Australia has an obvious environmental advantage, especially Melbourne, where the urban greening rate is as high as 40%, and it has won the ranking title of the economist think tank “The World’s Most Livable City” for seven consecutive years. The quality of life here is significantly higher than other cities.
The Economist Intelligence Unit Index is the most authoritative city evaluation system in the world. Among the 140 cities in the world, they are ranked according to the scores of urban social stability, medical care, culture and environment, education, infrastructure, etc. In 2017, Melbourne scored 97.5 points in the 100-point liveability index. In this ranking, Sydney fell out of the top 10 and ranked 11th.
The City of Melbourne has developed a series of plan outlines for the development of the real estate industry in the ten-year construction and real estate industry, including redevelopment and replacement of existing public housing construction, in order to speed up the operation of the railway from Melbourne City to nearby towns. In addition, the Victorian Taxation Office announced that it will increase the amount of stamp duty deductions that can be levied on the purchase and sale of houses, which is tantamount to giving people who buy mid-to-low-end housing in Melbourne more room to buy. Therefore, Melbourne’s economy for ten years is expected to show a predictable and continuous growth trend. As the second largest choice of Australian real estate, the real estate prospects are increasingly catching people’s attention.
What is nearby
What is being built or is being planned in the nearby area may have a favorable or unfavorable impact on the investment house you buy. You can log on to www.infrastructureaustralia.gov.au to check. This site contains links to all infrastructure planning departments.
Take the two districts of Melbourne, Point Cook and Tarneit, for example. Melbourne’s top priority projects are basically in the direction of the West District, mainly engineering projects related to road widening construction. It can be seen that Melbourne has placed the West District reconstruction plan on the top. In addition, with the concept of “get rich, build roads first”, regional construction and development can be seen. It can be seen that real estate in southwest Melbourne will be the best investment choice.
What is the value of the property
The selling price of a set of real estate is not necessarily its true value. Investors can apply for real estate valuation to estimate the true value of the house. The current housing market in Melbourne shows that apartment projects are often underestimated by 30% of the selling price, so when making loans, investors often have to prepare more cash because the valuation is much lower than the selling price;
The reason why independent land villas are so popular in Melbourne is the value of their preserved land, which can basically be estimated at the time of loan. Therefore, before buying a house, an independent and certified appraiser can be commissioned to assess the value of the house. It is easy to verify whether the investment house is worthwhile and reduce investment risks. (If necessary, you can consult Wanjia)
There is also the need to understand what is happening in the local area, which will have a direct impact on the real estate market, which may be negative or positive. This requires investors to conduct on-site research. Learn about the local business district, look at the style of local businesses, and assess whether the local middle class has entered there or has the intention. You can also go to the Australian Bureau of Statistics website www.abs.gov.au to view local demographics, crime rates and employment rates.
What is the rental return potential
If a professional evaluates your property’s weekly rent at $400, this does not mean that the property will receive so much rent. Investors can use Domain and Realestate to check the rent of similar local houses, or ask independent agencies to do rent assessments. The price of a property is usually overestimated or underestimated, but rent assessment can help investors obtain a more accurate valuation.
Pursue asset appreciation or rent return
Investors need to consider whether the purpose of the investment is more about rental return or asset appreciation. In the case of investing in multiple properties, it is more wise to choose asset appreciation. Although rent can help investors to provide housing, but can not help investors buy new houses. Compared with Melbourne, the rent of urban apartments is slightly higher than that of suburban villas, but due to the preservation of the value of their land, the value added of their assets is much greater than that of apartments.
How competitive the market is, if there are too many investors in the market, the rental return will be reduced, which will also cause problems for asset appreciation. Investors can contact the local government to inquire about how many homes are local.
What is included in the property rights investigation
Don’t assume that everything in the house is included in the sales contract. Investors should determine what specific items are included in the sales contract. When investing in apartment properties in Melbourne, you need to check whether parking spaces and storage rooms are included in the contract, so investors should also check these details when doing property rights investigations.
The best way to avoid this when investing in a Melbourne apartment is to ask for a Community Management Statement, which will clearly state the allocation of parking spaces and storage rooms throughout the apartment building. You can Let the lawyer or transferor responsible for the transfer of property rights include these in the contract.
What is the status of the property fee account
Melbourne Apartments require thousands of Australian dollars in management fees each month. These fees are deposited into a debt service fund account to cover the maintenance costs of elevators, floors and carpets. Investors have the right to view the report of the homeowner committee (Body Corporate Disclosure) to investigate the cost of real estate fees and the future planning of the real estate.
Investors can also check the records of homeowner meetings, which will reveal whether the house has structural problems such as concrete problems or elevator damage. For debt service account, investors need to check the balance of the account and whether it is enough to pay for future planning.
Investors need to understand the housing needs of potential tenants. If investors want to buy an investment house near a university, they need to find a house that can accommodate multiple tenants and is close to public transportation facilities. If the potential tenant of the investor is a family, you should look for a larger house with a garden and a spacious living room.
