Optimal capital: why invest in Australian real estate?

Australia is listed as a South Pacific island country with an area of 7.692 million square kilometers. In terms of land area, it is the sixth largest country in the world and the only country in the world that monopolizes the mainland.

Australia has a mild climate and pleasant environment. The annual average temperature 15 to 26 degrees, and the coastline is 3752 1 km. The northeast coast is the most suitable place for human habitation in the world.

Australia is the fourth largest exporter of agricultural products and the largest exporter of various minerals in the world.

Australia is an immigrant country, pursuing multiculturalism, with a total population of 23 million, and the proportion of immigrants is as high as 20%.

Sydney, Melbourne and Brisbane are the top three cities in Australia, and they are all rated as the most livable cities by the United Nations.

There is a popular saying: "Play in America, see in Europe, eat in China and live in Australia".

As one of Australia's long-term pillar industries, real estate has a history of 100 years, and its market scale is very large and mature. During the 40 years from 1965 to 20 13, Australian housing prices showed a steady and rapid growth trend, with an average annual appreciation of 7% ~ 10%, doubling every 7 ~ 10 years, and the residential vacancy rate remained at.

Australian real estate investment is full of vigor and vitality, which has attracted a large number of Asian investors to enter the local real estate market in recent years.

The Australian government has issued a series of preferential policies to stimulate and encourage the long-term stable development of the real estate market, and as overseas investors, they can enjoy these policies just like local investors.

1. Australian property ownership

-Australian law stipulates that owners have permanent ownership, which has obvious advantages over 70-year ownership of domestic residential real estate and 40-year ownership of commercial real estate.

2. Low cost of ownership

At the same time, Australia is one of the few countries in the world that does not levy inheritance tax, and there is no property tax, which doubles the investment value of Australian real estate. When buying a house, there is only one-time tax and stamp duty.

3. Australia's financial policy is superior

The Australian government encourages overseas investment, and overseas investors can buy unlimited new houses and uncompleted residential flats.

Investors only need to invest 20% to 30% of the house price, and overseas buyers can enjoy a loan ratio as high as 70% to 80% with proof of income and bank deposit, and the loan period can reach 30 years, which has obvious advantages compared with domestic loan policies. By using bank funds, investors can get a very considerable return on investment.

-Australian loans can only repay interest but not principal, which greatly reduces the cash flow pressure of investors.

-Diversification of financial products. Tools such as hedging accounts, lending, increasing loans and online banking can provide investors with the most convenient off-site cash flow management and maximize the use of bank loans.

4. The return on investment is stable and the pressure on cash flow is small.

-The rental return of residential properties in Australia is extremely stable, generally starting from 5%, and the vacancy rate is extremely low, generally not higher than 2%, which means that it is vacant for no more than two weeks a year.

-Investment properties are generally managed by professional licensed property management agencies. Under the sound legal supervision of China, investors are guaranteed to have no worries.

5. The legal system is perfect and the investment risk is small (buying a house requires the intervention of lawyers and developers need their own funds to develop).

-Australia's real estate market is strictly regulated by the government and the Fair Trade Commission. When buying a house, you need to hire a licensed lawyer to protect your property and rights. Therefore, real estate salesmen and rental property managers must hold professional qualification certificates and pass the annual inspection.

-Real estate companies need to pass the annual audit of the Fair Trade Commission so that the funds can be used for special purposes. The deposit for buying a house or renting a house needs to be deposited in a specific trust account, which is strictly supervised by the Fair Trade Commission.

6. Raise funds again

-Note: Re-loan refers to the use of the value-added part of the house price without selling the house after the house has appreciated.

Example: 20 10 bought a property with a value of 1 10,000 Australian dollars, and the value increased to10.5 million Australian dollars after 3 to 5 years. 500,000 Australian dollars can take 90% of the value-added house price from the bank evaluation, and 450,000 Australian dollars can be freely used or purchased by down payment again.

7. The necessity of buying real estate in Australia

One. Global assets are rationally allocated, and eggs cannot be placed in one basket.

Two. The Australian real estate market is healthy and stable, without government intervention, and the risk coefficient of investors' funds is low.

Three. Excellent financial policy, can operate multiple real estate investments with the least amount of funds.