Foreword
For Chinese investors, the global allocation of assets is almost an inevitable choice; and among the multiple choices of global asset allocation, residential properties in Australia have always been popular and stand out.
For Chinese investors who are not familiar with Australian real estate, cross-border investment will inevitably make people feel difficult at first glance, but in fact, Australian real estate investment is already a very mature industry, with perfect and sound rules and regulations.
Advantages of investing in Australian real estate
In Australia, most properties also have freehold property rights and are a high-quality asset that can be passed on from generation to generation. In addition, Australian real estate has unique advantages:
Perfect and reliable market record
In the Australian real estate market, ranging from regional average prices to small land transactions, piles and pieces have more than 100 years of government records and computer data within 40-45 years.
Stable price growth
According to the statistics of the Bank for International Settlements (BIS), in the past 50 years, only 7 economies in the world have been able to achieve an average annual price increase of 8% -10%, and Australia is one of them.
With long-term scarcity
Land resources in metropolitan cities are very limited, and natural population growth and international migration have kept Australia one of the fastest-growing developed countries.
National culture and government policy
Australia is one of the countries with the highest homeownership rate in developed countries. People here always have the “Australian dream” in mind-owning their own houses.
The Australian government also strongly encourages real estate investment. It is one of the very few countries in the world that implements negative tax deductions. It allows real estate investors to receive tax relief and it is easier to obtain healthy cash flow.
Three major misunderstandings
Most real estate investors own multiple properties
In fact, according to the analysis of Propertyology, more than 90% of the 2,156,319 real estate investors in Australia own only one or two properties. Only about 20,000 investors own six or more properties.
In addition, professionals added that if a politician suggests increasing taxes on investment housing, then they are actually rushing towards the ‘big fat cat’ who holds a lot of real estate. These cumbersome policies are actually an unfair harm to non-professional investors who only own one or two properties.
Real estate investment is only suitable for high-income people
Speak with data. According to the government website, the average annual salary in Australia is A $ 82,000. However, of those who only own one set of investment properties (about 1.5 million Australians, accounting for 71% of the total number of investors), about 40% of their annual income is less than 50,000 Australian dollars. In 2017, 78% of all property investors had an annual income of less than A $ 100,000.
These data show that real estate investors are not the only ones with ultra-high incomes.
Real estate investors are mainly retirees and baby boomers
The fact is that the number of investors over 50 and under 50 accounts for half each. According to previous records, although only 6% of investors are under 30 years old, 21% of investors are between 30 and 39 years old, and 24% of investors are between 40 and 49 years old. 51% of investors are under 50 years old, and the remaining 49% are over 50 years old.
