Posts Tagged ‘Real Estate’

China issues: what the general media will not tell you

Posted: May 30, 2014 in Uncategorized
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The blog of the Wall Street Journal reports that in Season Joy City (reported as a remote Bejing suburb – in reality Tripadvisor says that is the 11th Bejin attraction with one of the best shopping centres) offer “buy one floor. receive a free floor” plus no down payment for two and a half week and free kitchen and 4 air conditioning units.

Barclays says that the downturn is more serious than 2008. Gavekal (fund manager with Bejing research house) says that developers are in a real hurry to sell.

On my behalf, I was talking to a friend that does business with China (in relation to property fittings) and deals with approximately 50 factories. They were all begging him for new work.

If these kind of  news hit the mainstream media….this rally would stop in a second.

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Australian real estate: hold on to your friendly Chinese neighbour

Posted: March 21, 2014 in Uncategorized
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China is having a major problem and already in Hong Kong some of the mansion bought by Chinese millionaires have been sold for 50% less as the rich have to sell fast to avoid bankruptcy (HSBC stress test).

So what?

Well the statistic says clearly that the latest surge in Australian real estate price has been driven by Chinese buyers and speculators (it is very easy to avoid the foreign ownership rules). Credit Suisse estimates that Chinese investor spent USD24 billion in the Australian Real Estate in the last 7 years (mainly Sydney and Melbourne)

So if the turmoil in China continues, the Chinese will start selling guess what…after Hong Kong there is Australia and Canada.

So if you do not want the value of your real estate to keep where it is or growing….don’t let the Chinese neighbour go home.

PS lot of the houses bought had a collateral …commodities…so it would be a vicious circle