EP. 1207 ARE WE WITNESSING A CHINESE INFLUX?

Prepare to navigate the complex landscape of Australia's real estate amidst a staggering population boom - the likes of which we haven't seen in 70 years. Wrap your head around the consequences of adding over 600,000 individuals to the mix, from skyrocketing property prices to the increasingly elusive dream of home ownership. If you've been grappling with the idea of buying versus renting, or you're curious about how the influx of skilled workers is reshaping our labor market, this episode promises vital insights. Plus, we share a heartwarming tale from our own festive company gathering, reminding us all that, despite the economic whirlwind, the heart of community remains steadfast.

Ever wondered how the surge of new Australians is transforming the suburbs? You'll be intrigued to discover why areas with train lines are witnessing a magnet-like pull, attracting residents who depend on public transportation. This shift in urban dwelling patterns is more than just a statistic; it's a narrative about accessibility, convenience, and the evolving identity of our neighborhoods. We'll guide you through these changes, offering advice on whether you should seek the solace of quieter areas or embrace the vibrancy of these bustling communities. Join us for a candid discussion on the ripple effects of population growth and how it's influencing the very places we call home.

Transcript

Speaker 1: 0:01

Big topic in our office over the weekend was we've seen the biggest influx in 70 years in population. And the conversation is are we seeing foreign investors as buyers, as real estate agents? So the million dollar question, billy, it is what?

Speaker 2: 0:42

do you reckon it's astounded by the rate at which our country is growing? What a beautiful, beautiful sight to see.

Speaker 1: 0:51

It's 1950. In 70 years we haven't seen that much growth. That is just, I think, 600,000 people in one year. Yeah, it's an astonishing record of people coming to the country. I was also reading yesterday on the back of this that there are countries like Switzerland that pay people to come and live in Switzerland and move. I think they were paying 35,000 for an adult and 17,000 for a child. Yeah, it's pretty crazy. It's on his country's out there that wanting people to come so badly. No one's coming. They said we will pay you. We don't have that problem in Australia, thank God, and I know we think we have a problem. But just the sheer fact that that many people want to come to this land for opportunity is incredible.

Speaker 2: 1:42

Yeah, yeah, there was 621,000 or something like that, a change of 2.6%. A fast. There you go. Fastest growth recorded in the last 70 years, which is bonkers. I want to know where they're all coming from.

Speaker 1: 2:01

There I'm finding well, first of all, where we're going to go with. This is how it's affecting property at the moment, particularly with prices, talking about rentals as well, but I'm finding there's a lot of Asia. So I actually find every 5 or 10 years is a different style of immigration or area. I feel like that the government almost cherry picks where they want everyone to come from, and certainly with our family Serbian heritage, there was a stage where there was a truckload of us coming in plant loads, truckloads, train loads, and then there were stages where there was heaps of people from the UK. I think that's probably been the most fluid the whole way. There was a stage where a bucket load of Italians came in Greeks, chinese, then it went to Indonesian, then it went a lot of Thai, nepalese, indian, lebanese, a lot of skilled workers, though yeah, very highly skilled people, and definitely want to work hard.

Speaker 1: 3:13

Well, I do think they bring beauty to the country. I think we have a problem with the labour problem. We couldn't find anyone to do anything and I think it helped with labour. We certainly don't hear people complaining about it. Now there's labour out there. Yeah, you think about?

Speaker 2: 3:36

your local coffee shop, there was always a poster on the door. Yeah, always, not so much. Now, going to property prices, are we witnessing a Chinese influx? Well, we're witnessing a bit of an influx from everywhere, to be honest, and that's obviously partnered with a pretty low supply environment, both on rentals and sales, and that is creating a bit of a shortage in some areas.

Speaker 1: 4:05

Yeah, bear in mind if you are a foreign investor, so to make it a permanent residency for quite a long time. But if you're a foreign investor you're paying 8% stamp duty on top of your 4%. So you're hitting a 12% stamp duty to buy something except for a million bucks. You're paying 120 grand in the stamp duty if you want to buy in Australia. So it's a little bit hard. I do find as a real estate agent on the Northern Beaches, that people are reluctant to buy private schools. They love to buy around private schools, they love to buy around train lines and we don't have the train line system around our burbs and probably those sort of elite schools in private schools. In Sydney we're not running either. So that heavy investment. We're seeing huge price increases and it is happening in Sydney. We're seeing it around the eastern suburbs, we're seeing it around that sort of Boston North Shore there inner city circle, northern Beaches.

Speaker 2: 5:14

Our B line is still running. However, god bless it, it's as a train. Yeah, it is interesting, I think. At this rate, though, with the rapid growth we're seeing 2.6% from the calendar year in June, 2023 growth they are obviously going to need to look at and address housing supply, and I think that's obviously being talked in another topic, but it'll be interesting to see what happens.

Speaker 1: 5:45

Yeah, I think people are attributing the rental crisis to the migration in-flight. Yeah, they're definitely related. But I do think affordability is coming to this now as well, where, when you triple the interest rates of buying something so if you are to buy something to hold, that something that you're buying is costing you three times more People are more reluctant to buy and and it's much easier to rent. So, you know, repayments have tripled on people that are, that are owner occupiers. So that opportunity to purchase, you put that on the shelf and you just rent. So I think it's been a bit of a double header. Yes, there's been more people coming to this lovely country, but, yes, people going, I'm not going to be buying something, I'm gonna, you know, get be renting something cheaper.

Speaker 2: 6:36

Happy to rent it is. It is cheaper when you look at it and then you've got the flexibility to work that in if you are on. So in terms of a visa, to have flexibility and move so you can rent. You know, rural you can rent, regional you can rent. See in in the city, change cities. I think it's a no brainer and also I'm building.

Speaker 1: 6:57

We have our weekend away. Our Novak Christmas party was on on the weekend. We're actually they still here. Yeah, give some, give people a sneak peek show you the house. Oh, have a look, there she is. Can you see her?

Speaker 2: 7:15

Can you see her there oh?

Speaker 1: 7:19

look at this road. I can. I can sort of see the house there. Another, this beautiful road. We're in the back of berry guys. All went well. What can go wrong when you get 40 people together on a Christmas party? Not much, not much.

Speaker 2: 7:39

Have you um? Have you seen changes like this in terms of population that roll into other things, affordability, into supply issues?

Speaker 1: 7:48

I think we've always, we've always experienced it, um, but the scale of what we've seen lately has been impressive. But, but bear in mind, there's been a huge influx, but we did lose people out of the country as well. So we are playing a little bit of catch up. We're definitely past that's where you know we're. They're in way way in surplus, um, but I am a big fan, um. I actually don't see that money coming in and competing with People on a purchase level, but I see that money, that money coming in and people working their heart out, saving their heart out, and then, um, renting something. So I yeah, you know it's certainly affecting the rental market, not, as, as I said before, not as much as I think not as much as seen.

Speaker 2: 8:30

Okay, there you go. Good, good topic. Um, yeah, certainly not a Chinese influx, but an influx nonetheless. And um, it'd be good to see what other areas of experiencing is. I think this is a topic that would change.

Speaker 1: 8:44

Yeah, it seemed to be around that train line, from from suburb, suburb, and I guess you know what. If you're coming from another country and you don't have a car, the most likely thing you're going to do is go somewhere where there's a train. So I think if you want to stay away from that influx, stay away from train lines. If you want to be part of that influx, stay near train lines. There you go. That's summer Love, you See you.