As the most livable country in the world, Australia is favored by immigrants from all over the world for its safe and comfortable environment, friendly and civilized people, good education, and no natural disasters. Australian real estate has stable appreciation, high rate of return, lifetime ownership, one-time government taxation, no inheritance tax, etc., which can fully meet various purposes such as investment, tourism, self-occupation, and study abroad. Buying a house in Australia, the choice of real estate type, presumably is a matter of entanglement for all investors. Today, Wanjia will analyze the return on investment of Australian real estate from several perspectives.
Several angles
From the perspective of value-added housing: as investors, our primary goal is profitability. Both apartments and villas are appreciated. According to official data, condominiums in Australia have grown by an average of 8% -10% per year over the past 40 years. The increase of villas reached 10% -12%. The location of apartments and villas is as important as the future development space. The surrounding environment of the house, transportation, finance, education, medical care, shopping and other supporting facilities are all important components of enhancing the value of real estate.
Analysis from the perspective of rent return: In the Australian real estate market, the main groups of apartment renters include: international students, new immigrants, single white-collar workers, etc. Therefore, apartments in urban areas usually choose convenient shopping, well-developed commercial areas or schools. Due to the high rental demand and the future development potential of the region, the Point Cook area has become a hot spot for investment. In the area, the average annual appreciation rate is 4.07%. After the completion of the university city, the annual growth rate is expected to be as high as 14%, the return of 3 room rents is as high as 11%, and the return of 4 room rents is as high as 12.5%.
From the point of view of property management costs: When purchasing a two-bedroom apartment in Australia, an annual property management fee of several thousand Australian dollars is required, but you can enjoy the free maintenance of swimming pools, saunas, spas and other fitness facilities and public facilities in the apartment. It can be seen that both the apartment in the urban area and the villa in the suburbs have their own strengths and weaknesses. Australia ’s attractiveness to Chinese businessmen is huge. It is deeply influenced by its high-quality living standards, superior business environment, multicultural social environment, fair immigration policy, good educational facilities, and the development of new immigrants. Attracts immigrants from various countries, especially Chinese citizens. The increase in high-net-worth individuals, the need for cross-border diversification of asset allocation, and the continued fever of the Australian real estate market have made investors to carefully consider how to choose advantageous projects and how to effectively avoid risks. Of course, it is indispensable to seek a professional investment platform, because they can help them reasonably realize the appreciation and preservation of assets.
Today, the overseas asset allocation of Chinese households is currently only 4% to 5%. Compared with other countries, buying a house in Australia is relatively easy. The down payment only requires 10%, and the remaining part, as long as you have a fixed job, stable income, up to 80% of the loanable property. Therefore, it also attracts a large number of overseas investors. From this point of view, investing in Australian real estate is a very wise choice.
Regardless of how the outside world interprets the future of the Australian property market, there are no signs of recession in the current Australian property market. Although property prices in Australia are already very high, as long as the property is properly selected and managed in an appropriate manner, it is still possible to obtain very stable and considerable returns.
How to calculate the return on investment in Australian real estate?
There are many ways to calculate the return on investment in Australian real estate. The calculation of the rate of return is an important reference basis for measuring whether the property is worth investing. Generally, there are the following three calculation methods:
- Calculation method of income model
Return on Investment = (Monthly Rental Income-Mortgage Monthly Contribution) * 12 / (First installment + mortgage payment within the installment period)
- Calculation method of ROI
Return on investment = (monthly rent after tax-property management fee) * 12 / unit price of purchased house
- Calculation method of investment recovery time
Investment recovery years = (first installment payment + mortgage payment within the installment period) / (monthly rent after tax-monthly mortgage payment) * 12
For Australian real estate, what factors have the greatest impact on the investment potential of real estate?
- Population growth potential
The population size of a region / city will play a decisive role in the development of real estate in this area, because the number of people is the rigid factor for maintaining real estate, which is true in any country. A simple example is domestic. With the continuous advancement of urbanization, more and more people are choosing to enter the city. Almost all the upper-scale urban houses are in short supply, and the house prices are like wild horses. Close.
- Regional development potential
Although real estate development requires a certain population size, in over-mature areas, due to the scarcity of various resources including land, it will also restrict the development of real estate. If the city focuses on developing an area, no matter how bad the location of the place is, it can always be developed.
- Education export potential
The existence of international students is also an important component of real estate investment returns. Therefore, the educational export potential of a certain area also provides conditions for the prosperity of real estate. After all, the purpose of many buyers choosing to buy a house is to enable their children to receive a better education, which is the charm of school district housing. Although there is no strict concept of school district housing abroad, schools are also divided according to address, even if not. It is always convenient to live near the school.
In fact, these factors can be established in any country, so if you are buying real estate for investment purposes, these factors must be paid more attention to and considered in more detail.
What are the ways to rent a property in Australia?
For applicants who want to invest in real estate in Australia, if they buy a house just to wait for appreciation and then sell it, then Australia will charge a certain vacancy tax on the house, which is very inappropriate. Therefore, Australian real estate investors generally choose to rent out their properties, so what are the general ways to rent out Australian properties?
- Developer promises to lease
In order to promote sales performance, many foreign developers promise to lease services, and the return rate is generally around 5%. This kind of house is the one with its own lease. After buying the house, you can get the income. Many buyers will not even go to inspect the property. After all, it is for investment, as long as the return rate is considerable.
- Entrust the leasing company
If the developer does not promise to lease, the owner can entrust a professional leasing company in Australia. Such advantages and disadvantages also exist. The advantage is that you do not need to take care of yourself, saving time and effort. The disadvantage is that you need to pay a certain management fee. If the company does not rely on In terms of scores, there may be more terrible things later.
- Owners rent out
The owner may have friends, relatives who want to rent a house, or find a suitable tenant. The biggest inconvenience of this method is that you need to take care of yourself, but many owners do not live in Australia, there will be many inconveniences, and some legal issues in the process of Australian property leasing may not be very familiar, which requires professionals Guided.
However, no matter what method is adopted, don’t forget to pay taxes. In Australia, if the tax breaches, the problems faced will be very serious. This must be remembered.
