I talk about Australian real estate. Why not buy it in China?

1. Let’s first talk about the difference between buying a house in Australia and buying a house in China

1. The concepts of property rights are different.

Definition from Baidu Encyclopedia: Property rights include the ownership, possession, control, use, income and disposal rights of property.

The following article, house property rights refers to the property owner’s ownership of the house and the right to use the land occupied by the house. As real estate, houses and land are an inseparable whole. When a house is transferred or other property rights change occurs, the house and land must be integrated together. It is impossible to separate the house from the land for disposal.

Well, 70-year use rights cannot give ownership, as everyone knows... (See the Land Management Law---the state can also expropriate land use rights that have not expired) but this "inevitable" use It’s too cheating! Houses and land are indeed handled separately in Australia. When you sign a contract when buying a house, you sign a land and house package contract. You sign a land transfer contract first, and then sign a house sales contract with the developer. Of course, if you are good enough and decisively buy the land first, then find a designer and builder yourself, apply to the government, and wait for a year and a half to apply, you can own the house of your dreams. If you buy an apartment, you also have land ownership, called joint land, which you share with others. It saves you a lot of trouble and the annual land tax when dealing with it.

Speaking of which Here, someone must stand up and say, "This is all nonsense! The national conditions are different. Our country is a great socialist country. This is all to prepare for the future of communism! Yours is evil capitalism!" Indeed In this way, capitalism is all private ownership and there is no comparison. But what I say is not nonsense. The issue of property rights determines the different bank loan mechanisms and repayment strategies when buying a house. This will be discussed later.

2. Different value-added potentials

The rapid development of my country's economy has driven the rapid growth of the real estate market. There are countless people who have become well-off and rich by relying on real estate or simply flipping houses. I heard from a friend that the housing prices in Shanghai doubled in three months when the growth was at its most exaggerated, but I don’t know if it’s true or not. I only regret that I didn't catch up in the first place. Who let the person who buys the real estate first earn the money of the person who comes after?

In Australia, the trend of house prices is quite stable. It doubles in about seven to ten years. 7-10 years? Sound familiar? I have heard countless people tell me this. Whether you believe it or not, I still doubt it. Adhering to the principle of questioning everything, I found this data in ASB, the Australian Bureau of Statistics.

This is mainly caused by white culture. Japanese people prefer renting a house to buying a house. As shown in the picture, nearly 30% of Australian residents live in rented houses. If no one speculates on real estate, how can house prices rise? The year-by-year increase in housing prices in Australia in recent decades is also closely related to the number of immigrants. The annual population growth of 2.1 has greatly boosted domestic demand and stimulated the economy. Of course, among these immigrants, especially the Chinese compatriots have made the greatest contribution (applause).

Everything has two sides. Does it mean that if the growth rate is small, it has no investment value? Of course not! Precisely because of the prevalence of rental culture, Australia's real estate industry is healthier than other countries, with relatively less risks.

3. Risk differences

3.1 Let’s talk about the vacancy rate first. The vacancy rate refers to the ratio of vacant housing area to the total housing area at a certain time. It is one of the standards to measure the health of a country's real estate industry. According to international common practice, the vacancy rate of commercial housing between 5 and 10 is a reasonable area, and the supply and demand of commercial housing are balanced, which is conducive to the healthy development of the national economy; the vacancy rate between 10 and 20 is a dangerous area for vacancy, and certain measures must be taken. Measures should be taken to increase the sales of commercial housing to ensure the normal development of the real estate market and the normal operation of the national economy; a vacancy rate above 20 indicates a serious backlog of commercial housing.

The following are several sets of data for reference:

At the end of February 2009, the vacant area of ??commercial housing in Shanghai expanded from 7.3546 million square meters in early 2008 to 12.1175 million square meters. The vacant area expanded by nearly Doubled, of which 5.5407 million square meters of commercial residential buildings were vacant. In terms of years of vacancy, the area of ??commercial housing vacant for less than one year is 6.5255 million square meters, accounting for 53.9% of the total vacant area; the commercial residential housing vacant for less than one year is 3.3349 million square meters, accounting for 60.2% of the total vacant commercial residential area.

Data released by the Population Management Corps of the Beijing Municipal Public Security Bureau shows that as of now, Beijing has basically completed a database of standard housing addresses in the city. It is reported that the number of rooms collected and entered in the database is 13.205 million, of which 3.812 million are vacant. Based on this calculation, the proportion of vacant houses in Beijing is as high as 28.9.

Do you understand? A vacancy rate of 10-20 is a vacancy danger zone. In Shanghai, it is 60.2. In Beijing, we don't dare to calculate it by area at all. We calculate it by the number of vacant rooms/total rooms. According to official statistics, it will take at least 42 years for the country’s vacant houses to be absorbed. In other words, according to the normal economic system, at least for 42 years, let alone falling, at least there is no reason to rise again.

For the sake of fairness, taking Sydney, Australia’s largest city, as an example, what is the vacancy rate? 1.6~1.8 floating.

As mentioned above, 30% of the Australian population are renters. So, if you buy a house in Australia, at least you won’t have to worry about not being able to rent it out. Only one or two houses out of a hundred are unoccupied, perhaps in the suburbs.

During our study abroad days, most of us have had the experience of taking over a house. It is not uncommon for dozens of people to line up to grab a house during the inspection. In order to get a house, I tried all the tricks I could, including adding money, paying half a year's rent at a time, falsely reporting my salary, and chasing after the agent...

There are so many people but so little housing. Less than Qiu, this is the general situation of various cities and towns in Australia. "228,000-home shortfall for sydney" Sydney still lacks 228,000 housing units this year to meet housing needs. It's strange that the vacancy rate is high.

3.2 ROI (return on investment)

To put it simply, it is the annual rent divided by the house price. The survey shows that currently in the four first-tier cities including Beijing, Shanghai, Guangzhou, and Shenzhen, the average return on investment for ordinary residential buildings is less than 3.5. Among them, the return on investment in Beijing is even lower. Except for the northern region, which stands out, most other regions have Below 2.5. Beijing is not alone. The overall rental return rate in Shanghai is only 2~3./view/279.htm

In sharp contrast, it is the rental return rate of Australian real estate. Sydney is slightly below average, at around 5.3. Brisbane's house prices have fallen due to the recent boom, but the rent will not drop, and the return rate can reach 6~6.5. Melbourne city is around 7, but the value-added rate is slow; although areas such as south bank are only 5, the value-added rate is more than 5 10 per year. If there are mining areas or military areas like Gladston and Townsville, with many people and few houses but no high-rise buildings, the rental return rate will be unimaginable 11~13! There is also an annual NRAS government subsidy of $9971! Everything stems from supply and demand.

4. Government’s position

4.1 The above increase does not include government subsidies and tax rebate income, and the ROI is already 5.2, which is basically the same as this year’s housing loan interest rate (5.5~6.5). If you are still a normal Chinese, you should start thinking about it. Only fools spend their whole lives renting a house! Using the same amount of money to pay for someone else's house is not the same as raising someone else's child... When his son is raised, he will still call others daddy! Hey, don't tell me, the Japanese have such a spirit of fraternity. What people admire is great love, freedom, and early consumption. This is inseparable from the nature of Western nomads.

I once met an old lady in her 170s, who received a government pension and went out to work every week just to live alone in Manly Beach. This is what she pictured!

The government has said, "Please, buy a house. I will give you money, a large sum at one time, and a refund every year! If you buy a house, it will be good for you and me. I This can improve your data, reduce your pension burden, and you can make a fortune, not counting your inheritance tax! Buy it, buy it, or you will lose all the black hair. Let’s see how you want to be black when your landlords are Chinese in the future. How can you be so evil!"

This is not an exaggeration. The above statements are well-founded. Starting from October 1st this year, first-time homebuyers in New South Wales will enjoy a government subsidy of $15,000 (first home grant) and stamp duty exemptions (full exemption for those below 550,000, and partial exemption for 550,000 to 650,000). . The prerequisite is to purchase a new home or off-the-plan property below $650,000 (median house price) and be the owner-occupier. A one-time subsidy of $5,000 is available for investment purposes.

For Queensland, first-time homebuyers can apply for a government subsidy of AUD 15,000 from September 12, 2012, but the total house price must not exceed $750,000, and it must be a new house or off-the-plan property. If the total house price is less than $400,000, stamp duty is waived.

In Victoria, from July 1, 2010 to June 30, 2012, those who purchase a new home for the first time as their own home can apply for a $13,000 subsidy. But the house value does not exceed $600,000.

4.2 Australia is the only country that implements Negative gearing tax return. Many people call it negative gearing. As the name suggests, a negative makes a positive. Not only will no tax be deducted, but tax compensation will also be provided. Of course, there is also a prerequisite - investment purpose. The vernacular is to rent it out! In order to encourage real estate investment, the ATO tax bureau regards the rental of personal houses as a small business that generates assessable income, and this kind of small business usually "loses money"! Didn’t I say that the ROI is very high? Why did you lose money? So it is encouraging... Now it is the turn of "House Depreciation" to make its debut! As we all know, accounting (I finally mentioned my old profession, shame) has a principle called accrual accounting, which is called "accrual accounting" in Chinese. "It refers to the actual acquisition of the right to receive cash or the responsibility to pay cash. The current period's income and expenses, as well as claims and debts, are recognized as signs. That is, income is recognized based on the occurrence of cash receipts and future cash receipts - claims; expenses are recognized based on the occurrence of cash disbursements and future cash disbursements - debts. Revenue and expenses are not recognized based on cash receipts and payments. "Are you confused? If you take it seriously, you will lose. Vernacular: If you include depreciation when doing the accounting, you may seem to be losing money, but in fact you are not losing money, because no one cares about your depreciation when selling the house. Do you understand?

For example, your salary this year is 80,000, and when it is paid out, you will only have 62,453 left because your boss helped you pay taxes to the government (you can’t blame him).

The algorithm is very simple. Give it to the Australian government $17547=(80000-37001)*32.5-(37000-18201)*19

Suppose last year, you happened to buy 600,000 For a new house, the depreciation in the first year is around 18,000.

In the small business of renting a house, your other tangible expenses include council rate, water rate, strata, interest..., and the income is rent. Based on the most conservative calculation, ROI=5.2. Income-expenditure=$600*52 (one year Rent) -5.5*$48,0000 (annual interest on loan 80) -500 (water rate) -1200 (strata) -600 (council rate) ≈ 0 Then in accounting terms, the total loss of your house is equal to the depreciation amount $18,000. Now it’s time to recalculate this year’s tax liability. Due to investment "losses", your taxable income this year has become $62,000 (80,000-18,000), and you should actually pay taxes to the government

$11,697=(62000-37001)*32.5-( 37000-18201)*19. But what should I do if I have already handed in $17547? If you want to come back, just submit an application to the ATO. Not counting the 7-10 increase in house prices, you will get back an extra $5850 because of the house this year.

Since the higher the income, the higher the tax rate, from the above calculation It can be seen that the same real estate investment has a better tax avoidance effect for high-income people. For example, if the annual salary reaches $20,0000, the annual tax refund on this property will be $8,100. My wife works in an accounting firm and often helps companies or individuals with tax refunds. She has found that high-income earners such as doctors and lawyers will inevitably have a tax refund. There are several sets of real estate that can be used as tax deductions. Therefore, the annual tax paid by high-income earners is usually lower than that of low-wage earners, and they may not even pay any tax at all. This also reflects the so-called law in capitalist society that the poor are getting poorer and the rich are getting richer.

4.3 The Australian government really hopes that "its own people" will buy a house, but in this country that pursues so-called "democracy and fairness", it cannot treat people without PR differently, so the birth of FIRB ( Foreign Investment Review Board) is used to limit the quantity that non-residents can purchase for each Project. Generally, it cannot exceed 50, and the application must be submitted to FIRB through a lawyer. If you are buying a new house or an off-plan house, the government will issue 100 batches of FIRB, so you can buy with confidence. Even if your visa expires and you return to your country in the future, you can keep the house you purchased at your own disposal (vacant, rent, or resell). If you are buying a second-hand house, applying for FIRB approval may not necessarily be approved, so it is recommended to pay a deposit and sign the contract first, and then apply for FIRB before signing (even if you sign, you must state the subject to FIRB in the contract). If FIRB disapproves, you can terminate the contract and lose up to 1,000 to 2,000 yuan in deposit. Some people sign the contract directly without experience. If FIRB does not approve it, the buyer will lose 10% of the house price as liquidated damages.