By Steve Dellar  |  05-30-2018   News
Photo credit: Thorsten | Dreamstime.com

Years of soaring real estate prices for residential Australian homes are likely coming to an end as various factors are about to meet, according to the Foreign Investment Review Board (FIRB).

Firstly, the number of house buying approvals for foreigners have dropped from 40,000 in 2016 to 13,000 in 2017, and that drop is set to continue this year as the Chinese government is making it ever harder to get your cash out of Beijing’s controls.

<blockquote class="twitter-tweet" data-lang="en"><p lang="en" dir="ltr">Looking at what happened to real estate prices in Australia. This is good news for them <a href="https://t.co/TZoL1YuGEf">https://t.co/TZoL1YuGEf</a></p>&mdash; CuriousSquid (@Awesomepunjabi) <a href="https://twitter.com/Awesomepunjabi/status/1001695712302829569?ref_src=twsrc%5Etfw">May 30, 2018</a></blockquote>

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Secondly, Australian banks have come under fire due to the reports shown in the Financial Services Royal Commission, making it harder for foreigners to get lending.

Related coverage: https://thegoldwater.com/news/27220-Australia-NAB-To-Compensate-Customers-For-5-Hour-Outage

Lastly, given the popularity of Australian homes being bought up by foreigners, several states have recently introduced extra taxes on those purchases simply to prop up their own finances.

<blockquote class="twitter-tweet" data-lang="en"><p lang="en" dir="ltr">Real Estate - Foreign investment in Australia’s housing market collapses: FIRB <a href="https://twitter.com/hashtag/RealEstateForeigninvestmentinAustralia?src=hash&amp;ref_src=twsrc%5Etfw">#RealEstateForeigninvestmentinAustralia</a>’shousingmarketcollapses:FIRB <a href="https://t.co/PvNTt8XQCI">https://t.co/PvNTt8XQCI</a> <a href="https://t.co/X0qm9RzI20">pic.twitter.com/X0qm9RzI20</a></p>&mdash; REDS (@REDSRealEstate) <a href="https://twitter.com/REDSRealEstate/status/1001682908518715392?ref_src=twsrc%5Etfw">May 30, 2018</a></blockquote>

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In all, the Foreign Investment Review Board (FIRB) estimates that all these measures will mean that Australian homes have become less attractive for foreigners which will normally mean a steep price drop to come in the next few months and years.

<blockquote class="twitter-tweet" data-lang="en"><p lang="en" dir="ltr">Is Australia&#39;s China boom over? Chinese investment approvals fall for the first time in six years: tougher rules, fees and taxes on real estate to blame <a href="https://t.co/6IMhHpgVs3">https://t.co/6IMhHpgVs3</a> <a href="https://t.co/DsRLd5VnpQ">pic.twitter.com/DsRLd5VnpQ</a></p>&mdash; Jamie Smyth (@JamieSmythF) <a href="https://twitter.com/JamieSmythF/status/1001333869511983104?ref_src=twsrc%5Etfw">May 29, 2018</a></blockquote>

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Furthermore, Australia is set to follow the US when it comes to raising interest rates, and given that the Federal Reserve is raising those rates even faster than analysts had foreseen, it is likely that the price of a 25-year mortgage can as from this point only increase.

Source:

https://www.news.com.au/finance/economy/australian-economy/house-prices-set-to-tumble-after-buyers-flee/news-story/239b695952fd07ffd4b270fcfcdef637

Twitter: # KendallJenner #Drake #RoseanneBarr #QAnon #Pusha #Australia
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