Real estate investors who "covet" and want to bet on cheap overseas homes could one day wake up, a real estate investment group has warned.
Australian interest in overseas homes is so high that even in some of the world's most developed countries house prices are far from matched by Australia's high home-buying costs.
At least 1/2 of Australian buyers are believed to be considering overseas investments, according to WorldFirst, an international transfer group.
But housing experts warn that overseas investment may be blown up, but not in line with reality.
Riskwiseproperty.com.au 's CEO Toronto. Pelleg (Doron Peleg) said Australia's strict regulatory environment has made overseas investment "a dangerous act".
Australians who want to buy homes abroad tend to be at a disadvantage because they don't know the local property market, he said. "only locals know if a region is really popular, whether there is a high demand, and vice versa," Pelger said. And if you buy a property here, or at least you should know its fair market value. You're blind overseas. You don't know the bank, and you don't know the valuer. "
Research from the Global Real Estate Price Guide shows that few countries have comparable home prices with Australia, and Australians also have the highest income in the world, giving them considerable purchasing power when entering overseas markets.
The average home price in New Zealand, for example, is A $3438 per square metre, well below Australia's average A $10711 per square metre.
In Indonesia, prices are A $2889 per square meter, while Thai buyers pay A $3952 per square metre. Even in parts of Europe, Australians earn much more than they do-Spanish house prices are usually just A $5200 a square metre.
'it 's important for investors to be familiar with the laws and regulations of the investment countries, such as what legal procedures are in place when tenants don't pay rent, 'Mr. Pelger said.
In some cases, developers own property management companies, which means they are not completely independent.
'they usually provide a lease guarantee for a certain period of time, so you believe that the property will produce a good rent return, so it has a higher market value, but the person who pays the rent guarantee is the investor, 'Mr. Pelleg added.
"in addition, in an unknown market, you don't know what the commission is. It could be 10% or more. "
If you insist on overseas speculation, Australians had better avoid new homes.
If you have to buy a house overseas, you should at least stick to it because the risk is higher, Mr. Pelger said.
