1 Introduction:. In Recent Years, More And More Foreign

1) When it comes to investing in property, it is generally a huge decision to be made by Australian households. What are the important factors that a person needs to consider before going ahead with such purchase?

First of all, from 2008 to 2015, property prices of all capital cities in Australia have increased rapidly. People have had obsession with buying houses. At the same time,

John DeRight & Judy DeRight both members of the long standing DeRight family based in Arlington, Virginia are looking to diversify their portfolio of investments and are contemplating investing in real estate to achieve their investment goal. Both are in a different stages of their life and are considering one of the four real

Nowadays, investing in real estate is one of the lucrative commercial sectors that will provide large chances for an investor to generate cash with no trouble. Real estate is a commercial industry that, over time, has dealt with very small threats or failures. This is measured in such a way that investing in real estate is very much gainful and favorable when assessed to divide selling and buying cash or perhaps trading gold, silver, or even platinum.

Macroeconomics is an excellent tool for the analysis of the housing industry as something like a capital good, as a home is considered to be, cannot easily be studied in a short-term platform. Real estate is a good that costs several times more than an average persons annual income, in the United States that number is typically 7 times as much, and in the United Kingdom that number is 14 times as much. Several factors of both supply and demand directly impact the housing market on a macroeconomic scale. (Business Economics, 1)

When searching for literature to review, it quickly became evident that there was a distinct lack of contemporary scholarly writing surrounding the direct issue of foreign investment in the London property market. In contrast, there are many news articles and publications that exist which identify the issue. For the purpose of this section, scholarly literature bearing on investment in the round and the property market in particular will be reviewed to provide context, while news articles and publications to

The Australian economy is reliant on three key sectors: services, housing, and mining. The services sector employs the largest percentages of Australians – around 80 percent – and is responsible for approximately 70 percent of the country’s GDP (Australian Bureau of Statistics, 2010). With jobs in a variety of specific industries, this sector drives the success of the Australian economy. The housing sector is experiencing unprecedented growth leading to concerns over a potential asset bubble. An increase in the amount

Demand for housing, particularly in Sydney and Melbourne, greatly outnumbers the supply available. Simple supply/demand economics tells us that this undersupply of property in the face of overwhelming demand will cause inflation. From March 2014 to March 2015, Sydney saw an average property price increase of 13.1% (ABS: Residential Property Price Indexes 2015). Currently, the RBA’s reaction to this is to play it safe by keeping cash rates at 2% (RBA: Monetary Policy Decision July 2015). The RBA want growth to be sustainable and long term on the Australian economy during a difficult time, but how does this affect the housing market? This lowers the risk of defaulted loans for buyers, particularly on fixed interest rate mortgages. ASIC chariman Greg Hedcraft says that Australia is experiencing a similar housing bubble to the U.S. pre GFC. This was caused by high interest rates and borrowers defaulting loans due to unexpected heightened interest rates, crushing the U.S. (and international) economy. However the RBAs recent interest rate decisions have been heavily criticised, with economists believing that these low interest rates, high consumer incentive to ‘buy now’, and predicted growing unemployment rates – peaking at 6.5% (Federal Budget 2015) could lead to future mortgage defaults and a large debt problem. Australia’s current economic state involving one

How and why is the housing in Australia growing rapidly and how effective are the government ' s policies to control it?

The real estate market of Australia tries to develop and emerge continuously. As an outcome, many a number of Australians invest on properties without any hesitant. But, the basic concepts in relation with the real estate industry are still fairly new to several consumers and are also easily confused even with the most common terms utilized in the industry.

The research shows that China has become enormously important to Australia’s economy as its largest export destination, a rapid source of growth in inbound international tourism and migration, plus a strong source of foreign investment. (Leigh W, 2015) Due to report of Australia’s government records, since 30 June 2015, 28.2% of Australia’s estimated resident population was born overseas. And the number of people who comes from china is the third largest group of Australia’s estimated resident population group (excluding people born in Australia). (Migration, 2015) as we know, ever since 1980s, China’s students flock into Australia to study. After they finished their study, quite a fair amount of them decide to get Australia’s PR or citizenship and stay in Australia. If people decide to stay, they need a place to live. So these students certainly brought huge impact to Australia’s real-estate industry. The impact of China’s imigrat on Australian property has been both indirect through the impact on the broader economy and direct through capital flows and Chinese developers building Australian businesses. (Leigh W, 2015) so, understanding the new generation of China’s immigrate or will be is significant to Australia’s real estate company if they want to be successful. And this literature review is focusing on analysis the characteristics of the chosen target market - China’s “Me” generation.

To what extent do the Singapore Government’s policies on housing and immigration, help to increase the demand of the private property sector in the housing market.

After researching the foreign markets, our department proposes that Canada would be our direction to go with to expand our business. The selection that we made is due to many factors. One of the factors involved is that Canada’s housing starts for 2012 is down by only percentage points. (Centre for the Study of Living Standards, 2012) This allows us to believe that the economy is still strong in the Canadian foreign market. There is new construction going on in Canada and there is potential for the market to go back up.

In recent years, the investment scales of foreign business are increasing stably. In 2001, the foreign direct investment was 46.8 billion dollars. In 2005, it has arrived at 85.5 billion dollars. At the same time, the form and field has changed diversification. With the China economy high speed developing and enlarging the industry field, the foreign investment will related to communication equipment, computer, bank service, insurance service, etc. so it will also increase for a long time.

Market share in the real estate business in Singapore is mainly capitalized by few big players such as City Development Limited, CapitaLand and Keppel Land. If any multi-national real estate company approaches to invest here, they will be restricted to a marginal shareholding in the new companies. A new entrant will be therefore a private Singaporean company, and as such the barriers to entry is high in the real estate business.