Did you know that investing interstate is something that few Australians do? No matter how much research you do, there is always the concern that the property you invest in won’t perform. Add an interstate location to the mix – meaning you’re not able to see, visit and drive by, can create enough ‘fear of the unknown’ to stop investors from taking any action at all. It leads many investors to only invest in their own backyard. How can you make sure you’re not one of these who lose out? Michael Yardney helps with some solid suggestions.

Rob Balanda from MBA Lawyers sees many inexperienced developers come to grief over easements. They may sound innocuous but they can mean the difference between making money and not or even being able to develop the site. Rob talks about what you can and can’t do with easements.

You might have seen the ads on TV that promote a website that offers sellers the opportunity to get assistance to select the best agent to sell their property. Mixed with that is the inference that if you go with them you will get up to $100,000 over your reserve. The site is Open Agent. There a number of similar sites offering the same inducements. We look at those promises today, talk to an agent about them and ask the Open Agent CEO to respond.

Chinese property buying power in Australia has surged over the last five years. Even though we are paying more for property, mainland Chinese are paying less – up to $70,000. Hear why as we talk to the chief of the biggest Chinese buyers website in the world.

We talk to an interior designer who shares some do’s and don’ts if you are preparing to sell a property.

Also hear that Chinese are not the only overseas buyers eyeing off Australian property and why Tim Lawless says lot sizes are reducing.

 

Transcripts:
Charles Pittar
Kevin:  Hi once again. Of course, despite rising property prices in most Australian capital cities, the Juwai.com Chinese purchasing power index for Australia shows that buyers holding yuan in the first quarter of 2016 have the equivalent of more than $70,000 (AUD) in increased purchasing power when buying an average priced Australian home, compared to four years ago. That’s staggering information. Joining me to discuss that is the CEO for Juwai.com, Charles Pittar.

Charles, what impact is this having – that you’re seeing – for the popularity of Australian property?

Charles:  Price is always important for a Chinese investor. Australia has been a very popular destination for a number of years, and now with a currency devaluation and the corresponding increase in purchasing power from the Chinese consumer, it essentially makes Australian property more affordable and more attractive.

Kevin:  What sort of affordability levels are the average Chinese buyers looking at? What sort of purchasing power do they have, Charles?

Charles:  It’s a good question. I think there is a tendency for people to assume that every Chinese buyer is looking for a multimillion dollar, very expensive property, but the reality is at Juwai, we’re getting 2.5 million unique visitors to our site every month and on average, 70% of our visitors are looking between $500,000 (USD) and $1.5 million (USD).

Obviously, that means 30% are looking for more, so luxury properties are still very appealing – there is demand there, clearly – but $500,000 to $1.5 million corresponds to 70% of our audience.

Kevin:  What are you seeing through your website as to what makes a property popular for Chinese buyers? Is it the location?

Charles:  Over the years that we’ve been in operation, we’ve found that there are four main motivations as to why people come to us. The first motivation is investment, and clearly as the Australian dollar devalues, that becomes more attractive.

Lifestyle is very important. Outbound travel from China internationally is at record highs, and clearly, we get a lot of visitors to Australia.