The Australian Government demands 32 years’ worth of real estate records in an unprecedented foreign buyer crackdown.

On December 8, 2015, the Australian Government announced it will be conducting extensive cross-checking of records to hunt down illegal owners of Australian real estate.

Full article: http://uchkconsulting.com/australian-government-demands-32-years-real-estate-records.html

The Australian Tax Office (ATO) is the Government agency responsible for overseeing foreign property investment.

The ATO will be examining more than 11 million people and has requested 32 years’ worth of data relating to real estate transactions across the country.

The ATO has demanded revenue and land title authorities and rental bond authorities across all Australian states to provide all data from 1985 to 2017.  

The ATO compliance officers analysis is estimated to reveal a web of corruption and miss leading behaviour. Illegal owners of Australian real estate will be hunted down, fined heavily, have their properties seized and/or be prosecuted.

ATO compliance officers will be cross referencing Land Title data property ownership with rental bond authorities, inconstancy will certainly red flag properties illegally purchased. As an example, if the registered land owner is different to the landlord registered with the bond authority, this will immediately raise suspicion that something (most likely) illegally is being conducted.

“The property data will be used to assist in the screening of foreign resident real estate applications and compliance activity to ensure foreign residents are complying with relevant laws,” an ATO spokesperson said.

The Foreign buyer crackdown was revealed in the latest Australian Government Gazette, wherein the Commissioner of Taxation lodged a notice of the data matching program.

Only a week after the government’s amnesty towards foreign investors whom who had unlawfully purchased property had expired, the Australian Tax Office cross referencing initiative is estimated to see a huge increase in identifying illegal Australian real estate transactions.

Over 50 compliance officers charged with investigating potential breaches of the law will also be looking into lawyers, conveyances and real estate agents that knowingly assisted foreign investors make an illegal transaction.

Australia off-the-plan Market Forecast 2016

In 2015 the Australian Prudential Regulation Authority (APRA) announced that the big banks must hold more capital against their gargantuan mortgage books to provide a buffer against defaults.

http://uchkconsulting.com/australia-overseas-real-estate-purchaser-risk-assessment.php

Australian banks are now progressively reducing their loan-to-value ratios (LVRs) on investor loans from 95% down to 80%.  Overseas investors the hardest hit, slashed from 80% down to 70%, in most cases.

Mortgage rates are not likely to rise as a consequence of the more stringent capital requirements however, many economists anticipate weaker off-the-plan sales into 2016. A weaker off-the-plan market translates to valuers down valuing purchase prices in certain precincts with a high level of apartment supplies and risk.

The Australian Prudential Regulation Authority (APRA) is the Government agency that oversees banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, private health insurance and was established on 1 July 1998.  http://www.apra.gov.au

A majority of overseas investors that purchased off-the-plan in the past 12-24 months have made their financial decision to purchase based on obtaining an 80% loan. For the many uninformed overseas purchasers, the month prior to settlement delivers a shock that their Australian real estate investment is hungry for another 10% in equity from their savings.

The potential settlement risk for property developers will be overseas purchasers caught by surprise, whom cannot afford an additional 10% to cover the 70% LVR.  In other words, a typical Melbourne investment of $500,000 will require a minimal of $150,000 in equity directly from the purchasers own savings.  (10% deposit + 20% Equity a whopping 30%) 

Pair the ‘APRA financing conundrum’ with the a ‘weaker off-the-plan market’ there is a high possibility that the banks valuer will provide a valuation for less than the original purchase price.  

The market fear is that the valuers assessment at settlement could reduce values 5%-12% lower than the contract price, the 70% loan approval could see the purchaser having to handover savings to cover the further valuation shortfall. 

Assuming a 5% reduction in the off-the-plan purchaser price (5% is considered a reasonable buffer on off-the-plan valuations)

10% deposit %50,000 + 

20% Equity $150,000 + 

5% Value Buffer (Min 5%) $25,000  +

35% Total equity required $175,000

There a segments and precincts within the real estate market already flagged as high risk due to the over supply of product in the pipe line or currently on the market. Potentially the 5% off-the-plan valuation buffer, could jump to over 12% in these over supplied precincts.

The ‘APRA financing conundrum’ and ‘weaker off-the-plan market’ both translate to settlement risk for property developers and a need for financial planning for overseas real estate investors.

Australia Money Laundering from China

Chinese investors flooding billions into the Australian real estate market prompt money laundering investigations

The talk around the industry and from Government sources is that a significant amount of criminal liability will fall upon real estate agents whom knowingly facilitate real estate transactions from suspicious sources.

http://www.abc.net.au/news/2015-10-12/chinese-investors-flooding-billions-into-australian-real-estate/6841816

The Australian Government welcomes foreign investment from overseas. It is the genesis to building Australia’s economy by supporting population growth and financial prosperity for all Australians.

Overseas Australia real estate investors are reminded to only purchase Australian Government approved property investments that are regulated by the Foreign Investment Review Board (FIRB). 

All UCHK real estate investment opportunities are FIRB - Foreign Investment Review Board pre-approved and available for purchase by overseas investors.

http://uchkconsulting.com/

Dodgy Agents scam alert - Australia Real Estate Agents for a day.

There has been an increasing number of ‘Agents for a day’ offering advice to Chinese clients.

“dodgy”- dishonest or unreliable."a dodgy real estate sales person” - behaving or prone to behave in an untrustworthy, deceitful, or insincere way.- intended to mislead or cheat."he promised a cash rebate and immigration"

Many agents operate ethically and professionally. However I have also seen a significant number of Dodgy Agents who give the industry a tarnished reputation that all respectable and Professional Agents have to wear.

http://uchkconsulting.com/australia-dodgy-agents-scam-alert-real-estate-agents-for-a-day.php

If you are an overseas investor you have more than likely been exposed to 100’s of agents at property exhibitions and seminars and, there is no limit to the number of Dodgy Agents found on the internet.

There is an increasing amount of complaints regarding Dodgy Agents being made at the Office of Fair Trading in each State in Australia.   From promised rebates that remain unpaid to two tier price lists wherein the overseas investor has been offered a higher price than what was available to the local market. 

Two tier pricing is a common scam by Dodgy agents to allow them to reap a higher sales fee and pocket an illegal commission. A fraudulent markup on the developer price list to unfairly reap up to a 20% fee, or higher.

I have even heard of some unfortunate overseas buyers being charged a ‘buying fee’ by a Dodgy agent.

The ‘Free Australian immigration’ scam in China is a vulgar card trick played by Dodgy agents at property exhibitions.  Verbal statements and exhibition booth signage that clearly entice clients with messages of “become an Australian Citizen” buy our special property that will grant you a permanent resident status or citizenship.  This is certainly not the case, Australia real estate investment does not entitle any overseas investor to PR status and certainly not citizenship.

Rebates are another common scam with the sales representative offering potential clients cash incentives to secure the sale. There is nothing wrong with being offered a rebate however, they are very rarely paid by the Dodgy Agent whom disappears or does not answer the distressed clients call after settlement.

The Australian Government is also hunting down Dodgy Agents and the purchasers of Australian real estate with tough new foreign investment rules.  There are hundreds of overseas investors that have been convinced to illegally purchase ‘not approved’ Foreign Investment Review Board (FIRB) real estate. Persuaded by Dodgy Agents that their illegal FIRB purchase can be hidden from the Australian Government via everything from distant PR relatives, company structures and false identities.  In many cases, the new FIRB rulings are not communicated to the overseas clients.

“Overseas real estate investors have to navigate the complex procedure of buying or selling a property and unfortunately Dodgy Agents take advantage of the fact that the Chinese are not knowledgeable of the system or their rights”

Only recently, I learnt of an agent that had Zero industry, skills or knowledge and did not assist their client at the settlement stage.   Whilst buying an apartment is the easiest step for overseas investors, having a Professional Agent at the settlement stage can make the difference between ‘Pure Hell’ and a perfect investment.  

At settlement many overseas purchasers do not realise that in the back ground an number of critical services come together.  Starting with at least 3 months notification that the off-the-plan purchase is nearing completion and that obtaining finance approval is essential.  More often than not, the Dodgy Agents do offer any form of assistance or direction on who or where to approach the critical finance.  

Another trend by Dodgy Agents is not attending the final inspection with the developer to identify any building defects and take photos of the new investment property on behalf of the client.  A Professional Agent always provides the property valuer a detailed information pack about the project and comparable sales to ensure that the valuation to be provided matches the purchase price. A week prior to settlement the Professional Agent will book a final inspection with the property developer to represent his or her client.  A critical step is the Professional Agent is the eyes and ears of the overseas investor to ensure that the purchase (off-the-plan) has been delivered in accordance with the Contract of Sale such as; size sqm, appliances, fittings and finishes and, the overall quality.  Taking photos so that the new investment can be visually communicated to the overseas client is not only a courtesy but, a record for the client.

I personally was informed of a Dodgy Agents antics and stepped in to assist some distressed clients.  At a prestigious project in Richmond Victoria three clients were beside themselves at settlement as the Dodgy Agent had omitted to include the ‘Developer Incentives’ into the Contract of Sale over two years ago, these included: 

• Rental Guarantee for 18 months at 5%
• Property management for first 12 months
• $1000 towards legal fees
• Depreciation schedule
• Storage cage
• Blinds

Whilst the developer had no contractual obligation to provide these incentives to the three clients as the Dodgy Agent had forgotten to write them in the contract, after phone calls, many emails and a luncheon, the developer kindly offered to re-instate the incentives at no cost.

Things to identify a Dodgy Agent:

• Has never been to Australia
• Cannot speak english fluently
• Is pushy to make a sale
• Offers non developer incentives
• Offers secret cash rebates from his or her pocket
• Offers guaranteed immigration
• Does not explain the rules of the Foreign Investment Review Board (FIRB)
• Offers you a none FIRB approved property
• Does not have an Australian office or representative
• Has less than 5 years experience in selling Australian real estate

The Australian dollar is a win win for overseas real estate investors

The recent fall in the Australian dollar to a record low is a win win for overseas real estate investors. 

http://uchkconsulting.com/australian-dollar-is-a-win-win-for-overseas-real-estate-investors.php

From an average of $0.85 in November 2014 the Australia dollar is fallen to (fluctuating by 15 cents) record low of $0.72 in September 2015.

This is great news for overseas investors who have had a windfall of over 10%.  

Buying property requires a 10% deposit to secure the sale.  An example purchase at AUD$500,000 with a AUD$50,000 down payment in November 2014 would have exchanged at USD$42,500.  

The same transaction in September 2015 would have been USD$36,000 a savings of USD$6,500.

With many banks offering now 70% finance for overseas investors, the 30% equity required would represent a total savings of USD$19,500  or approx. AUD$25,350 or a huge 5% of a typical property investment of AUD$500,000

Overseas investment will slowly increase this year, as the confidence in the Stockmarket has turned speculative investors back to the security of bricks and mortar returns.

The Australian property market is without doubt in a high cycle with certain areas and individual opportunities offered ‘red flagged’ by UCHK Consulting as poor investments.  There is an unprecedented level of stock available and identifying good priced stock is increasingly difficult. 

Foreign investment crackdown:  A firm reminder to all overseas investors that only FIRB approved real estate investments can be purchased.

http://www.abc.net.au/news/2015-09-16/foreign-investment-crackdown/6779998

Under foreign investment laws, non-residents can only buy newly built properties, while temporary residents can own one existing property as long as they live in it.

http://uchkconsulting.com/

Melbourne, Australia named the most liveable city in the world again.

http://www.abc.net.au/news/2015-08-18/melbourne-named-worlds-most-liveable-city-again/6705274

For more information about Melbourne and real estate visit: http://uchkconsulting.com

Australia Government announces foreign investment moratorium, urges rule-breakers to come clean.

"If you do not come to us, we will come to you because eventually we will find those people that have engaged in unlawful acquisition of Australian real estate and we will prosecute you and we will be very hard about it.”

http://www.smh.com.au/federal-politics/political-news/joe-hockey-announces-foreign-investment-moratorium-urges-rulebreakers-to-come-clean-20150502-1mygmy.html

"The Australian Government welcomes foreign residential investment. It is the genesis to building Australia’s economy by supporting population growth and provides financial prosperity for all Australians” 

Overseas foreign investors are permitted to purchase FIRB approved real estate.

http://uchkconsulting.com/

Real estate capital growth trends in Australia

Sophisticated investment varies from country to country. While some enjoy moderate capital growth and high rental returns, some have low rental returns that barely meet the cost of the property but enjoy exceptional capital growth.

Read the original article here:

http://uchkconsulting.com/australia-real-estate-capital-growth-rates.php

In an age where journalists are constantly under pressure from their editors to publish sensationalist headlines and capture readers attention, the facts can only be interpreted when you cut out the hype and opinion. Capital growth charts often show peaks and troughs that seemingly portray alarming losses, when in fact what occurred was huge growth tempered by a slight cooling. But that doesn’t count for much if a journalist uses a percentage graph. The casual observer can easily be misguided and believe the hype. 

 

Australia Overseas Property Investor Finance Announcement

There is exciting finance news for existing and new UCHK Consulting Ltd clients.

60%-80% LVR OFFSHORE BANK LOANS AT 1.75% - 2.25%

UCHK Consulting is offering a unique financing product that can significantly change how your investment property performs. Bank finance for your property investment is critical to the success of your real estate wealth creation goals. Obtaining the best market mortgage rate and loan structure can save you thousands per year.

http://uchkconsulting.com/offshore-bank-loans-for-australia-real-estate-investors.php

Australian property overseas investment - types of property investors in Australian real estate - are you a FRUIT or NUT property investor ?

http://uchkconsulting.com/australia-property-investment-are-you-a-fruit-or-nut-investor.php

For the past 25 years traveling to Asia’s capital cities, I have had come into contact with various types of entrepreneurial, intelligent investors, ranging from owners of car dealerships and factories, video producers, fund managers, and the like, it has become apparent to me that they all have a character trait in common. By Scott O. Talbot

My first example of a investor I like to call the Fruit Shop real estate investor. Bill, an old investor friend of mine, started out with a fruit shop in small time suburbia. Through hard work he managed to build his empire in to a large chain of distributors of produce, and now supplies a range of hotels and restaurants with his quality food items. He is undoubtedly an expert and master of his chosen trade, a fact undeniably stated by his success and wealth in his business environment. Bill is an example of this Fruit Shop Investor.

It was approximately 1998 when I first advised Bill on an Australian property investment. Bill boasted of his past glories dabbling in the real estate and shares market. His method was to buy good property, make any needed improvements, and then turn it over and resell it. With my advice Bill purchased a two-bedroom apartment in Carlton, initially to be used by his child while studying at Melbourne university.

When discussing his Australian real estate requirements, it became apparent that his property investment ethos was the same as his attitude towards buying and selling fresh produce.  He would buy the freshest, ripest, most high quality foodstuffs, place it on the display shelf for all customers to see, and then he was obliged by the inherent nature of fresh food to sell it before it could rot before his eyes. So this mentality that had brought him great prosperity in the fresh produce industry was unknowingly applied to his behaviour towards his property investment strategy.

It took some convincing before he grasped that real estate would not rot on the shelves. The right property, bought at a good price, would increase in capital growth, unlike a three-day old banana on a 40 degree day.

Approximately three years after Bill’s initial acquisition when one of his children had finished at Melbourne University, I called to inform him of capital growth on his property, in the region of AU$200,000. Naturally Bill was delighted with this good news. So much so that he immediately instructed me to sell the apartment and cash in on the windfall! 

This was a typical reaction from a Fruit real estate Investor. Said Bill: “That’s great. Get me the money. I want to buy more property, buy a sports car, go on holiday...” or whatever his whim was at that time.

What he didn’t realise was: He was exiting the property market place, therefore incurring some capital taxes on the profits, and more importantly, Forgoing any future capital growth on the property. By selling prematurely he was forfeiting a $100,000 in capital growth over the following 2-3 years. 

This explains the Fruit Shop property investor. They often make a healthy short-term gain on their real estate investment, but they fail to reap the full financial benefits of holding on to and protecting their property assets. They operate through buying and selling real estate, making the quick buck wherever they can, moving on. So while they make a decent profit as they go along, they own nothing because they constantly speculate and sell.

The other kind of Australian real estate moguls, I call Squirrel Investors. A squirrel carefully gathers as many nuts as it can and stashes them away. It hoards. Most Australians are encouraged to see their long term wealth creation in this way. The goal is to accumulate real estate wealth rather than trade wealth. 

In contrast to Bill is another client from Singapore. Known to me as Lin, this friend’s father is an excellent example of a Squirrel Investor and the benefits of that investment mentality. Lin owns a prestigious property on Orchard Road in Singapore. His father originally bought the property 40 years ago, insisting that it would never be sold and so took legal measures to ensure it could not be sold by the family in the years to follow, even after his passing.

The property price was relatively little back then. Today it is worth in excess of $30million. The rental income covers the mortgage repayments and the ability to extract the increase in capital growth of the property has made everyone in the family millionaires. All this from one single property. A great example of the rewards to a Squirrel Investor. The prudent owner could have sold in the 90’s and made a huge profit. Rather he held firm and steadfast to retain the wealth, and now has the ability to call up his bank and in no uncertain terms state the property valuation at $30million, the loan facility at $5million, the rental returns are positively geared and servicing the loan, and request upwards of 60% on the equity of the property. 

The Squirrel Investor has been doing this every 2 or 3 years for the last three decades, engineering a renewable income through the accumulation wealth strategy of buying and holding on to real estate assets.

UCHK Consulting outlines a clear path for existing and potential property investors to also learn about how to be a clever “Squirrel Investor”, thus empowering them to achieve these phenomenal returns on their investment. The wealth creation strategy is very simple, it is buying property and retaining it by never selling, only in exceptional circumstances, thus holding on to the very mechanism that is generating the wealth, namely, the property.

Australia Real Estate FIRB Investment 

http://uchkconsulting.com/australia-cultural-diversity.php

With the Australian population increasing by one birth every 1:44 minutes and one immigrant arriving every two minutes, the Australian Government welcomes foreign residential investment. FIRB approved property sales to overseas investors is the genesis to building Australia’s economy by supporting population growth and providing financial prosperity for all Australians.

With nearly 24 million Australians in 2015, the population density is still amongst the lowest in the world.  The ABS (Australian Bureau of Statistics) projected population clock can be found here: http://www.abs.gov.au/ausstats/abs@.nsf/Web+Pages/Population+Clock

Australia is rich with diversity with 23% of Australians foreign born and over 40% are of mixed cultural origins. Australia is a place of acceptance to people of all colours, backgrounds and beliefs. It is a place where everyone takes pride in calling themselves an Australian.

Australia Real Estate on a path for continued growth.

Click for the AFR Article

This Financial Review article is forecasting further rate cuts in 2015-16: “The Reserve Bank of Australia will be forced to fire its “dwindling ammunition” and cut interest rates to 1.5 per cent within 18 months”

With the lowest interest loan rate since the 1960’s, the Australian real estate market is hot with investors globally taking advantage of the perfect investor conditions.  Another rate cut is great news for property investors, locally and from overseas.  Interest on a mortgage is the key attribute to an investment properties ROI performance. With rental yields for good located new stock between 5-7%, another rate cut will have investors laughing all the way to the ban. http://uchkconsulting.com/

Australia Real Estate still confident after the Reserve Bank announcement.

http://uchkconsulting.com/

The Australian Reserve Bank announced it will be holding the current rate yesterday. As record house prices are effecting the Melbourne and Sydney markets, the speculated rate reduction was predominantly over concerns for the record low in Iron Ore prices and the slowing resources segment of the Australian Economy. With the lowest interest loan rate since the 1960’s the Australian real estate market is hot, with investors globally taking advantage of the perfect investor conditions. 

https://au.news.yahoo.com/world/a/26968652/reserve-bank-expected-to-cut-interest-rates-amid-strong-sydney-housing-market-low-iron-ore-prices/

Australia Real Estate - Convertible Apartment

Australia Real Estate - Convertible Apartment

http://uchkconsulting.com/sancturay-sudio-677-victoria-street-abbotsford.php

Australian property investors are constantly looking for affordability and innovation. Within the property market, buyers and renters alike have different requirements and price points. Often a single person will no be interested in a two bedroom apartment as they do not wish to share or live with some else.  As is the case for the frequent flyer business person whom simply needs a base, not an entire house or apartment.   There are many lifestyle choices that are chasing the Australian real estate market and this studio apartment shown in this video is an excellent example of luxury innovation. UCHK Consulting Ltd has a small selection of affordable studio apartments from $415,000 with exceptional investor incentives: Rental Guarantee for 18 months at 5% + Property management for first 12 months + $1000 towards legal fees + Depreciation schedule + Storage cage+ Window Blinds

Recruiting sophisticated and intelligent sales staff is a priority for UCHK Consulting Ltd.

UCHK is the international distributer of hand picked, prime Australia real estate investments. Over the past 25 years the UCHK brand has establish a strong market presence within the Australian project marketing sector, with the group achieving in excess of $300 million sales in Asia, 2014.

 

Attending public property fairs and conducting invitation only, sponsored private seminars, UCHK boasts a current client database of over 50,000 active clients of past purchasers and prospective buyers.

Throughout South East Asia and P.R.C, the UCHK group is seeking a number of well connected and passionate, full time and part time sales representatives and client introducers.

There are various positions available to suite a variety of individuals wishing to enter the Australian real estate market.

ASSOCIATE (freelance) is a person that wishes to explore real estate sales as a secondary form of income or part time interest, whilst maintaining their current occupation.  

Associates have had particular success aligning their current positions/careers to network with work colleagues, Linked-in members, social media, family, friends and their community in general. As an example, a university student in China has been successfully networking with his fellow students of wealthy families, who have interest in investing and immigrating to Australia. Other similar examples include an accountant and luxury car sales person. All earning in excess of $12,000 USD per month. Moreover, the university student has exceeded $100,000 over three months.

Freelance Associate is the best option if you do not wish to have a career change, but wish to draw a formidable income from real estate sales (assisted by a senior consultant) with the flexibility to dedicate your spare time and capitalize on your networking abilities and aligning your current employment and contacts.

CONSULTANT (full time) is a successful applicant that has secured their first property sale for UCHK and wishes to become a full time consultant.  

A UCHK Consultant will be paid a base monthly retainer deductible against commissions. In other words a weekly pay cheque to assist with living expenses between commission payments.

UCHK INTRODUCER is an a networking professional that wishes to introduce potential clients to UCHK. 

Introducing a potential client is simple and via email that does not require any involvement in the sales process. A fee upto 1% of the sale price is paid for a successful introduction.

UCHK AGENCY is for established real estate firms wishing to operate under the UCHK master marketing agreement. 

The agency / company must be established for more than 12 months with in excess of 5 full time sales staff and wishes to offer UCHK exclusive products to their clients. Real Estate agency fees paid are up to 4% of the sale price.

Apply here: http://uchkconsulting.com/careers.php