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

Australian real estate VS China real estate.

In recent years, overseas investment has become a hot topic. Australia has many advantages in becoming the most popular destination country for overseas investment and house purchase.

According to public information, people in Australia, the United States, Canada and other western countries have permanent property rights, which means they can live stably for generations. Therefore, China people prefer overseas home ownership.

According to the data of Australian Overseas Investment Review Board (FIRB), the value of Australian real estate has increased by 7% ~ 10% in the past 40 years. From 20 14 to 20 15, the total investment of Chinese people in Australia is about 1 188 billion RMB. China has surpassed the United States to become the largest source of foreign investment in Australian real estate.

Why are Australian properties so attractive to China investors?

0 1

Property ownership

China: Property right for 70 years.

Australia: permanent property rights

02

Time of property right acquisition

China: After the existing house is delivered for a period of time.

Australia: When the existing house is delivered,

03

advance payment

China: Pay 30% when signing the contract.

Australia: Pay 10% when signing the contract.

04

Forward loan

China: China repays the loan immediately after signing the contract, with interest and complicated loan procedures.

Australia: You don't need to repay the loan immediately after signing the contract. You just need to return the existing house after handing over the house. The loan procedure is simple.

05

Repayment method

China: At the same time, repayment of principal and interest is under great pressure, and the cash flow pressure of buyers is tight.

Australia: It only pays interest but not principal within a certain period of time, so there is little pressure to repay the loan.

06

Property delivery and capital risk

China: Or there are uncompleted residential flats, and the buyers suffer, and there is no well-decorated house.

Australia: down payment custody, the buyer is foolproof, there is interest income, and there is no unfinished building.

07

Market and legal situation

China: In the improvement stage, there are many loopholes.

Australia: mature laws and regulations to protect buyers' rights and interests.

08

legal protection

China: The information between developers and owners is asymmetric, and the laws are imperfect, so it is difficult to protect the interests of owners.

Australia: The legal system is perfect, all contracts are handled by professional lawyers, and the vital interests of the owners are effectively safeguarded.

09

reloan

China: It is difficult to obtain bank approval, and it is impossible or difficult to cash in the appreciation of houses.

Australia: Increase the loan at any time according to the current market price, and do not sell the house to recover the appreciation for reinvestment in the next house.

10

Developer's credit system

China: The good is not perfect, and the developer information is not perfect.

Australia: Perfect and mature, developers have high integrity, and there is almost no delivery risk in buying auction houses and uncompleted residential flats in Australia.

1 1

About property management

China: The rapid depreciation of buildings and poor property management cannot fully protect the rights and interests of owners.

Australia: Humanization, high efficiency, less building depreciation, reducing the worries of owners.

12

Freedom of building sale and inheritance tax system

China: The property right conversion period is long and restricted, and the inheritance tax is high.

Australia: Private property rights are bought and sold, regardless of existing houses and faster houses, and there is no inheritance tax.

13

Real estate rental

China: Difficult, poor management and high vacancy rate.

Australia: Don't worry about renting, the vacancy rate is low and the property management is perfect.

14

tax preference

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 relief for buying Australian real estate)

15

Purchase 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: First-time home buyers who are local or permanent residents in Australia will receive government subsidies and be exempted from stamp duty on some houses and loans.

It can be seen that compared with China, the Australian real estate market is more mature and standardized, and the credit system and lease management system are relatively sound and perfect. Australian real estate is a permanent property right, with no inheritance tax, low investment threshold and low repayment pressure. There is little risk in uncompleted residential flats, which can be rented out immediately after delivery, and can also enjoy negative tax deduction. High rental return rate and low vacancy rate, suitable for medium and long-term investment. Australia wins completely!

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