Bitcoin Frenzy

Property owners in Australia are accepting bitcoin to sell their properties.

The first property in Victoria was ready to accept bitcoins of $2.5 million AUD in value. Jordan Williams, the principal at Kollosche Prestige Agents is selling a waterfront mansion on the Gold Coast with a listing price of $5.15 million AUD or equivalent to 500 bitcoins. See the property here – https://www.domain.com.au/64-the-sovereign-mile-sovereign-islands-qld-4216-2013399207

Bitcoins have joined the real estate market across the world and is beginning of cryptocurrency in which Australia is now apart of.

So what is a Bitcoin?

So a Bitcoin was the first cryptocoin currency ever invented, in 2009 by a suspected developer called Satoshi Nakamoto whom has abandoned his Bitcoin fortune. There are hundreds of other various cryptocurrency coins that are classified as Altcoins because they are alternative types to the one and only Bitcoin.

A week ago, when I checked the value of a Bitcoin, it was worth around $30,000 AUD per coin. As of today whilst, I am writing this post, bitcoin and other cryptocurrencies are being heavily sold off because of the major regulatory crackdown in South Korea.China is also following the moves by the South Korean government by restricting the trading in digital currencies.

As Bitcoin has now fallen more than 20 percent and is experiencing Bitcoin owners selling amidst of fear. Imagine if someone sold their property and accepted Bitcoin in full payment of say $2 million AUD, the owner may only have $660,000 worth of cryptocurrency in their pocket.

Rob an owner of a property that is accepting Bitcoin said that Bitcoin could be a deciding factor if there were multiple parties, at their borrowing capacity, Bitcoin would be accepted. Bitcoin is currently not classified as an asset by the Banks. Australia is looking at Japan in developing ways to regulate cryptocurrencies.

Although Bitcoin and other cryptocurrencies are decreasing in value as of today 17/01/2018. The technology of a cryptocurrency has limitless potential to what it can become, an international digital currency system for trade and services or a dangerous trap for your wealth to melt away.

What are your thoughts on Bitcoin? Perhaps it is a good way to market property by saying you’re accepting a cryptocurrency, oooh lala, then people will start to write about you.

Disclaimer: the following blog article is written from research, my opinion and should not be used as a definite source of information. Readers are encouraged to conduct their own research and find professional advice on any given topic.

For more updates on the property market, Real Estate services in the ACT, all things property for tenants and property investors and anyone interested in learning more.
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JeffreySong@UrbanTownEstate.com.au

A Shift in Tide

Recent policy changes by Australian State and Federal level taxation will affect the demand from foreign investors notably, Chinese investors. Credit Suisse, a leading financial services company, estimates that Chinese investors make up 80 percent of the properties purchased by overseas investors.

The changes in taxation will inevitably affect the demand for property investment in Australia for 2018. The NSW stamp duty for foreign investors has increased from 4 percent to 8 percent, accompanied by an increase of land tax from 0.75 percent to 2 percent. The May budget 2017 introduced by Scott Morrison, the Treasurer of the Turnbull Government, included a change to capital gains tax exemption for overseas buyers and a 50 percent ownership cap for new residential developments. The May budget also included a ”ghost tax” which gives the Australian Taxation Office (ATO) the ability to bill foreign investors of up to $5,500 per year if they leave their properties unoccupied and up to $52,500 for failing to lodge forms such as tax return that includes the total income and expenses of their rental income.

The changes in taxation policies in Australia, accompanied by policy changes in China, that aims to control capital shifting abroad will inevitably affect the demand for property investment in Australia for 2018 which means the housing market could see falls in value. The fall of demand from overseas investment means that developers of properties may have a lower return on investment. The fall in demand also means that it may be an ideal time for first home buyers to step into the market. The potential decrease in demand from overseas investors also means that current property owners may see their property value decrease or remain relatively stagnant during 2018 and to a lesser extent for cities that are in their own cycles.

Only time will tell the true implications of these policy changes.

Disclaimer: the following blog article is written from research, my opinion and should not be used as a definite source of information. Readers are encouraged to conduct their own research and find professional advice on any given topic.

For more updates on the property market, Real Estate services in the ACT, all things property for tenants and property investors and anyone interested in learning more.
Follow us on https://www.facebook.com/UrbanTownEstate/

JeffreySong@UrbanTownEstate.com.au