a property you do want to live in at some point, that’s a big bonus. However, as much as we get emotionally invested in properties, that can’t be part of the strategy.
Doing a renovation is no longer a guarantee that it will add exceptional value to the property.
5. Buy, renovate and sell for a quick profit
This idea of buying a rundown property, renovating and then selling quickly afterwards is out of date. Firstly, while the market may rise in the time you’ve bought and then sold, will it really have risen enough to cover all your costs? Plus, you’ll be hit with stamp duty and other property taxes, which will take the sugar out of any profits. We’re seeing now that the land is viewed far more favourably than the house that’s built on it. So that is why rundown, derelict houses on prime inner city land are often just left as they are and sold for a high price. Doing a renovation is no longer a guarantee that it will add exceptional value to the property. Finally, you’re missing out on the long-term capital growth. Good property investors think in the long term.
In conclusion, it’s dangerous to believe popular myths about property investment. No one ever made a fortune by listening to Chinese whispers. Any decision or strategy you make should be informed and backed by data and solid research.
To read the original article, <a href="https://www.dpn.com.au/learn/market-updates/5-myths-about-property-investment-busted" target="_blank">click here</a>.
For more information from <a href="https://www.dpn.com.au" target="_blank">DPN</a>.
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5 myths about property investment, busted!

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SPONSORED POST
Sam Khalil's property investment outlook investigates and dissects recent market changes that Australian property investors should be aware of.
In part one, Sam Khalil gave his thoughts on <a href="https://www.urban.com.au/expert-insights/investing/72358-sam-khalil-s-property-investment-outlook-part-one" target="_blank">Australian property investment in 2017</a>.  He looked at performance in the capital cities and identified regions that will continue to grow despite changing market forces. 
In part two, Sam investigates and dissects recent market changes that property investors should be aware of.
Stricter lending rules
There are far tighter lending guidelines than ever before. This has all been generated by ASIC, worried about high levels of risk in a red hot market.  It has trickled down to all the major lenders. CBA and Bankwest are refusing to refinance investors. While AMP will no longer offer new investor loans through their mortgage channel. Other lenders such as MyState have imposed a 12 basis point margin on all variable and fixed rates, for both investment and residential loans. Meanwhile APRA is bringing in a 10 percent speed limit for investors. There could be more restrictions on the horizon with APRA worried about the level of risk in the market.
Overall lenders are charging more for investment loans and then again for interest only. This will make people revaluate their lenders and question if they will purchase at all.
Foreigners locked out of the market
There has been a distinct clamping down on foreign investment over the last year. Westpac is not writing loans for non-residents, ANZ is no longer lending to non-residents and the CBA is following suit. Other banks have similar tight restrictions. The sum effect has been that foreign investors are walking away in droves, many unable to get funding. This in turn will have a flow on effect to the construction industry, impacting on the number of new builds. There’s also speculation that foreign investors will favour apartments over houses even more than they currently do because they need a lesser deposit.
Development slowing down
Developers have seen significant tightening in lending for projects. This has slowed down supply, which may be a stabilising measure to avoid any large property bubble bursting.  Banks have especially tightened down on lending to residential property developers with an oversupply of apartments and high-rise towers an especial concern. This has led to many developers to put projects on hold and others look to for alternate funding.
Shortage of land
There’s a desperate demand for new land supply in <a href="https://www.dpn.com.au/learn/market-updates/macarthur-the-sleeping-giant-of-sydney" target="_blank">Sydney’s fringe</a> as well as Wollongong and Newcastle. Developers are finding it extremely difficult to process land through local councils and then register the land. We must hope that the NSW government can fast track services to bring land to the market sooner so pricing doesn’t continue to increase dramatically due to lack of supply. This is the primary issue affecting housing affordability: land supply and how quickly it arrives to the market. Remember there’s always a lag between development and construction and the frantic nature of the market itself.
Apartment oversupply
There’s a real concern about apartment oversupply in the major capital cities, especially in Melbourne. The Commonwealth Bank estimates 140,000 new apartments will be built in the city from 2016 to 2018. This oversupply will ultimately lead to a drop in prices. Some experts are anticipating drastic drops of up to 20 percent in some suburbs by 2019.  So projected growth for apartments in many major cities has hit its peak and is estimated to correct or be sideways for next 5-8 years, with owners losing money and not getting capital growth. So there’s a clear message here: be very wary of apartment purchasing for the next few years. Research the area and project meticulously.
The global market
Well, it’s almost impossible not to talk about the political upheavals last year. From Brexit through to Trump it was a year of surprises. Trump’s avowal to increase spending around infrastructure and his distancing from the Asia trade pacts will certainly have an effect on Australia. His promise to pour money into defence and infrastructure will act as a fiscal stimulus. It’ll also mean lots of capital fleeing Australia and going into the USA. Potentially Australia will have to lift interest rates to compete and keep capital here. This in turn will effect market sentiment. Properties and projects that are vulnerable will be exposed awfully quickly.
You can read the original article <a href="https://www.dpn.com.au/learn/market-updates/sam-khalil%E2%80%99s-property-investment-outlook-part-two-winter-2017" target="_blank">here</a>.
For more information from <a href="https://www.dpn.com.au/" target="_blank">DPN</a>.
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Sam Khalil’s property investment outlook - part two

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SPONSORED POST
DPN has launched a range of architecturally designed investment homes, including a dual income property, to be built to a standard that rivals or surpasses owner-occupied homes. 
One of the common issues property investors have when purchasing is that they end up buying a property they don’t actually like.
In an ideal world, investors would buy properties they want to live in. However, more often than not, investors buy houses that are ageing mutton dressed as lamb. This is not through choice but what’s on the market. Perhaps the house has a hideously outdated kitchen, thin layers of paint hiding decades of mould or poorly designed living spaces. Or, as is often the case, they’re project homes, quickly knocked out without thought to form or function.
Investors see these far too often.
Yet it has clearly shown that a high quality, highly livable property will always be a better investment bet for attracting renters. There are a few simple reasons for this. If you love and enjoy the space you live in, you’ll stay there for the long term. This means rental stability. The better the quality home means a better quality renter. Renters who are happy living in a property are more likely to take care of it.
"Renters who are happy living in a property are more likely to take good care of it and stay longer."
Introducing DPN's architecturally designed investment properties
This may sound obvious, yet what has long been missing is a product that can weave together a good liveable environment with one that maximises capital returns. But this has all changed. DPN has created an innovative property that pulls off the rare trick of pleasing both the investor and the renter. It’s called the DPN Casa series. DPN Casa is a range of investment homes that are architecturally designed to a standard that rivals and even surpasses owner-occupied homes. Included in the DPN range is a Designer Series 5 bedroom home and a <a href="https://www.dpn.com.au/promo/dual" target="_blank">Dual Income</a> home.
DPN Casa also has owner-occupiers interested offering a boutique alternative to a project home at an affordable price. Owner-occupiers can build DPN Casa properties on their own land.
"What makes these properties stand out is the meticulous thought that has gone into the design. Over two years of careful research and work was spent with architects to come up with a designed home that is universally attractive."
What differentiates them from other project homes on the market?
DPN’s Director of Property, Sean Blattman, explains: “Clean lines, efficient use of space and loads of natural light. Large stacking glazed doors and an excellent interface between indoors and outdoors make them very distinctive from what you find out there. The form and functions of the designs are second to none.”
<img src="https://www.urban.com.au/images/2017/06/30/Screen%20Shot%202017-06-30%20at%201.51.19%20PM.png" alt=""> 
<a href="https://www.directpropertynetwork.com.au/casa/dual-income" target="_blank">DPN Casa: Dual Income.  One Property.Two Rents™</a>
DPN Casa includes within its range a dual income home.
It’s a sophisticated architectural design that allows for two self-contained residences on the same block of land.  They function as two entirely separate and private dwellings and use the space superbly. These homes are often cash-flow positive by a significant amount from day one of tenancy.
The key point to remember is the painstaking time and effort that has gone into creating these designs. It has also been thought out in terms of a holistic journey for both the renter and the investor. Blattman explains:
“The finished home should complete the property investment journey for a DPN customer. It’s the culmination of a customer experience that begins from the first contact they have with DPN to arranging finance, construction of the home, having it tenanted, then looking forward to the next purchase.”
The homes all come with the usual building guarantees and warranties that are important for project homes. However, this product goes even further to ensure peace of mind. Blattman points out: “We also provide a fixed priced guarantee - that the price will not increase during construction and that everything included is ready for rental, with no surprise costs. DPN also work with builders that provide a fixed build time with liquidated damages if the home is not delivered on time. This varies from 16 - 26 weeks.”
The DPN Dual Income homes can be built in New South Wales and Queensland at this stage, although our coverage is expanding. DPN Dual Income homes are available as a house and land package or as a build on your own land subject to meeting site survey requirements.
<img src="https://www.urban.com.au/images/2017/06/30/Screen%20Shot%202017-06-30%20at%201.52.29%20PM.png" alt="">
<a href="https://www.directpropertynetwork.com.au" target="_blank">DPN Casa: Designer Series 5 bedroom home</a>
Visually, the home looks stunning. It has a beautiful flow, uses natural light to its absolute best effect and has an exquisite design that remains efficient in terms of its size. A clever use of space means that although the home is technically using the blueprint of a 4 bedroom house, you end up with a five bedroom home and an additional living area - for a similar price. 
A recent Domain survey found that 71% of Australian renters identify the number of bedrooms in a rental property as one of the most important factors in selecting a home. Ample storage also ranked ninth on the must-have list. The DPN Designer 5 bedroom home has all this and more.
You can read the original article <a href="https://www.dpn.com.au/learn/market-updates/an-investment-property-you-ll-want-to-live-in" target="_blank">here</a>.
For more information from <a href="https://www.directpropertynetwork.com.au" target="_blank">DPN</a>. 
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An investment property you’ll want to live in

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Property investors have been pampered with an assortment of developments throughout Sydney over the last three years. Developments that have seen in the most part vacancy rates as low as 1.2%. 
Adding to the investors fortune are almost no-vacancy periods. High capital growth and low vacancy is an investors dream but how long will and can the party last? 
As I drive around Sydney in general and meet with clients in coffee shops, I have been noticing the emergence of the For Lease signboard. In some apartment buildings there are two, even three signboards adorning their front landscape. A sight not witnessed for some time.
As many investors have been feasting on the high property yields, many may drop their guard with respect to the upcoming oversupply and less demand for rental property. Current reports are now emerging with vacancy rate figures on the rise.
With the rise in vacancy periods comes the upsurge of the For Lease signboard - a symbol that should bring terror to the property investor. I am of the opinion that these signboards will grow in numbers, as they pop up like mushrooms in the front yards of older buildings. Tenants will migrate from the older apartment blocks to those newly built. 
There are other reports floating around that we have 90,000 off-the-plan purchases yet to be completed over the following 12 months. Again, I’m of the opinion the numbers quoted by the mainstream are conservative figures. It will be no surprise to finally calculate 130,000 plus apartments being built in the capital cities along the east coast of Australia. 
But wait! There is a hell of a lot more in planning and proposal stages. When I say a lot, I don’t just mean tens of thousands; let us just say that the Parramatta Rd corridor will see close to 100,000, if not more. 
What will set the trend for 2016 will be how quickly the tens of thousands of apartments will be occupied as they are completed in the following there to four months and what rental-incomes or returns are achieved. But not taking into account the rental guarantees promised by agents and developers.  
What I foresee will take place in the near future:
<ul>
<li>We will witness a migration of tenants from older unit blocks, to newly completed unit blocks. </li>
<li>Rents will be reduced to those promised to investors. However, although tenants will pay much less, the agents and developers will make up the difference. Happy-days for the renters. </li>
<li>Rental expectations will be adjusted even lower in the older apartment blocks to counter-act the mass exodus of tenants vacating the older dwellings.</li>
<li>Unit blocks that are 3 years and older will begin to creep down in value in some parts of Sydney and in others it will be a sudden drop.  </li>
</ul>
Why is this all important? 
If you are an investor and you believe you may be in an area where there is a high level of construction, then it’s time you begin to lock your tenants into a long term tenancy period. Perhaps even drop the rent a little to gain long term peace of mind. 
A vacancy-plan strategy will need to be put in place with your property management team - a plan that monitors both rental demand and vacancy periods in the area. 
Furthermore, right now is not the time to be looking at increasing rents in most parts of Sydney. There are only a few areas in Sydney that are coping with rental increases. With a smorgasbord of rental property available and more to come, tenants will move to newer and cheaper accommodation. 
What's the net result?
The net result for many that moved into the property investment game in the last 18 months will be very painful. Needless to say, a large number of investors that have borrowed equity against established dwellings to grow their property-portfolio will also find the near future somewhat turbulent. 
 
EDWIN ALMEIDA is licensee in charge of <a href="https://www.just-think.com.au/" target="_blank">Just Think Real Estate</a>.<a href="https://www.just-thin.com.au/"> </a>
He is also the creator of <a href="https://www.youtube.com/user/JustThinkProperty" target="_blank">Oz Real Estate.TV</a> and a presenter for <a href="https://propertyinvestingvault.com/" target="_blank">propertyinvestingvault.com</a>.
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The rise of the For Lease signboard: Edwin Almeida

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Think about these five facts: 
1. China is now Australia’s biggest trading partner. 
2. Bloomberg says our links to China have quadrupled in five years. 
3. Last year, Aussies sent 36 percent of our exports to China. 
4. That’s more than any country in the Organisation for Economic Cooperation and Development.
5. China invested, reports the FIRB, $12.5 billion in Australian real estate last year. 
When I read all this, the first thing that pops into my head is, “Thank goodness for China.”
If there were no China, Australia would have missed out on the boom of the last decade, which has been one of the greatest wealth-generators in our history.
It was bigger than just resources, but during the boom the mining companies alone invested four times more money in Australia than the US transferred to Europe in the entire post-war Marshall Plan. 
In the property sector, many of the new buildings that have gone up in suburbs all over the country since the year 2000 simply wouldn’t have been built without China. Developers, the RBA and the government’s recent Parliamentary inquiry all agree that off-the-plan sales to Chinese buyers have been the key to unlocking new housing supply.
After feeling good for a few moments, a question then occurs to me. It’s this: “What happens now?”
What does the recent plunge in China’s stock market means for Australian real estate?
There are two ways to answer that. 
The first is with the short-term answer. Over the past month, Chinese demand for international property has remained normal. No high peaks. No deep plunges.  
At Juwai.com, we’ve seen it in the numbers of people coming to our website to make inquiries to agents. We’ve seen it in the deals that agents report they are making. And, we’ve seen it in our call center, where our team responds by phone, social media and email to buyer questions. 
Some people expected international property buying to rocket upwards as Chinese rushed to escape their gyrating stock market. But there’s been no change. 
The second way to answer the question is by looking at the long term. 
Over the long term, the turmoil in China’s equities market have given Chinese one less reason to invest in equities and one more to invest in international real estate, which just goes from strength to strength.
Australia’s currency has plummeted, giving Chinese consumers a 15% to 20% boost in their real estate buying power. (Of course, it’s been less fun for those who bought their Australian investment five years ago and since seen it’s value in Chinese yuan drop.)
The government is, in fact, encouraging Chinese families and companies to invest in places like Australia. 
China’s low savings account interest rates mean that overseas investment can be a better bet for generating returns for the country’s huge savings reserves. 
So over the short run, Chinese buying has been stable and in future years it will only grow.
 
Andrew Taylor is the founder and chief executive officer of sales and marketing at <a href="https://www.juwai.com/" target="_blank">Juwai.com</a>, the number-one Chinese real estate portal for property in Australia and around the world. Find out more about him <a href="https://list.juwai.com/" target="_blank">here</a>. 
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What China’s stock market meltdown means for Australian real estate: Juwai's Andrew Taylor

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ASIC has obtained an urgent injunction in the Federal Court of Australia against Macro Realty Developments Pty Ltd (Macro), Property Tuition Pty Ltd (21st Century Property) and Education Holdings Pty Ltd (21st Century Education) from promoting and marketing a proposed Pilbara property investment.
A seminar was to be held for prospective investors on 10 September 2015.
ASIC alleges that the proposed Pilbara property investment was marketed and promoted by 21st Century Property and 21st Century Education using the tagline "Do you know how to buy Australian property, no money down?".
The proposed investment was to involve investors being appointed as directors and shareholders of a company and creating a trust. Investors were then to cause that company to acquire certain properties from Macro in Newman Estate, Western Australia. The investors were to be paid a director's fee but agreed that Macro would be the sole decision-maker for the company. 
ASIC alleges that by agreeing to become a director of a company where Macro will remain the sole decision-maker for all business associated with the company, 21st Century and Macro are counselling and procuring investors to contravene their director's duties under the Corporations Act
ASIC also alleges that the investment documents in relation to the proposed Pilbara property investment are misleading and deceptive, and that the investment proposal is a financial product.
The matter is set down for final hearing on 26 October 2015.
ASIC has also issued proceedings in the Federal Court of Australia against 21st Century Property and 21st Century Education in relation to their promotion and sale of interests to investors in <a href="/news/44806-jamie-mcintyre-s-21st-century-group-facing-asic-proceedings" target="_blank">five land banking schemes</a>.
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ASIC granted injunction against proposed Pilbara property investment

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High rise residential developer Tim Gurner has bought two Hamilton, Brisbane riverfront sites for a $170 million development.
They take his Brisbane project pipeline to $1 billion plus.
The Melbourne developer secured 80 and 92 Kingsford Smith Drive for about $13 million, telling the Australian Financial Review they "present an incredible opportunity." 
He suggests the sites, located within three kilometres of the CBD, are of an iconic nature.
Elenberg Fraser is designing the new project which will include 280 luxury apartments.
Gurner's most recent purchase were two sites in Brisbane's Fortitude Valley.
His initial project FV has already seen around 1000 apartments worth $650 million sold. 
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