Before interstate migration in Australia, home improvement was a business. After three months of renovation and resale, the profit exceeded RMB 400,000 (AUD 70,000-80,000). It is almost 5-10 times the annual income of the average office worker in China. Even if house prices are depressed, a capital for home purchase and renovation is still necessary. Friends often say that you can earn price difference by buying an old building in Australia, repairing it and reselling it, but I always say the house price in New Zealand and Australia can rise, even if you do not repair the house. But when prices fall, it is useless to fix the house. Because a lot of people in New Zealand and Australia can DIY repair, they often buy a house, and after they move in, they slowly use leisure time to repair the house. Most of the Chinese have empty houses, and interest and rent payments can outweigh profits if repairs are delayed. In Australia, people renovate their homes for no reason other than to save money. Do not expect to buy the old house, repair and then sell it to make money in Australia. Deducting the necessary costs and tax, it is very difficult to make a profit. House is fine, after the refit, the sell appearance and sell price can have a huge improvement.
With that, is it now possible to invest in real estate? If cash buyers can get a better return on a rental house than on a cash deposit, or if they can rarely find a satisfactory place to live on their own, so be it. If the investment house can be rent as a whole, the income rent may offset the loan and other expenses. However, at present, it's hard to find a home at this price, while subletting can earn a bit more money, it's also annoying to find tenants. If the house is vacant, you would be more anxious. As individual experience, investment house can be changed into two to three bedrooms with independent occupation, and the rent income and tenant turnover rate can make owner happy. If you want to live on your own, you can buy a house you like, however, if you still want to invest at the same time and get capital or loan permission, the first choice is the property with "money scene".
For example, a three-bedroom house costs about $450,000 and the rent is $400. A two-story, five-bedroom two-car garage house costs about $650,000, and the rent is $580. There is no significant difference between the whole rent or subrent deducting costs of the maintenance, water and electricity bills, net bills and council rates. Some people add more rooms for sublet to collect more rent (it is illegal to change building structure without permission to seek more profits, which is not suggested or is not popularized, and you must declare to municipal government to examine and approve, once it is approved you can undertake repairing and altering according to relevant law and regulation), but they often have to seek tenants and face the vacancy period. And the government penalizes the owners that rent houses for more than five different households. The return is about 3.5 to 5 percent, similar to cash deposits. So conservative cash buyers can take their time picking good bids.
Borrowers need to think again. If you have $250,000 with a 70% loan, you can buy a house worth of $650,000. Use $70,000 to $100,000 to renovate the house into a bedroom upstairs and a bedroom downstairs, and change a two-car garage into a suite. If there are five rooms upstairs, a room can be changed into a kitchen and dining room. Balcony corridor can be used as the place for washing clothes and basking clothes, and the big bathroom can be changed into the bath in suite, then there are still four rooms and one hall upstairs, which can be rent for $480 as a whole and share the charge of electricity, or rent for $550 containing water, electricity and network bills. As for the renovation downstairs, staircase can be used as walls, French Windows or back door can be used as access, the original large laundry room is used as a bedroom, and dining room compartment is used as a bedroom. The kitchen benchtop can be changed into the table, and the awning can be used as laundry and the place to dry the clothes, which include two rooms and one hall and may rent $300 sharing the electricity charge or $350 including water, power and network bills. The double garage can be converted into a suite, which can be rented as a whole for $250 plus the sharing of electricity charges, or $300 including the water, power and net bills and the total weekly net rent is about $1000. The annual net rent is about $40,000-$50,000 after deducting water and electricity charges, network fees and council rates and costs of maintenance. If you are afraid of too much loan, you can buy the house worth of $450,000, and the dining room and sitting room can be changed into bedrooms. The house with five rooms can be rent for $600 containing water, power and network, and you can earn $20,000 every year deducting the costs of water and electricity and network, council rates and the cost of maintenance, which is also enough to bear the loan interest, or you can live in one room and the other rooms are used for investment (it is illegal to change building structure without permission to seek more profits, which is not suggested or is not popularized, and you must declare to municipal government to examine and approve, once it is approved you can undertake repairing and altering according to relevant law and regulation). But if the housing price doubles in a few years, the asset value is different. Sublet competition is becoming more and more serious, due to supply and demand. Many cohabitants do not like sublet, and it is not easy to find the whole house and suite for renting, so it is better to rent it out as single rooms. The income is about the same, but the mode can exist longer and there's no trouble finding tenants. Rent collection also has a way, the contract of paying rents once a year can have a discount of 10%, and the contract of paying rents half a year can have a discount of 5%, which can be chosen by the tenants, and the landlord can also avoid often looking for tenants. Of course, the landlord should regularly clean the house and keep it clean, so that the tenant will stay for a long term.