What's the difference between Australian real estate and China real estate?

There are huge social and economic differences between China and Australia, which also brings many differences in the real estate market between China and Australia. Understanding these differences is the knowledge base for our real estate investment in Australia. First of all, the purchase of Australian real estate is not limited to overseas people, only auction houses can be bought, but second-hand houses cannot be bought, because second-hand houses can only be bought by people who have held Australian visas for more than one year, and residents without permanent residency are limited to one set.

One of the differences: the ownership period of property rights

China: Property right for 70 years.

Australia: permanent property rights

Australia has the economic foundation of private ownership of property, and the law stipulates that owners have permanent land ownership, not lease right (domestic right to use means the separation of ownership and right to use, and then the right to use is equivalent to lease right). In essence, the word "permanent property right" means that you can enjoy the ownership of land forever. Unless the land you own is military land or cultural relics planned by the government, the period of ownership may be limited, but this situation is usually explained when purchasing land.

If it is a leasehold, you can only own the land for a certain period of time. In China, the current term is 70 years. Recently, there was a heated discussion about the right to use in China. It is estimated that the right to use for 70 years can be renewed, but a certain fee has to be paid. Therefore, in real estate appraisal, the value of real estate will decrease after a certain number of years.

Property with permanent property rights will not have this problem. Therefore, permanent property rights are superior to investment and can preserve and increase value for a long time.

Difference 2: Value-added potential

The rapid development of China's economy has driven the rapid growth of the real estate market. Countless people live a well-off life by relying on real estate or simply reselling houses. Listening to friends say that the most exaggerated increase in Shanghai's housing prices has doubled in three months, which can only make people regret not catching up. Who let the person who bought the property first make money later?

In Australia, however, the trend of house prices is quite stable, rising by 7%- 10% every year, and doubling in about 7- 10 years. Especially since 1990s, under the background of global economic easing, the growth has been particularly rapid. This is mainly caused by white culture, and foreigners prefer renting to buying. Nearly 30% of Australian residents live in rented houses. However, in recent decades, a steady stream of new immigrants has brought a lot of housing demand to Australia, and also brought the concept of buying a house to settle down. The annual population growth of 2. 1% has greatly stimulated domestic demand and stimulated the economy. Among these immigrants, China people contributed the most.

Although the price increase in Australia is not as good as that in China, it is also the performance of a mature market. It is precisely because of the prevalence of rental culture that Australia's real estate industry is healthier and less risky than other countries.

The third difference: vacancy rate and rate of return

vacancy rate

Vacancy rate refers to the proportion of vacant housing area to the total housing area at a certain moment. It is one of the standards to measure the health of a country's real estate industry. According to international practice, the vacancy rate of commercial housing is 5%- 10% as a reasonable area, and the balance between supply and demand of commercial housing is conducive to the healthy development of the national economy; The vacancy rate is between 10% and 20%, so some 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. The vacancy rate above 20% is a serious backlog of commercial housing.

Here are several sets of data references:

20 14 At the end of February, the vacant area of commercial housing in Shanghai increased from 7,354,600 square meters at the beginning of 201217,500 square meters, and the vacant area nearly doubled, including 5,540,700 square meters of commercial housing. From the perspective of vacant years, the area of commercial housing vacant for less than one year is 6,525,500 square meters, accounting for 53.9% of the total vacant area; There are 3,334,900 square meters of commercial houses that have been vacant for less than one year, accounting for 60.2% of the vacant area of all commercial houses.

According to the data released by the Population Management Corps of Beijing Public Security Bureau, up to now, Beijing has basically built a database of the city's housing standard addresses. It is reported that the number of rooms collected and entered in this database is13,205,000, of which 3812,000 are vacant. Based on this calculation, the proportion of vacant houses in Beijing is as high as 28.9%.

Vacancy rate 10%-20% is vacant danger zone, and Shanghai is 60.2%. Beijing does not dare to calculate by area at all, but by the number of vacant houses/total houses. According to official statistics, it will take at least 42 years for vacant houses in China to be digested. In other words, according to the normal economic system, within 42 years, even if house prices do not fall, there is no reason to continue to rise. Take Sydney, Australia's largest city, as an example. What is the vacancy rate? 1.6%-1.8% floating.

As mentioned above, 30% of Australians rent a house. Therefore, buying a house in Australia will not worry about renting out at all. Because there are only one or two unoccupied houses in 100, it may still be a distant case.

For international students, most of them have rented a house. It is not uncommon for dozens of people to queue up to grab a house. There are more people and fewer houses, and the supply is less than the demand. This is the real situation of Australian towns.

mercantile rate of return

In short, the rental rate of return is the annual rent divided by the house price. According to the survey, at present, in four first-tier cities such as Beijing, Shanghai, Guangzhou and Shenzhen, the average return on investment of ordinary houses is less than 3.5%. Among them, the return on investment in Beijing is even lower, except for the northern region, which is below 2.5% in most other regions. Beijing is not an orphan, and the overall rental return rate in Shanghai is only 2%-3%.

In sharp contrast, it is the rental return rate of Australian real estate. The rental return rate of Sydney real estate remains at around 5.3%. Due to the explosive population expansion in Brisben, the rate of return can reach 6%-6.5%. Melbourne accounts for about 7% of the urban area. If Gladstone, Townsville and other mining areas or military regions have many people, few houses and no tall buildings, the rental return rate will be unimaginable 1 1%- 13%!

The fourth difference: the loan is difficult.

Loan difficulties

In Australia, it is much less difficult for real estate investors to apply for loans from banks than in China. Even international students can apply for loans. After the professional guidance of brokers, you can generally apply for 80% loans. You don't need extra collateral. The house itself is your collateral. This shows that the banking industry has enough confidence in the real estate market of Australian houses! Imagine that if your repayment ability goes wrong or you go bankrupt, the bank just needs to take back the property and bid at the current price. Banks dare to do this, but they can only say that the market price after recycling is definitely higher than the price paid when lending. This is a profitable business! You know, in Sydney, on average, ten properties are repossessed by banks every week and then auctioned ... the argument that the real estate bubble is self-defeating.

In addition, recent economic indicators and data show that there are very few real estate bubbles in Australia. Australia is the only developed country that still maintains the AAA sovereign ratings of S&P, Fitch and Moody's. In this era of increasing credit risk in this country, Australia's budget deficit in fiscal year 20114 only accounts for about 3% of GDP. Compared with the yen assets known as a safe haven (201-14 fiscal year budget deficit accounts for 195% of GDP), the Australian dollar has even had a partial hedging function. Even the once-in-a-decade economic crisis has not had a visible impact on Australia's real estate market, because the real estate market has played a role in balancing Australia's economic development. Whenever there are unstable expectations for the world economy, the Australian government will take a series of measures to encourage the real estate market and stimulate domestic demand. These policies include interest rate cuts and policy subsidies.

Loan down payment

Housing loan plays the role of financial leverage in investment, and obtains greater investment income with less investment. In Australia, where rent equals loan interest, the lower the down payment, the better. The down payment for buying Australian real estate is only 10%. On the other hand, in 2005, the State Council ordered that the down payment for individual housing loans should be increased to 30%, and the down payment for second home loans should be no less than 50%. If the second suite is used for investment and rental, it has lost its investment value in theory. Because "it is irrational and incorrect to simply expect housing appreciation to gain income".

At present, the parents of overseas students who know about the Australian housing market have begun to play the abacus of "supporting their studies with housing". Indeed, take the median house price of 600,000 two-bedroom houses in Melbourne this year as an example. The down payment for buying an uncompleted residential building is only 5%-65,438+00%, that is, 30,000-60,000 Australian dollars, which is less than the tuition and living expenses of an international student for one year. Two years later, the property was completed. According to the annual growth rate of 7%, the number of houses has increased to 684,000. Together with the government subsidy of 654.38+0,000 Australian dollars, the profit is about two years' tuition.

If the house is used for self-occupation in the future, you can pay a loan similar to rent and you will have a house. If the house is used to rent out the loan and sold in a year when the house price is high, you can get a greater capital gain. If you rent out the owner of this house and live in a small room, then you will increase the rent for the tenant every year (the loan will not increase with the house price), which will not only save your rent, but also gain capital gains when you sell the house. Of course, in such a professional country, we must find professional investment consultants to study the development trend of the project, professional brokers to help achieve loans, professional lawyers to safeguard the greatest rights and interests, and professional accountants to help avoid taxes.

Pay interest only

Banks in Australia allow buyers to repay only the loan interest, not the principal! Why can I only pay interest? According to the previous property right introduction, the right to use the house in China is 70 years, so of course, we must pay off the money within the term of use of the house. And Australian houses are private property, indefinitely, and you can return them if you want!

Why only pay interest? First, since buying real estate is an investment, it is our pursuit to maximize income and minimize risk. Investors can be divided into risk preference type and risk aversion type, and their confidence in investment projects is different. If you don't have confidence, invest less and pocket the extra money. If you are confident, it is better to use the buyout money to buy more properties in other areas, which can maximize the benefits and spread the risks. Second, only paying interest can also maximize the annual book loss and refund as much as possible. On the contrary, what if the rental income exceeds depreciation after paying off? Not only can't you get a tax refund, but you also have to pay taxes because of the profits you invested!

Re-finance ...

When the house price rises, for example, 600,000 houses rise to 700,000, then the increase of 6.5438+10,000 can be used to apply for refinancing from the bank. Take this "invisible" 654.38+ million as the down payment of the second house and buy the second house "for free". By analogy, you can apply to the bank for renewal of insurance every few years, and you can easily embark on the right path of investment and financial management. This is the western version of the story that hens lay eggs and eggs become hens. In developed countries, the probability of getting rich overnight is very low, and great wealth is often accumulated slowly through everyone's efforts. With the correct investment concept, everyone can live a good life.