NAB restricts lending in 34 Sydney bubble suburbs

NAB has started to restrict lending to portions of the Sydney property bubble that are exhibiting characteristics that may indicate future deterioration in credit risk. It has decided to cap the maximum loan to value ratio (LVR) in these higher risk suburbs (shown below) to 80 per cent.

2000 Sydney CBD
2008 Chippendale, Darlington
2017 Waterloo, Zetland
2019 Banksmeadow, Botany
2037 Forest Lodge, Glebe
2067 Chatswood, Chatswood West
2112 Denistone East, Putney, Ryde
2113 East Ryde, Macquarie Park, North Ryde
2118 Carlingford
2127 Newington, Sydney Olympic Park, Wentworth Point
2140 Homebush, Homebush West
2141 Barala, Lidcombe, Rockwood
2142 Camellia, Clyde, Granville, Holroyd, Rosehill, South Granville
2144 Auburn
2146 Toongabbie, Old Toongabbie
2150 Harris Park, Parramatta
2151 North Rocks, North Parramatta
2153 Baulkham Hills, Bella Vista, Winston Hills
2166 Cabramatta, Cabramatta West, Canley Vale/Heights, Lansvale
2168 Ashcroft, Busby, Cartwright, Green Valley
2194 Campsie
2195 Lakemba, Wiley Park
2199 Yagoona
2205 Arncliffe, Turrella, Wolli Creek
2208 Kingsgrove
2209 Beverly Hills, Narwee
2210 Lagarno, Peakhurst, Peakhurst Heights, Riverwood
2211 Padstow, Padstow Heights
2220 Hurstville, Hurstville Grove
2222 Penshurst
2566 Varroville, Bow Bowing, Minto, Raby, St Andrews
2767 Bungarribee, Doonside, Woodcroft
2768 Glenwood, Parklea, Stanhope Gardens
2769 The Ponds

The cap has been applied to all new loans written since the 18th September 2015.

» ‘Restricted postcodes’: NAB names suburbs where credit risk getting worse – The Sydney Morning Herald, 28th September 2015.
» NAB puts 40 postcodes on credit watchlist – The Sydney Morning Herald, 18th August 2015


  1. This is probably for OO as well as investment loans. The other banks adjusted only for investment loans I believe.

  2. I don’t expect to see any major drops for now. Let’s see if the bankers mate (sorry, I mean, Prime Minister) can win the next election. Then hand out a massive cheque…..

    Just like Paulson did 🙁

  3. Thats nearly all of Sydney!!
    I’ve just returned from Perth and shocked at the amount of FOR LEASE and FOR SALE signs.
    Firstly the drive from the airport into the CBD, then I went for a walk from east Perth down Adeliade Terrace to Kings Park, for someone who doesn’t live in Perth, it was a massive eye opener. Virtually every second property is either for sale, lease or both, the taxi driver said “it’s Perth, it goes up and down so should come good next year”. I think for those who live in Perth, they have got accustom to seeing this, but for a visitor I have no doubt when 4,5,6,7 story buildings, whole floors are for sale, lease or both things are far more worse then people want to believe and I’m not talking the odd building, it’s every second building in every street.

  4. Excellent news for first home buyers. This action will force the market to correct, with price changes particularly older properties in need of modernisation and/or properties in rural locations. Given the withdrawal of loans by most lenders to investors, the opportunities can only increase for first home buyers.

  5. Areas where borrowing has hit its max and where wage decline and/or unemployment is soon to be felt. CBD and Glebe are the only suburbs I’d call wealthy, the rest working or middle class.

    Really bad news is usually broken softly in small doses.

  6. They talked about this on CH7 Sunrise this morning, however rather than discuss what this is all really about (NAB foreseeing risk and unsustainable prices) they interviewed someone from Westpac and a guest who was a young girl they called a property mogul because she is 24 and has 2 mortgages. It was basically a property porn story about how you can use equity in your home as a deposit for another.

  7. I’ve been looking to purchase around a few of these suburbs on the list. In the last few weeks I’ve received several unsolicited calls from agents (where they got my detIls from open homes a few months back) telling me about their new offerings…seems to me desperation tactics.

  8. You couldn’t give me 200k on top of what I have to buy into this market….people tend to feel better for paying exuburant prices for items because it makes them feel like high rollers…..dickheads! What a bunch of suckers….deserve what’s coming…sheer greed

  9. @ Me

    The issue is though as people get older they feel a need to buy a home as they start a family. I agree with you that this market is completely over priced and here in WA redundancies are occurring in many businesses.

  10. I googled Australia RE boom and came across this website hoping to find some answers.
    First timer.

    I just returned home (HK) from a quick visit to Melbourne, haven’t been there for 3 years.

    These are my impressions and thoughts, my family and friends looked at me as if i came out of space.

    Tremendous amount of CBD apartments already over built, keep away from that bomb. whoever is renting has a lovely oversupply of brand new trendy apartments.
    whoever bought either bought free from economical short and medium term value (meaning now the rent paid makes no valuable ROI, in 5-10 years probably the same, since so much is still coming up, and if Mel does grow to 8M residents as expected by 2030~ (long term) owning an apartment in CBD will be equivalent to owning something in Manhattan and does make some sense.
    Except that, the logic is either Visa, or general security of owning something in a 1st world Westernized city.

    Being living in Asian cities for 11 years: tokyo, Shanghai and HK, might make me bias but many of the buyers are Urban Asians, very familiar with this type of living and for them high quality buildings with high density and great proximity to services/station ticks all the boxes as great investments and/or suitable own usage.
    moreover the rush to Australian cities, with emphasis on the (soon to be) megalopolis of MEL and SYD is exactly what what they experienced back home in the past 15-20 years.
    meaning whoever didn’t buy in HK/SH and shouted bubble bubble, can’t even afford to rent (sit) on the fence no more, yet alone to buy.
    Meaning, they feel they are still buying low, not because they predict aussie salaries will just to 200K but because more CBD space is extremely limited and you buy today because tomorrow their wont be any left.


    The distinction between CBD lifestyle and the rest of Australia is clear (MEL CBD on a good evening can remind me of an urban fantasy of a Bejinger or a HongKonger).

    Meaning the immigration growth is only happening in the highly density parts of Australia to start with +existing strong suburbs and their surrounding.

    No “new money” is pouring into Ballarat and Hobart etc, and for every Chinese buying in Adelaide, 10+ buy in mel or Sydney, and that mentality will not change, but buying trends will only spread slightly to cheaper suburbs.

    Saying that, We tend to think that this must end someday, but the fact is that probably another Billion+ people in Asia alone earn the equivalent of what we call the 100K mark and if even 1-2% of them decide to make the move, this country can double it’s population and they can afford doing that.

    This huge empty and healthy land (25M), the size of the USA (300M) is just lying in their backyard,
    they are convinced that even now, they are still early to hop on the boat.

    Saying that….

    once someone is here, and the Actual Aussies that are here.
    I was driving around and all i heard and saw was advertisements for property and construction sites all over.
    Meaning the mining boom is over, now this single sector economy is switched to RE.
    That is the unhealthiest thing that can ever be to an economy.
    No diversity, meaning it just can’t be sustainable if the economical circle is builders (borrowers) building, families (borrowers) are buying and tradies and RE agents maintaining the system (at extremely overpriced charges).

    What do other people in this country do?
    What is Australia selling to the world?
    What do people actually work at?

    The world is such a flat economy right now, services are outsourced and automated, the High streets are semi abandoned decorated with coffee shops/restaurants and nail/hair/massage shops mostly.
    Retail has lost to online.
    What’s left?

    Sorry for the bi-polar thought, as I said, i returned confused from Australia.

    To sum it up, what i think I know is:
    if Asia stays stable and the world stays crazy, Australia benefits, as it’s the default retreat for those, though it’s subject to a low Aussie (like today).

    If Aussie currency jumps again, as it did in 2011~ market cools down and then it’s back to depend on local investors and that’s tricky because i see no sustainable economy.

  11. im sorry but until we have an event more aggressive than the GFC from 08 then I will not be convinced that the system is ready to get real….record debt in a lot of areas especially RE . Central Bank have just kicked the can down the road especially the Fed, The financial system will not survive unless living standards are compromised and it is happening more and more. I don’t believe what the cheerleaders are singing

  12. We will have an event more aggressive than the GFC as there was no ‘solution’ or change of behaviour, simply a doubling down on the bet which caused the problem. The major differences between GFC part I and the coming GFC part II are that there are 75% less market makers than there used to be (the rest got wiped out in GFC I) and the the debt burden has mushroomed. When GFC II hits and people try to escape the markets will seize up and then prices will collapse.

    Asia will not come to the rescue as China has only about nine months left before its economy hits a brick wall. This is a mathematical certainty (see Anne Stevenson-Yang, Charlene Chu). As Robert Peston states “There is no example in history of that kind of debt explosion not leading to tears before bedtime”.
    It is worth remembering at the time of GFC I Nouriel Roubini stated that this crisis was worse than the great depression and there were two options: work in a coordinated fashion to keep all economies operating while you reform them and fix the problems in the system which led to the meltdown OR repeat the mistakes of the past with every country weakening their currencies to try and trade their way out and export the problems elsewhere. We have chosen the later option.

    This will be severe. The market collapse will suck capital from Asia and see the USD skyrocket as a desperate safe haven and Chinas debt burden become debilitating as it is dollar denominated.

    Australian housing market bubble is only maintained at present by a massive devaluation in currency and increase in volume of export minerals in the face of price collapse. When demand for those resources collapses as well, the ‘hollowed out’ Australian economy will see a severe downturn and house price collapse. Privately people are taking about one of the big four being at risk of failing due to the level of mortgage debt. Also factor in 40% of the equity in the Australian market being from overseas looking for a return greater than the 0.5% in some markets … when this capital repatriation begins you will see a major freeze in the available credit. Available credit is the main driver of housing markets and directly linked to house price increase. The tide is about to go out and a lot of people are going to be found swimming naked 🙂
    On the bright side it is a nice day and the world is unlikely to end.

  13. This website is a pit of negativity.

    I liked it back in 2007, I thought it was the shit when the financial crisis happened.

    The Sydney market what? staggered for a few month and went right back to doing its thing. I now cant afford to buy the property I could have back then, not even get into the same area. And until this day, almost 10 years now these scumbags predict a crash that would never come.

    I advice to all of you here, dont listen to this bullshit about other countries. Dont listen to all these economics shit. If you see a nice house for your family, and you can afford it and you can take the mortgage. Buy it. Live in it. Be happy.

  14. @ Pissed Off.
    ” If you see a nice house for your family, and you can afford it and you can take the mortgage. Buy it. Live in it. Be happy.”

    Of course what was wrong with us average middle class blokes? all these negativity ?. Now After reading your comment I feel very happy to take out an average mortgage of $800,000 or $900,000 or even a $1 million for a third world quality 3 bedrooms house and I will live in it happily ever after. What can possibly go wrong?

    I wonder if I showed your comment to my bankrupted economical fugitive Irish friend what he will advice me?

  15. This website is a pit of negativity.

    Sounds like you’re up to your eyeballs in debt.

    In any case, how can an economy run just on building, buying and selling housing alone?

    Most of us know that we cannot possibly service a large debt, especially if there is a downturn. Why would we want to be debt slaves for the rest of our lives? Why wouldn’t we have a negative outlook?

    A downturn has the potential to leave some of us living in poverty.

    …went right back to doing its thing.

    Yes because of massive government intervention. $21000 first home buyers grant, opening up the flood gates for foreign buyers and encouraging a population ponzi scheme; continuation of the policies that encourage speculation (negative gearing, capital gains concessions and government funded housing subsidies – rent assistance). Whatever happened to the free market.

    Not to mention the implicit and explicit guarantees for banks so that they could continue to expand their balance sheets with risky lending practices. Our politicians have no imagination. This is their only plan for keeping the economy ticking along.

    All the signs of a massive downturn are there. Unemployment ticking up, falling dollar exchange rate, falling commodity prices, the end of the mining investment bubble and volatility on the stock exchange.

    As this post highlights, banks are now tightening up their lending rules. Bank funding cost are rising. When interest rates fall to zero you can bet all the foreign money will leave the banking system and the exchange rate will fall to 50 or 60 cents.

    At the moment the RBA is in the horns of a dilemma. Drop interest rates to support the rest of the economy or watch the bubbles in Sydney and Melbourne continue to expand. The writing is on the wall.

  16. @ 20 P#$%@d off

    “If you see a nice house for your family, and you can afford it and you can take the mortgage. Buy it. Live in it. Be happy.”

    This is the point: People can’t afford it. They “can” at the moment while interest is ARTIFICIALLY held at record low rates. Surely, you have to admit that the local economy is on a one way projectory, with rising unemployment, constant off shoring of jobs/industries, and a failed mining boom.

    Ironically, it’s not the data on this site that’s wrong, it’s the market.

    “The market can stay irrational longer than you can stay solvent.” John Keynes

    Now in this case it applies in the reverse fashion: People are buying into a huge distorted housing market using debt, thinking they are solvent: But they aren’t solvent at all, they are using debt to make up the difference.

    I simply can’t believe, how everyone moans how expensive life in Aus has become (and this is true, living costs are outrageous), from car rego and insurance, to council rates, parking fines, cost of good food, fuel, public transport, communications (15 years ago, no one was spending $100 per month just for a mobile, plus another $50 for internet at home) etc. etc. Most of these costs you can’t avoid if you want to be an active member of society.

    So Aussies moan how expensive this is, how it’s hard to make ends meet… But never do the maths to see that they simply can’t afford to pay these housing prices. They are taking out 40 year loans… 40 year FFS.

    Think how the world has changed since 1975…… What did interest rates do in that time? What have government fees done in that time? Were there any fuel crisis’s? Are the same jobs in existence?

    It’s astonishing to think that people sign up for a 40 year mortgage for the “security of owning their own home” rather than to rent until their finances are under control.

    Part of me wants to feel sorry for people when the inevitable crash comes, BUT I WONT ALLOW MYSELF! They have been greedy, lazy fools, who then bragged about “home ownership” (Tell me, where are the title’s for 60% of all homes, given that only 30% of homes are owned outright).

    If your worried about paying your mortgage currently, you really need to think about getting out while the goings good. There is a shift coming so large that I believe less than 5% of people are prepared.

    We are on the cusp of an automation age: Human labour is going to become practically worthless, from self check outs, to driverless trucks and courier vehicles, we are going to see a total collapse of employment. This alone is scary,

    But here’s the kicker: No jobs mean lower incomes, which mean housing stamp duty revenue is to collapse (we know this is true, hence the talk about yearly taxes on property owners)…. Couple with a collapse in income tax revenue…… Coupled with far more efficient transport operators (I believe automated cars and trucks would be ~30% more economical) leading to a collapse of in fuel taxes… This is before automated load sharing, which will reduce fuel usage even further, meaning even less fuel tax income… Then there’s the push to electric cars, which mean even less fuel income…. then the move to personal energy harvesting, solar, wind, methane etc.. even less income for the government…..

    I suspect free health, education and welfare systems to be severely reduced, as for family tax benefits I can’t imagine they are going to remain so buoyant.

    The world is moving so rapidly, in the years I’ve been following the housing market, the world has gone from chasing high paying jobs and careers and homeownership, to getting any job and home ownership at anycost, social, economic or family…and the next phase I suspect will see a total focus on merely surviving. It’s harsh and abrupt, and I get called all sorts of names for these views, but this is the reality.

    Now is not the time to be loading up on debt to buy houses, cars, holidays, just because society expects it of you. I would argue, that is the stupidest thing you could do if you have a family.

    It’s not too late, but if you care about yourself, your family and your future, you need to let go of what society, co-workers, family and friends expect/demand of you.

    It’s time to focus on you and your future: Do you want to be in a nursing home saying you gave everything to just put a roof over your family’s head, or would you rather be the guy that set your family up to be prosperous in the future. There’s no comparison.

    Homeowner’s with a massive mortgage: You’ve been sold a dud

  17. Last paragraph of comment 19 is so true. This is all anyone needs to understand. Comprehend that and you have a roadmap for the coming years. Horsetraylia is inexorably down this path already.

  18. Many people don’t think the property market will collapse. They think the value is ‘locked in’. It’s not. Its a illusion. The value will evaporate as the economy contracts. Has very little to with the simplistic notion of ‘supply and demand’. If you have a mortgage of half a million and there are no buyers your house is only worth what someone will pay for it. When the debt is turned off Australia ‘rentier’ economy will shrink rapidly.

  19. Paramatta shooting.Looks like the next war, on the chessboard, is with Iran.These wars are directly related to our economic stagnation and eventual decimation.Mass-immigration for the great big melting pot in all cities of Europe, the U.S. and all Crown colonies.The destruction of living people and all real productive industries, in the nations being bombed,and in the countries doing the bombing. OZ corporation recently purchased 40 war planes(bombers) at $6 billion dollars each.(this does not include maintenance and the cost of the bombs). Remember all debt is in private hands, that are the workers, who always finance the war machine via the unfair system of taxation and usury. Meanwhile,at the coalface,meat workers in the Lucky Country in 2015 on as little as $5 per hour. The wonders of free trade and globalism.Greed taken to the next level. Our Lord Jesus Christ the King of Kings said “Father forgive them for they do not know what they are doing”. Quit blaming and just STOP ALL WARS by non compliance.Do it for the suffering children on all sides. We are all creation not big bang. Peace and goodness to all.

  20. you think this site is negative? so far no mention of overpopulation, pollution, destruction of sub-soils, acidification of the oceans, global warming, depletion of wildlife ……. and all of this very well researched and documented for those who care to see.

    economy is totally dependent on healthy environment and yet we continue to populate and pollute. we are stuffed!

  21. This site is not a pit of negativity, it is a bastion of hope – false hope maybe, but hope none the less.

  22. Pissed off…..your obviously knew the the truth syrup…..kick your heels together and say there is no place like home…..oh yeah and take your little dog too…..

  23. @30

    You’ll get booty soon. Especially from those that gloated “you’ll never see my arse in the wind.”

  24. Seriously you guys need to get over it. Property cycles come and go but honestly there’s always money to be made. I used to be into the whole ‘sky’s falling property will crash’ I held out since 2007! Ended up with 300k in the bank so I bought a house. The next year I already had equity enough to buy another with no deposit so I did. Then the next year two more. I rented my own house back to myself through a realestate company to my partner so I don’t pay tax. Then I just kept buying more and more. I have never not had tenants in my houses because I buy in high density poor areas that have high birth rates. In the last 3 years I’ve gone from 1 house to 6 and I’m hoping by the time I’m 30 to have 10 and by the time I’m 40 to have 40. One every 3-4 months and it looks like I will be able too.

    Get your asses in gear and save and get a good first home. Worst house on the best street. I used to eat bulk migoreng living in student housing and would ride a 125 motorcycle to save money anything to build up a sizeable war chest. Google highest paid jobs in Australia and find something that pays awesome that they can’t rely on 457 visas for and you’re set for life. Of even get a job cleaning a mine or fixing sewage pipes whatever pays the most and you can do.

  25. I don’t think the average Australian really understands what a ‘real’ recession actually looks like so go talk to anyone from Europe who’s been forced to move down under for work in the last 5 year’s. I’m sure it’ll change your perspective. It’s the ordinary Joe that gets shafted in a recession, not the Banker, the Developer or the Pollie. Jobs will go, even the handy public sector jobs. Think your immune to all this……think again. Let me put it this way, how long could you survive and service all your bills if you lost your job in the morning and didn’t know if or when you could get another one.

  26. Beggasam,

    The problem with people like you is that you’re a rent seeker. Expecting the hard work and labour of other people to pay for your assets or to keep you in the lifestyle that you’ve become accustomed to. It’s people like you who’ve turn Australia into a place full of selfish, narcissistic jerks. Expecting government subsidies for your property speculation. No doubt you’re also the sort of person who would complain about the disadvantaged receiving welfare. The hypocrisy.

    That’s why people like me are hoping for a correction.

  27. i have just come back from a trip of berlin in germany,i was shocked at how cheap everything was…i give u example a whole day trip on a cruise boat up german rivers was 10 euros(about 15 oz dollars)can anyone tell me anywhere in oz i can go on a boat for the whole day for $15????a 3 course meal cost me $22??? it just shows how expensive australia is and its a f#cken rip-off

  28. Beggasam,
    Your amazing…is that what you want to hear…this site isn’t people that can’t afford to purchase a property, this is a site where people see the bigger picture….a small drop in prices leaves you scratching your head….good luck with that…if i didn’t know any better I would think you were Margaret Lomas, Anyone can negative gear and buy a property and it’s almost comparable to the tulip mania in my opinion….hope to hear from you again and I certainly hope you can share with us that you have purchase another 4 properties in twelve months from now …certainly look forward to that. You would make a good polly btw.

  29. Wtf is wrong with you guys just bagging people out. I worked at hungry jacks for 3 years before I got a real job cleaning for 50k a year and I just kept saving and saving and saving. I was dirt poor. My dad was a bum who died penniless with a bottle in his hand and my mum died when I was 20 from cancer. Neither of them had cash and I lived in student housing till I was 25. I go to church every Sunday and I’m a volunteer for the council planting trees on the weekend. I’m not a smart girl but I know you have to work and save to get ahead and I know getting a good paying job matters. All I did was save and save for a decade till I had saved everything and now it’s paying off. Got my management diploma because I don’t want to be a cleaner forever and moved up. Im in WA where prices arent like Sydney. They have been going down every year but I look at little townhouses close to the city and rent them out for as much as the loan. Sure they aren’t the nicest places but they all pay for themselves. I didn’t buy places all in the same suburb. I’m spread out north south east west close to major shops or the city or train. I once was so poor I used to walk to the shops to use the toilet to save on water and toilet paper and I would buy potatoes 10kg at a time and carry it on the bus because I couldn’t ride with it. You guys make me sick you think people should just give you a house when real people like me who have actually worked their ass of 12 hours a day night or day on weekends actually get ahead and you think I’m lazy and I’m what’s wrong with Australia. I think you guys need a mirror. And no I think welfare is super important. It helped me look after mum while she died. My accounts told me now that I’ve paid off enough that if prices fall 30% I’d still be in the green and if I ever got in trouble I could just sell one of them and be fine. So I do see the bigger picture thank you very much. Do you even have an accountant? Have you spent 10 years working and have nothing to show for it? I think you guys are just angry at the world and if it was cool to be angry at polluting or starvation you’d be on that bandwagon instead.

  30. Beggasam

    You say:

    – buy in high density poor areas that have high birth rates.
    – look at little townhouses close to the city and rent them out for as much as the loan.

    So which one is it?

    You stress the importance of one type of investment strategy and then forget about it in your next post when you’re talking about how important it is to buy close to the city and charge high rent to pay the loan.

    Walking to shops to use a toilet? and doing this saved you ~ $10 a month in toilet paper and water.

    You went from Hungry Jacks to being a cleaner and then got a management diploma and moved up as you say. Because “I don’t want to be a cleaner forever” that is worded as if you are still a cleaner but when you say you moved up then it sounds as though you are no longer a cleaner. Why bother being a manager, shouldn’t you just retire and keep buying houses?

    You rent your own house back to yourself so you don’t pay tax? This is the most ridiculous thing I have ever read.

    Please continue with your story though 🙂

  31. @39

    The old “I ate shit as a youngster, so I have no problem serving it” line…

    We may make you sick via our opinions, you just keep that crystal ball shining….you do have one right?

  32. Bankwest has just written to investors informing them that interest rates will go up 100 percentage points.

    It seems some leveraged property investors are not taking it well.

  33. You guys make me sick you think people should just give you a house when real people like me who have actually worked their ass of 12 hours a day night or day on weekends actually get ahead


    Sure they aren’t the nicest places but they all pay for themselves.

    You still don’t get it do you.

    I don’t mind you getting ahead and buying your own place of residence and then investing in the productive economy. It’s when you expect other people to pay off your investment properties that I see a problem. You’ve just admitted that that is what you’re doing.

    And because housing is so unaffordable it requires massive subsidies (through tax concessions and other government programs) to make it worthwhile. Other peoples taxes are paying for your speculation.

    The car industry was receiving approximately the same amount of subsidies that the federal government is forgoing in negative gearing on property. If it is seen as inefficient to provide those subsidies to the car industries, why is it not for the property industry? Don’t politicians talk about “not picking winners”? Clearly they are.

    The property bubble is fed by people like you. It’s part of the reason we see 100k people living on the street every night. High cost of living, unable to afford the rent.

    Most of the people here don’t want to become part of the rent seeking land lord army. They just want affordable unsubsidised housing.

    In any case it is not at all possible for all of us to become landlords. How’s that going to work? Imagine if we tried to. The federal government would lose it’s tax base because everyone was negative gearing.

  34. I just read a Sydney Morning Herald article where it stated that even more (most likely dirty), Chinese money is coming our way, jacking up our real estate prices even further.

    So much for the so called “crackdown” on dirty Chinese money, and the Chinese government supposedly limiting their nationals to taking a maximum of $50K a year out of the country.

    The “great Australian dream” of owning your home is now officially dead and buried for most Australians on the average wage. Job losses are mounting, their is no confidence in the economy and our so called political leaders couldn’t give a damn, as they only care about the top 1%. And so what about the Liberals changing leaders, “same horse, different jockey”.

  35. Beggasam

    “I rented my own house back to myself through a realestate company to my partner so I don’t pay tax.”

    This is nonsense, the ATO have rules for negative gearing around renting out rooms of their own house at a low rate and then trying to claim a large deduction of rent. There are also similar rules to stop people doing the same with holiday homes.

    If you for example only charged $10pw rent then this $10 is the only amount that can be deemed as commercial and greatly impacts the amount you can claim as a negative gearing deduction. The ATO states that generally you cannot claim back a loss that is greater than the amount of income the property generates. So in your case this scenario is not going to allow you to reduce tax from a $50k+ pa by anything significant at all.

    The other scenario where you lease your rooms at market rates lets say ~$200 pw, this now increases your taxable income by $200pw and cancels out any tax benefit you might receive.

    “people like me who have actually worked their ass of 12 hours a day night or day on weekends actually get ahead and you think I’m lazy and I’m what’s wrong with Australia.”

    But you are claiming to be using a scheme that would if possible (which it isn’t) be classed as tax evasion.

    “I think you guys need a mirror.”

    I don’t know… what does a person who spends 10 years eating mostly Mi Goreng 2 minute noodles and potatoes look like in the mirror?

    Your story reads as a complete fantasy. Anyone can post on here and claim to be something they are not. You’re making up a false story to win an argument on here but there is no way to validate your claims. You contradict yourself in many parts and you claim to be doing something that is not financially possible with the ATO’s rules.

    A few years ago a 20’s something girl with $$ in her eyes over property believed she could just start buying properties non stop and retire in her 30’s started a website and a Facebook page called MyPropertyJourney where she would document her journey online to becoming some property mogul. She had a nice job that paid $80k she had an investment property. The only problem is that it didn’t work and now her website is shut down and the Facebook page is no longer updated.

  36. i was just surfing the net and looked at and i found this little jem for rent, it just shows u even property next to the beach is getting cheap in rockingham where i live…$240 a week-

  37. Beggasam,
    Your certainly entitled to an opininion but if your after encouragement your at the wrong site…. Your probably after a real estate site where everyone high fives each other for adding another property to their portfolio with their so called temporary equity fantasy. I certainly hope people like you continue what your doing…it suits my plans fine. Maybe we should go to church like you….sounds like God only gives property to people that enter his house……..the tax exempt house….please. Using toilets etc cause you were poor ……you could win Australia’s got talent with that sob story. You have no clue

  38. still shaking my head at beggasam…….Google highest paying jobs……your post has to be the best this year and I honestly mean that……I don’t mean that as sarcasm….please post more comments

  39. I’m not sure where all this Chinese money is coming from given the billions wiped from junk status bonds which were funding property investment. This may be why some banks have been under pressure to sure up their mortgage portfolios by aiming for APRA’s 90 per cent owner occupiers.
    Certainly, anecdotal evidence suggests that the Chinese influence on Tasmanian markets are grossly overstated, and most Chinese money left by 2007. Since then main-land and younger couples are the more likely investors in real estate.
    Currently, fully renovated (by charity) weatherboard houses in the US are selling for around 60 000 USD. Comparable houses in Australia are listed around 200K AUD plus. Some houses in Detroit, many with problems – a city that declared bankruptcy because it could not afford it’s government pension payouts to retiring works, are selling at 500USD (yes, five hundred dollars). Sure, new builds may be worth 400 000AUD plus, but are sixty year old houses in need of renovation really worth the listed price? How is someone who works on an average wage, with interest rates likely to increase in the next five years, supposed to afford 200K for a block of land in suburbia?
    Not negative comments, not anti-development, not anti-business, just concerned. More houses listed at the moment, at “below offer” and in conjunction with other real estate agents. Hardly the sign of a booming market, now is it?

  40. @Lard DV great post. I read from another blogger the strategy is to purchase the house in AUD, USD or CAN as a triple AAA rated asset from the initial brorrowing in Hong Kong or Singapore bank HSBC used to be one but no longer offers investment mortgages, the Chinese then re-mortage the purchased property and use the twice leveraged money to re-invest in stocks, bonds or other investment instrument anywhere they want – for example in the US Stock Exchange or ASX or Canada exchange. This twice leveraged money re-invested ‘elsewhere’ is free of the tax regime of the Chinese Communist Party Government. The other scenario has been written in this blog where younger more immature CHinese and Asian investors see Sydney and Melbourne and our capital cities in general as the next Shanghai or Hong Kong of the south. This is a great misconception as it ignores our politci economic system here in Australia where our governments manage a ‘Welfare State’ that cannot exist when open to free immigration and residency as it taxes and degrades the very welfare mechanisms out state has been built upon to maintain it’s politico complex. Interesting topic that should be explored further.

  41. @ 50

    Here in Adelaide, at lights view, 8km from CBD, approx 40 mins in peak hour, land is $1000 per square metre.

    Yes, that’s right, $1k per m2. We just had a friend buy ~400m2…$387,000, and now has to build…..

    Ooops, sorry, she didn’t buy the block, rather the bank did, and she promises she will pay them for it.

    Our whole economy is housing focused, from jobs, to government revenue: It’s completely unstable and unsustainable, and due to the leverage of ~$1.5 TRILLION, or $90Billion per year just in interest payments, just on housing, when the music stops, it will be a show that most Australian’s couldn’t have imagined in their worst nightmare.

    Think about that, we all are complaining and outraged at the federal deficit of ~$50B, yet we spend near twice that just on interest for a roof over our heads.

    It’s insane…. Repeating the same thing over and over, and expecting a different result is the definition of insanity right? What is it where you flip houses to each other, where no increase in wealth occurs, but you keep doing it because you expect it to create wealth????

    Insane. The whole world’s gone crazy, just check and those charts show how close to the global currency system failing totally.

    Lower and lower rates, more and more central bank ownership of “assets” yet no real growth.

  42. Beggasam…. oh dear.

    “You know it’s time to sell when the shoeshine boy gives you stock tips” – Joseph P Kennedy

    In the last month I’ve read about primary school teachers and taxi drivers buying multiple property investments, and now I’ve heard it from the cleaner.

    I think I need to start advising my friends to get out of the property market, it’s clearly reached it’s saturation point.

  43. Also, this is why I can’t afford my own family home – I’m competing at auction with the same faces over and over again buying multiple properties at the government’s expense.

  44. @ Bubby (comment 45)

    Nice expose of Beggasam, uncovered the flaws in her fantasy extremely well. Anyone with basic maths skills and a casual knowledge of real estate and taxation could see her postulations were not plausible. We’ve had god knows how many stories in the papers of these self style female property gurus about their latest acquisition on which they are paying 100’s of thousands of dollar to tradesmen to revamp as an upmarket professional’s style house, only to find they cant sell it for anywhere what they had hoped, and then their so called Real Estate renovation career disappears. Reality is a bitch!

  45. I lived through the Texas real-estate crash of the mid 1980’s. It was nowhere near speculated up as much as here. The prices went up and up although much of it was vacant. Then the volume of transactions fell to near zero and nothing cleared. Then the banks failed and mortgages ceased to be available. A few months later real-estate was selling (at forced auctions) for cash, and prices were 4-5 percent of what they were before the crash. That is right, real-estate lost 95-96 percent of its value.

    Most people just packed up and left, just like I did. Something very similar is likely to happen here, but the crash could be even deeper.

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