In recent years, more and more investors have turned their attention to overseas real estate investment. Among them, Australia is considered to be the most popular and most promising country.

The advantages of “permanent property rights, no inheritance tax, private land and property, and high annual return on investment” have made many people feel at ease. Especially after comparing the huge differences between Chinese and Australian properties, more and more people are paying attention to Australian real estate and preparing to invest.

Today we will compare, what is the difference between China and Australia real estate investment?
High transparency of information
Australia’s real estate industry ranks as the world’s first information is highly transparent, construction costs and housing prices are basically completely transparent and controlled, and the profit rate has a clear legal scope. The corresponding agency website can also find detailed data of developers and real estate, including the education level of the surrounding residents, age stratification, occupational structure, etc., which can be used as the basis for rational analysis.

In addition, Australian housing prices are developed by a multi-party, will be publicly quantified by banks and other professional assessment agencies, and the government departments have long-term statistical analysis of local housing prices, the entire house price and profits are basically completely transparent.
Permanent property advantage
Australia: Australia is a British common law tradition and private ownership is its core foundation. Most of Australia’s land is privately owned. The owner owns the permanent property rights and inheritance rights of the land and has no inheritance tax. Moreover, it is one of the few developed countries in the world without property tax, which effectively reduces the cost of long-term holding.

China: According to the provisions of the Chinese Land Administration Law, the term of use of residential land in China is 70 years. That is to say – you are not buying a house, but the right to use the house for 70 years. After 70 years, the land will be returned to the state, and the renewal fee is not fixed.
Low down payment and flexible portfolio
Australia: One of the most attractive overseas investors is the low down payment for the purchase of real estate, flexible portfolio, low investment risk and sufficient financial leverage. A 10% low down payment is affordable for most people. Compared with stocks, funds, etc., real estate is the most stable investment project, and Australia’s 10% down payment is deposited in the trust account, subject to government supervision, and interest can be taken, completely risk-free.

After buying a house, you can easily rent a raise, or even cash out from the bank through the value-added part to achieve the “two sets of one suite, four sets of four sets of” portfolio, using financial leverage to maximize profits.

In Australia, due to various factors such as government regulation and economic stability, the trend of housing prices is quite stable, doubling in about seven to ten years.

China: When subscribing to a property in China, the down payment varies between 20% and 50% depending on the city and property category. Although in the cities without a purchase restriction, the central bank cut the down payment ratio to 20%, but the large investment-restricted cities with high investment still have a relatively high down payment ratio.

In addition, the proportion of down payment for the second set of purchases and the third set of purchases will increase significantly. Because increasing the down payment ratio has become a means for the government to regulate the housing market to avoid overheating of housing prices, in order to achieve the purpose of suppressing real estate speculators.
Strict control of construction, low vacancy rate
In recent decades, the annual increase in Australian housing prices is also closely related to the number of immigrants. The annual population growth has greatly boosted domestic demand. However, the Australian government has strictly controlled the amount of housing approval, but the construction volume of the housing is far behind the population growth, and even led to The situation is difficult to rent.

Australia: According to the Australian Real Estate Information website Domain Group, the vacancy rates in Australia’s major capital cities are below 3%, and the average vacancy rate in some areas of Brisbane is even less than 1%!

China: China’s urban housing vacancy rate report in 2014 showed that the vacancy rate of the urban residential market in China reached 22.4%, and the vacancy rates in Shanghai and Beijing were 18.5% and 19.5% respectively. It may be higher now.
Standardized housing operation market
Australia: The government has strictly regulated the qualifications of personnel engaged in the real estate industry, including lawyers, agents and brokers. Professionals engaged in real estate activities must have a certain degree of education, corresponding practical experience, and pass the examination to issue a qualification certificate, which can be practiced after registration and is very standardized.

Whether it is buying a house or selling a house, Australia has the most comprehensive system to protect property owners. For overseas buyers, the clear and transparent operation market guarantees the safety of investment. Buyers do not have to worry about themselves, and they can fully invest overseas without leaving their homes, that is, worry-free and assured.

China: In China, buying a house is generally done at a real estate exchange. There is no professional lawyer involved. If investors don’t understand the details of the contract, things that fall into traps and disputes often occur in the future.

People who are unfamiliar with Australia will be concerned about whether there are legal risks in buying a property in Australia. First, Australia has a strong system of verification and checks and balances, as well as a respected judicial and law enforcement system, as well as an open, effective and transparent legal framework. In addition, Australia’s housing market is subject to strict national regulation, and buyers are protected in many ways with less risk. Mainly reflected in the following aspects:
Australian real estate transaction compulsory lawyer intermediary participation

Australia: Buying and selling real estate must be through a qualified intermediary and involve a lawyer throughout the process. The purchase contract involves many aspects of professional knowledge. The general owner or salesperson cannot fully grasp it. Both parties must have lawyers. Even if there is no contract factor, it is mandatory to buy a house through a lawyer. In this way, the owner does not have to worry about illegal operations.

China: In China, buying a house is generally done at a real estate exchange. There is no professional lawyer involved. If investors don’t understand the details of the contract, things that fall into traps and disputes often occur in the future.
The first payment is deposited in an independent trust account management
Overseas people are most concerned about whether the down payment when buying an apartment is safe, which is completely reassuring in Australia. The law stipulates that Australia’s down payment must be in a trust account jointly supervised by lawyers and the government. Neither the developer nor the buyer can use the money.

If the buyer buys the house and pays the house, the remaining money will be paid before the acceptance is correct. In other words, the developer can only get money after passing the acceptance check. If the developer goes bankrupt or goes bankrupt, the government will return the customer with 10% of the down payment and interest, which is of high security and guarantees the most basic interests of each customer.

From the perspective of the previous environment, market and legal analysis, the Australian real estate market has become a risk-free, stable and safe investment option. In addition, Australia’s performance in the details of the treatment of the property is more worry-free.
Exquisite
Australia: All apartments are fully furnished. Apart from the basic hardcover, the Australian apartments are equipped with almost all the necessities like microwave ovens, dishwashers, dryers, natural gas, air conditioners, ovens, carpets, curtains and more. Simply add soft furnishings such as beds, sofas, refrigerators, etc.

In addition, the Australian construction industry is of high quality and has a strong sense of design. The quality of the local Australian developers is very good, the appearance is small, and can even be as new as ten years. Many of Australia’s largest developers are world-renowned, and the buildings they create are often amazing.

China: In China, most of the purchases are gross embryo houses, which require a lot of time, effort and money to decorate.
Late maintenance in place
Australia’s apartments and living quarters are very clean and tidy, decades old. On the one hand, the residents are cherished, and the more important aspect is that property management is in place.

Starting from the initial screening of tenants, the leasing management company will prioritize the quality of tenants and select high-paying white-collar workers with stable income to ensure the quality of tenants. In addition, the property management will carry out daily cleaning of the apartment, regularly clean the carpet, maintain the swimming pool / gym and other facilities, conduct fire safety inspections to ensure that the building maintains a safe and comfortable living environment.