The investment on Australian real estate is a systematic project, in which limited funds are invested into projects that can obtain the maximum stable return per unit time.
Due to the lack of sufficient information on the Australian market, investors who buy houses and invest in Australia, especially those who just come to Australia, usually resort to professional real estate agency to complete the whole process of buying houses.
According to the real estate investment experience of relevant senior agents, many investors in the Australian market do not know much about real estate investment, and it is common to follow the trend when the housing price rises, without realizing the maximization of investment interests and the minimization of risks.
So, how should we choose properties with high return on investment? How to find good projects with high growth potential, or how to judge the future trend of housing prices in a region?
In the mature overseas real estate investment market, professional and successful investors judge and analyze the market by the analysis of capital appreciation elements.
This value-added element analysis is based on the relationship between the strength of the impact on the value of real estate, selecting those market characteristics and factors that can promote the housing value.
To consider whether a property investment is successful, the following eight aspects are usually considered and judged:
1. Government planning: new railways, roads, bridges, shopping centers, schools, large projects planned by the government, and satellite cities, etc.
2. Employment opportunities: economic zones of knowledge, new shopping centers, hospitals, corporate headquarters, commercial office buildings under planning and construction, etc.
3, housing supply: long-term shortage of supply for the houses often appears
4. Population growth: high growth rate, steady increase in number, steady increase in income, large proportion of high-income groups, etc.
5. Transport facilities: near the railway stations, near the bus stations, near the ports and so on
6. Public facilities: shopping centers, schools, banks, hospitals, parks, libraries, entertainment facilities, etc.
7. Famous schools and enterprises: well-known middle and primary schools, universities, multinational companies or headquarters and branches of well-known enterprises
8. Landscape of humanities: mountain, water, lake, island, parks, scenic spots and so on.
The higher comprehensive scores are, the more expensive the house price will be. But because the purpose of buying a house in Australia is to invest the future of the house by rising house prices to maximize returns, in general, the places with the government planning, a large number of population and high rates of employment will get the largest investment value, especially the places that are about to start the construction.
In order to make a successful investment, municipal planning, employment opportunity, population growth and housing supply should be the most important considerations and tradeoffs among these eight factors.
Because any area having the powerful support of government plan will be given fresh blood of capital and increase the economic energy, bringing more jobs and the continuous growth of population, and eventually leading to the demand of self living and renting for local housing, which will stably increase the prices and rents of property.
Throughout the history of Australian real estate, it is not difficult to find such a common phenomenon: after ten or twenty years, the gap between the appearance of the city and the housing price of the two regions, which used to be very similar in all aspects, is getting wider and wider.
The main reason for this phenomenon is the employment opportunities. Large commercial centers are often found in areas with a large number of employment opportunities, and a considerable number of well-paid white-collar workers are willing to choose to live nearby, thus creating a large demand for local housing market, especially high-quality housing.
This will attract some senior developers to the local development, constructing a batch of real estate with good quality and beautiful appearance, which would make the development trend of the whole region better and rise the rents and housing prices.
Population growth and housing supply are the most direct factors that determine the trend of housing prices. When the population growth is much larger than the housing supply, it is difficult for rent and housing prices not to increase.
On the contrary, if there is a large housing supply in an area, and there is no factor indicating that the local population will increase significantly, then we should think twice before making investment.
It is worth mentioning that if it is an area where many plans are about to be started and constructed, it will have the largest investment value and the strongest investment advantage.
However, we should never put the cart before the horse when screening projects: we only value waterscape and mountain scenery while ignoring important components such as municipal planning.