Australian real estate investment risk notice

Many people will choose Australian real estate investment immigrants, so what are the risks of choosing real estate investment immigrants? This is a concern of many immigrants. Let's take a look at it with the overseas immigration network! The following is the relevant information I have compiled. Welcome to reading.

What are the risks of Australian real estate investment?

Risk 1. Auction investment is not suitable for overseas people.

High-rise apartment auction is suitable for local high-income people in investment countries, who can get government tax rebate through high depreciation of apartments; In America and Australia, it is called negative real estate investment; Overseas investors have no income before landing in Australia, and their children have no employment, so they cannot deduct corporate or personal income tax through apartment depreciation; And high depreciation itself means higher tax losses.

Risk secondary and secondary sales time is relatively long.

Different from villa categories, apartments occupy a relatively low proportion in the second-hand trading market and stay for a long time (apartment products only account for about 20% of the auction property according to the category of weekly market auction products); In particular, small-sized apartments are the most unsalable, such as one-bedroom apartments, one-bedroom apartments, apartments with no parking spaces below 50 square meters and so on; Why is it completely different from the imagination of our buyers and investors? The answer is: compared with the overseas mature real estate market that has experienced many ups and downs, the real estate worth investing in by China people is precisely the product that their locals can regard as "home"; Ask yourself: With reference to Australian families, can a middle-class family with an average of 4-5 people in western developed economies live in an apartment of 50 square meters without birth restrictions?

Risk 3. Apartment products are not the main category of mainstream self-occupation and rigid housing demand in Australia, New Zealand, the United States, Canada and other countries.

Therefore, the cash value and mortgage value of banks are relatively low; Especially the high-rise apartments in the city center are not the first residence of local people; Take Melbourne, Australia's second largest city with a population of 4.2 million as an example: there are only10.4 million Australian natives (holding Australian passports and permanent residency) living in the CBD, while most of the total 300,000 people living in the CBD are migrants, such as international students, visiting scholars, tourists, backpackers and "poor people" who can't afford cars to do odd jobs around the city center; China's urbanization has just begun, and Melbourne began in the 1980s. The downtown is just a business center, not a mainstream living community. If the vast majority of Australian natives don't live in the city center, who will we sell the high-rise apartments in the city center invested by China people in the future?

Risk 4. Bank valuation and loan risk are relatively high.

After a completed building is transformed into an existing house, the bank will not issue loans at the contract purchase price, but calculate the loans according to the market evaluation after the completion of the building. If the housing market is expected to decline in a few years, the bank's evaluation value of the property may be lower than the price when investors buy it, which makes it difficult for investors to raise funds. In addition, it is unknown whether overseas banks will provide mortgage loans to investors during this period, as well as the corresponding loan ratio and loan interest rate. Because the transaction of uncompleted residential flats or auction houses is 2-3 years later; Invisibly, the long-term delivery of futures index pushed back the loan approval risk of overseas investors. The longer the time, the greater the potential risk.

Risk V. Delivery risk

All possible risks in sales are collectively referred to as "settlement risks". These risks not only affect buyers, but also affect buyers, developers and intermediaries. Although the Australian Prudential Regulatory Authority (APRA) tried to cool down the rising real estate prices in Australia by tightening investment loans, it also increased the delivery risk of the Australian real estate market. This series of policies to tighten investment loans has reduced the growth momentum of the real estate market, but also increased the risk of economic recession.

How to avoid risks in Australian real estate investment

Throughout the history of Australian real estate, it is not difficult to find such a common phenomenon: after ten or twenty years, the gap between the appearance of the city and the housing prices of the whole region is getting wider and wider.

The main reason for this phenomenon is employment opportunities. There are often large commercial centers in areas with many employment opportunities, and a considerable number of high-paid white-collar workers are willing to choose to live nearby, thus generating a large demand for local housing market, especially high-end housing.

This will attract some high-end developers with unique vision to develop in the local area and build a number of high-end buildings with good quality and beautiful appearance. The development trend of the whole region is getting better and better, and rents and house prices are rising.

Population growth and housing supply are the most direct factors that determine the trend of housing prices. When the population growth is far greater than the housing supply, it is difficult for rents and house prices to rise.

On the contrary, if the housing supply in an area is relatively large and there is no indication that the local population will increase significantly, then we should be extra careful when investing. It is worth mentioning that if it is a large number of planned construction areas, its investment value is the largest and its investment advantage is the strongest.

First of all, ideas are the most important. We should correct our thoughts and opinions. We invest in the Australian market, not the domestic market, so please don't look at the Australian market through the glasses of the domestic market.

Second, identify professionals. There is expertise in the industry. We must go to the dentist to have our teeth extracted and our hair cut. We must go to the barber shop and invest in Australian real estate. We should look for experts in this field. Successful people have their own financial management teams, including elites from all walks of life, who can accurately judge which projects are conducive to investment and can get benefits.

Third, it needs comprehensive consideration. Housing selection criteria should consider factors such as region, median sales price, appreciation space, cost performance, rental return rate, vacancy rate and future transaction volume, rather than just looking at it.

Fourth, buy insurance. Insurance is very important. The major cities in Australia are all along the coast. Although there are few disastrous weather in Australia, we should take precautions. And Australia's insurance industry is perfect. A better way to deal with such risks is to buy insurance.

Fifth, find a good lawyer. Lawyer, don't underestimate the responsibility of a lawyer when buying a house. Every sum of money is paid into the lawyer's trust account when the customer buys a house, not directly to the developer. Only when each period is completed will the lawyer pay your money to the developer. If the developer abandons the house halfway, then he won't get you a penny.

Sixth, remember to make rounds. House inspection: within 7 days after the delivery of the house, the customer can inspect the house. If any quality problems can be raised, the developer will improve. If you don't have time to inspect the house, you can hire a professional house inspection agency to take you to inspect the house to ensure that your house is correct. Through the intervention of the above points, you can reduce the risk of overseas investment and make your investment truly "confident"

Comparison of real estate investment between China and Australia

1, term of property rights

China: In China, the property right of ordinary civil houses is the right to use for 70 years, excluding ownership (see the Land Management Law of China for details).

Australia: Australia has the economic basis of private property ownership, and the law stipulates that owners have permanent land ownership, not lease rights. "Permanent property right" means that the owner can enjoy the ownership of the land forever.

2. Provisions on down payment for faster houses and capital risks.

China: In China, it is generally necessary to pay 30% of the house price when signing the house purchase contract, and the down payment should be paid directly to the developer. Once the developer has problems, it is difficult to guarantee the buyer's funds.

Australia: When signing the contract, the owner in Australia only needs to pay 10% of the house price, and the down payment is entrusted to the trust company account of the third party through the lawyer, and the interest belongs to the buyer or the buyer and the developer. Once the developer has problems, the funds will be refunded by the trust company.

3. Housing loan

China: China real estate buyers began to repay the principal and interest immediately after signing the purchase contract. Buyers have great repayment pressure and tight cash flow pressure; Many times, property buyers have to pay interest to the bank in vain before they get their existing homes.

Australia: Australian buyers usually only need to pay a deposit of 10% after signing a house purchase contract. The repayment of existing homes will not start until after delivery. Within a fixed period (30 years of loan), only the interest will be repaid but not the principal, so the repayment pressure is relatively small, and investors can choose to repay only the interest (the tenant rents a house to repay the interest). In addition, property buyers can also apply to the bank for a hedging account. The owner can deposit the house payment into the hedging account, and the bank will transfer money from the hedging account regularly. And the owner can withdraw money from the hedge account at any time.

4. Legal guarantee

China: In China, you usually go to the real estate exchange to buy a house, and there is no professional lawyer involved. If investors don't know the details of the contract, things that fall into traps and disputes will often happen in the future.

Australia: In contrast, in Australia, both buyers and sellers must hire professional transfer agents or lawyers to handle related legal affairs. Through the checks of professionals, the interests of investors can be better protected and the investment risk can be reduced. Investors buy not only houses in Australia, but also peace of mind and peace of mind.

5. Tax incentives

China: The amount of tax refund through investment houses is very low.

Australia: Part of the income tax can be deducted through depreciation or other intangible and tangible expenses (tax deduction for purchasing Australian real estate).

6, buy a house discount

China: There is no discount for buying a house for the first time. The deed tax on luxury houses will be doubled, and the business tax will be levied in full for the sale of real estate within two years.

Australia: Australian local residents or permanent residents buy houses for the first time, and the government subsidizes 65,438+00,000 Australian dollars (if the house price is lower than 750,000 Australian dollars, they can apply), and 60% of the house purchase stamp duty and part of the loan stamp duty are exempted.

7. The algorithm of real estate area is different.

China: The area of the real estate includes the shared area of public parts such as stairs, but does not include the effective physical area in the real estate.

Australia: The internal area of Australian real estate is the actual area of real objects, and there is no pool area. Therefore, the house area in Australia is actually larger than the real estate area in China. In addition, Australian real estate only has the overall selling price, while China real estate is sold at the selling price per square meter.

8. Vacancy rate

China: 20 14 China housing vacancy rate report shows that the vacancy rate of urban housing market in China reaches 22.4%, while the vacancy rates in Shanghai and Beijing are 18.5% and 19.5% respectively. It may be higher now.

Australia: According to the statistics of Domain Group, an Australian real estate information website, in June 20 17, the rental vacancy rate of all major capital cities in Australia was below 3%, and the average vacancy rate of houses in Sydney was around 2%.

According to international practice, the vacancy rate between 5% and 10% is a reasonable range, indicating that the balance between supply and demand of commercial housing is conducive to the healthy development of the national economy; 10%-20% is a vacant danger zone, and certain measures need to be taken to ensure the normal development of the real estate market and the normal operation of the national economy; The vacancy rate of more than 20% belongs to the serious backlog area of commercial housing, and investors need to consider it carefully.