“Ten Advantages” of Investing in Australian Real Estate, Don’t Regret It! There are many ways to make money. Some people will say that real estate investment is really not that easy! It takes time to invest in real estate, But it’s worth it in the long run, As your skills and experience grow, It also becomes easier And, most importantly, Most investors find that Building a real estate investment portfolio is a very interesting process! Image “The number of Chinese tourists visiting Australia has doubled in recent years, and the exchange rate of RMB to Australian dollar has dropped from more than 5 last year to the current 4.5, which is equivalent to a 20% discount. These have stimulated Chinese people’s desire to buy houses in Australia.” Experts say that there are four main reasons why Chinese go to Australia to buy property: First, Australia’s living environment and tourism resources, second, preparing for their children to study abroad, and combining investment and foreign exchange speculation, as well as vacation and leasing.

According to real estate experts, most high-net-worth individuals purchase real estate overseas through immigration agencies and international real estate consulting companies. Among the high-net-worth clients received by Jinding Australia, more than 60% chose to immigrants to buy property due to female education. Considering environmental pollution, the proportion of improving the living environment is also as high as 56%, followed by medical treatment and social welfare, accounting for 46% and 46% respectively. 42%. Among them, investment immigrants accounted for 77.4%. When it comes to buying real estate, statistics show that every year, many Chinese invest in real estate all over the world. Among them, mainland Chinese buyers spend US$129.3 billion on real estate purchases worldwide, which can be said to be the main force in the real estate market. In many countries, Australian real estate is one of the most popular countries for Chinese buyers. So what are the advantages of investing in real estate in Australia, and which factors will attract you to buy? Advantage 1: Good housing market environment When it comes to buying a house, it must look at the general environment of the real estate market. In Australia, the government has been paying attention to the real estate market and will introduce a series of policies to prevent the occurrence of real estate market bubbles. From the perspective of the historical environment of the Australian market, more than 100 years of sound and reliable market records, and the steady growth of house prices of 8%-10% in the past 50 years, are the guarantee for home buyers to buy a house.

Advantage 2: Stable rental income

Compared with the domestic real estate leasing market, Australia's real estate leasing period is shorter, and real estate appreciation is rapid. For example, Melbourne is growing at an average annual rate of 9.1%. From the perspective of the overall rental market environment in Australia, the overall occupancy rate of Australian houses is very high. The overall occupancy rate is about 98%. The very low vacancy rate also reflects that the demand for housing has been in short supply. Take Melbourne as an example. According to new data from the Domain Group, Melbourne housing rents have reached a record high, especially in second-tier urban areas within the prestigious schools. In the past year, Eaglemont is one of the areas where rents have risen the fastest, with a 30.4% increase.
Advantage 3 easy to use leverage, relatively low risk If the owner buys a futures company and invests in bank leverage, such as a loan or refinancing, and the loan is repaid on the day the house is delivered, there are two ways to calculate the interest rate: floating interest rate and fixed interest rate. At the same time, you can choose to repay the interest first and then the principal, or repay the principal and interest in the same way. Advantage 4: Freehold property rights and no inheritance tax For property rights, it is 70 years in China, and Australia has freehold property rights except Canberra. Perhaps this condition has attracted a large number of home buyers, but the advantages are not limited to this. Although it is freehold property rights, inheriting real estate is Not to pay? The answer is no, there is no inheritance tax in Australia, which means that you can leave it to your children unconditionally, so it is a once and for all sale. Compared with the confusing and confusing regulation of China's property market, Australia has the most stable real estate investment environment. From the perspective of the overall environment, first of all, Australia has the most superior natural conditions and welfare benefits. The clean air, sound social system and stable political system keep Australia away from disputes, and it has been voted by the world as one of the most suitable countries for human living.

Secondly, Australia's economy is very resilient. Even in the global economic crisis, Australia has not experienced an economic recession. It is one of the few countries in the world that has always maintained price stability and is free of inflationary pressure.

According to statistics from RESIDEX, Australia's property prices have averaged a growth cycle every 10 years in the past 30 years, which means that property prices will double every 7-8 years. And an average annual rental return of 5-7% can be easily supported by rent, and both housing prices and rents continue to increase income.

Australia has strong educational resources and scientific research standards. Excellent teachers have made a large number of Chinese families choose to study in Australia, so there are many overseas students. This established part of the demand in the rental market.

In addition, as a country of immigrants, Australia has many types of immigration. Compared with countries such as the United Kingdom and the United States, the immigration threshold is lower and life is more comfortable. Therefore, it has attracted a large number of overseas elites to settle here. According to data, the average number of new immigrants in Australia each year is about 150,000, which greatly exceeds the housing supply. It can be said that education and immigration have laid down the demand for the housing market, giving investment in Australia an extra layer of protection.

There are many advantages in real estate investment in Australia. One of the most important is that the rate of return is extremely high, and it is particularly stable, because now Australia has the most stable real estate investment market in the world, and most of the real estate transactions there are for investment or self-occupation. There is no speculation. In the past 40 years, Australian house prices have doubled in average ten years, with an average annual increase of about 6%.

Australian real estate prices have been rising at a relatively stable pace. Unlike the domestic real estate market, there has been almost no crazy rise in a short period of time. Therefore, it is a long-term behavior to invest in Australian real estate. If you want to get it through short-term real estate speculation, Benefits are impossible. In the future, real estate investment in Australia can not only gain returns through real estate appreciation, but also get rental returns. The annual rental yield of real estate in many cities can exceed 5%, which is also a high level that other countries cannot achieve.

When buying a house in Australia, the professional one-stop transaction system not only allows Chinese investors to avoid many difficulties, but also completes the purchase process quickly. After buying a house, they can also obtain comprehensive rental and management services. You can choose an Australian real estate agency with legal qualifications in China. From consulting on housing, viewing, closing, lawyer signing, loan, delivery, and renting are all one-stop services, and some have immigration and study abroad qualifications themselves. It is convenient for domestic customers to complete everything they want in one house, which can be said to be twice the result with half the effort.

The Australian housing market ranks first in the world for “highly transparent”. The prices of Australian developers' real estate, the prices of overseas investors and Australian residents buying real estate in Australia are all uniform standards.
Australia’s standard of living is one of the highest in the world, but its cost of living is much lower than many countries and regions including the United States, Britain, Germany, Japan, Hong Kong, Singapore and Canada.

The average value of buying a house in Australia has doubled every seven to ten years in the past 40 years. With such a steady development, there is a certain amount of appreciation every year. Compared with the instability of the domestic real estate market under the macroeconomic regulation and control, Australian real estate investment is a stable way.
In Australia, the government has strict supervision of professionals engaged in Australian real estate agency activities, and penalties for some of them who violate the law are very severe, up to seven years in prison. Therefore, if the property purchased by an Australian buyer is handed over to a local real estate agency for management, there is strict legal protection, which is very beneficial to protect the Australian buyer. Most states of the Australian government do not levy inheritance tax on real estate. In many other countries, inheritance tax can be as high as 40%. By default, the risk of providing credit for real estate by Australian banks is almost zero, so it is easier for investment properties to obtain bank credit support. Australian banks have stricter review conditions for customers than the United States or other countries of the same type. They have certain requirements on customers' property and income, so as to ensure the security of loans to the greatest extent. Many cities in Australia have been rated as the most suitable cities for human living. The economic capital Sydney has been rated as the world’s five best cities to live in for many years. It has a pleasant climate, a unique and comfortable living environment, and a high-quality social and cultural foundation. Construction. At the same time, the cultural capital Melbourne is also one of the most livable cities in the world.

The government has a long-term vision. The Australian government encourages real estate investment plans for more than one year. It is stipulated that the value-added tax from the sale of buildings for more than one year is reduced by half. If you buy a house or invest in Australia, if you hold it for one year, you will be levied a value-added tax of up to 49%, while holding it for more than one year is 25%. Therefore, buying a house in Australia is a long-term investment, not a speculation.

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The Reserve Bank of Australia announced on June 4 that it would lower the target interest rate, the cash rate, to 1.25%, a 25 basis point reduction from the historical low of 1.5% that year after three years. The four major banks responded immediately. Among them, the Federal Bank and NAB lowered interest rates by 25 basis points in accordance with the central bank's rate cuts, and passed all or most of the interest rate cuts to consumers who purchase houses with loans. Chinese media even defined the Reserve Bank of Australia's interest rate cut as "the beginning of the era of global interest rate cuts."

In short, the investment rent is more than the bank interest, and it really becomes an investment property that makes money to buy a house. May I ask who would save money instead of buying real estate?