Australia's real estate market has been increasing at a relatively stable rate every year since its marketization. It doubles every seven years. On the one hand, most of the demands for the Australian property market are from the basic demands of the local people. On the other hand, Australia is one of the most open economies in the world, being thirsty for the introduction of talents, and its perfect market system and social welfare also attract a large number of overseas high-quality immigrants each year. Under a healthy legal system, few of speculation and the strong demand make relatively less risk of the capital and stable income for the Australia real estate.
Apart from that, the means of investment in Australian real estate is also very flexible. With the advanced financial system as the support and the strict legal system as the guarantee, every link in the Australian real estate market, such as international transfer, bank credit and legal consultation, is relatively simple and flexible. Such institutional guarantee has greatly lowered the threshold for investment in Australian real estate market, making investors more comfortable in capital management and operation. For decades, the real estate market in Australia has been developing healthily and well. According to the statistics of the Australian national bureau of statistics, since 1960, the housing price in Australia has been increasing at an average annual growth rate of 10%. This good and stable development trend has promoted the long-term healthy development of the real estate market.
Australia's rapid economic growth over the past 16 years, coupled with low inflation and unemployment, has made it one of the most dynamic economies in the world, according to the OECD. Australia's real estate market is different from that of any developed country. It belongs to a kind of highly transparent market with a very good economic order and investment environment. It has a world-class financial system, a high-quality labor market and a reasonable tax system. In recent years, Australia's economy has been growing at an annual rate of around 4% and its unemployment rate has hit a record low of around 5.9%. In the international EIU's "business environment quality" assessment, Australia scored 8.21, the same as Hong Kong, lower than Singapore's 8.4 and higher than Japan's 7.57. Stable and strong economic development and low unemployment rate bring great rigid demand to Australian real estate market.
Australia's population growth rate is still rising, but the number of new homes being built is far from enough.
Because the supply of the housing is lower than the demand, the supply gap is 178,400, but it is expected to widen to 600,000 in less than two decades. In the past 5 to 6 years, the average annual increase of Australia population is 376,000, and most of them are immigrants. According to the current population growth rate, the housing supply will continue to be tight, and the housing problem of the population will surely drive the demand for Australian real estate.
1 Permanent ownership of property
The Australian government recognizes private ownership and protects the safety of private property. Private property means a permanent property right. Whether a building or a villa can be passed from generation to generation without worrying about being torn down or the issues of expiration for the right to utilize.
2. High transparency of relevant information
Australian real estate is listed in the first category of "high transparency" in the world. Detailed data of developers and real estate can be found through the website of corresponding institutions, including transaction prices of surrounding real estate, original nationality, education level, income status, age structure and occupation of residents. Highly transparent information can be used as the theoretical basis for rational analysis, making it easier for buyers to buy the house they want.
3. Low holding tax, no estate tax
Many people worry that buying Australian property will bring about high holding tax, but this is not the case. The reason for this concern may be the deep influence of American real estate. Australia and the United States are very different. American real estate is characterized by low purchase price but high holding cost, while in Australia, the purchase price is slightly higher than that in the United States, but the holding cost is much lower. There is no estate tax for children to inherit the property, only stamp duty, which is about 4% of the property price (different states have different taxes, and the above-mentioned tax is the standard in New South Wales). This is totally affordable.
4.There is no need to decorate, just move in after settlement
The houses bought in Australia must be well decorated. Simple decoration is enough, and the standard of fine decoration is higher. Even ovens and dishwashers are included, the buyers can live directly after settlement, saving the energy for decorating the house for one month. At the same time, in Australia, with the exception of a small number of mini studios, formal houses, no matter how many bedrooms, apartments or villas, all have garages (parking spaces), and some have more than one. So you don't have to spend extra money on it, and you don't have to waste time looking for a parking space while coming home from work every day.
5.Excellent quality.
If you have been to Australia and seen old buildings built with red bricks, look carefully for clues, and some of the old buildings will have the date of construction written on the outside. I have seen the red brick building built in 1875. It looks dull on the surface, but the quality is totally fine. It is absolutely unimaginable that the building is more than 100 years old. In the old residential areas of Sydney, there are many houses over 100 years old, and they all look very tough. I have to admire the inheritance of the spirit of craftsman in Australia.
6. The usable area is only calculated, there is no shared area
The price of Australian house without shared area is the whole set of price, not the unit price per square meter. Area serving as an index can also be checked, but only has the usable area, without floor area, also does not have the shared area. Accordingly, the figure of area for Australian house shows small, while the feeling of living in it would be different, which has very big differences from China.
4. The down payment is low, pay the loan after the settlement
Only 20% of the total house price is required for the down payment, and the other 80% can be used for the loan. The Australian government protects the vulnerable groups. Instead of paying off the loan immediately after signing the purchase contract, the buyer pays back the loan only after getting the key, which is safer and more reliable with less economic pressure. Therefore, if you buy a house in Australia, you can totally rely on the rent to pay the mortgage. Most Australian Banks are willing to provide 80% of the bank loans and can only pay the interest but not the principal. In recent years, the interest rate of Australia has been kept at a low level (the current benchmark interest rate is 2.5%), and according to the government report, the Australian government will maintain the low interest rate policy for an extended period of time to promote the economic growth of Australia. This will also be a strong support for Australia's housing market growth.
7. High rental returns
Different from China, Australia has a mature rental market. Basically all the work can be left to the real estate agent to complete. Agents will issue advertisements, review applicants, sign contracts, check the premises regularly, contact maintenance, and demand payment. So you don't have to worry about renting. In addition, the vacancy rate in Australia is quite low. For example, the vacancy rate in Sydney is lower than 2%. In Australia, under normal circumstances, the rent of a house of 500,000 Australian dollars is 500 Australian dollars per week and 2000 Australian dollars per month. For a property of 600,000 Australian dollars, the weekly rent is 600 Australian dollars, and the monthly rent is 2,400 Australian dollars, and so on. With the current loan interest rate in Australia, under the condition that the loan is 80% and only the interest is paid, as long as the annual rental return reaches 5%, it can basically support your loan interest and other expenses. At the same time, the rent in Australia basically increases by 5% every year, and the increased rent can be used to deposit in the offset account to offset the principal. Imagine that as your rent goes up each year, your principal goes down and your interest goes down. Rent rises, interest falls, and gains will show inverted pyramid to grow.
5. Excellent post maintenance
All living quarters in Australia are clean and tidy, and the ones that have been in place for more than ten years still look like new ones. On the one hand, residents cherish, more important point is the property management in place. Daily cleaning, regular cleaning carpet, well-maintained swimming pool and gym, and careful fire safety checks all ensure that residents have a safe, comfortable and clean living environment.
10. Real estate prices rise steadily with little risk
According to many official statistics, the Australian real estate price increases every 10 years on average, which means that the real estate prices will double every 7 to 8 years. In fact, Australia was the only country in the Asia-Pacific region not affected by the Asian financial crisis in 1997. Even in the global financial crisis in 2007, the Australian median housing price market was not impacted, and even some regions went against the trend. According to a recent report by JonesLane Lasalle, it is very safe to invest in real estate in Australia. According to property rights reference, for the legal aspects and purchase procedures, the Australian real estate market has become the most transparent market in the world.