The difference between Australian Real Estate and Chinese Real Estate
I: different tenure periods
China: only 70 years of property rights
Australia: most properties are permanent and can be handed down from generation to generation without fear of expiry or forced demolition.
2: different renovations of new houses
China: most of the new houses are rough houses, not with decoration, their own decoration laborious, decoration also spend a large amount of money, and China's decoration materials formaldehyde hidden danger, and open windows for a few months.
Australia: all new houses are decorated, kitchen ovens, range smoke machine, dishwasher, air conditioning, carpet (floor) are generally standard configuration, environmental standards are high requirements, rooms can be directly checked in, saving labor.
III: the down payment amount and capital risk of uncompleted buildings are different.
China: general purchase contracts need to pay 30%, the money is paid to developers, once the developers go bankrupt, rotten buildings, buyers' funds are very difficult to guarantee.
Australia: the average contract payment is 10%, even 5% before the financial crisis, with much less pressure than in China. And the money is held in a third-party trust account by both lawyers, and the interest is owned by the buyer or equally divided between the buyer and the developer. Once the developer goes bankrupt, the money will be returned by the trust company. There is no risk to the money, but it is the equivalent of depositing the bank. In the rise in real estate, in the purchase of Australian futures can use the least capital leverage ahead of time to lock in the next two years after the appreciation of the real estate.
Four: housing loan products are different
China: Chinese home purchase is immediately after signing a housing contract with interest repayment, the buyer has not received the current house, for a long time to pay the bank interest.
Australia: Australian home purchase is after the signing of a housing contract, usually only a 10% deposit in advance, before the delivery of the bank loan-related matters, the first month after getting the key to the house to pay back. And 10 percent of the interest on deposits usually goes to buyers, which means that buyers have little cost until they buy Australian homes and new homes are delivered. And Australia's bank loan products can pay interest, not principal, for five years, greatly reducing the pressure on underfunded young people to repay their loans.
5: different degrees of freedom of real estate cash-out
China: government policy constraints and regulation are too many, property rights conversion period is long. First of all, there are a lot of houses in the specified years can not be sold in the market, such as welfare housing, comfortable housing, etc.; secondly, if the house value-added, in the premise of not selling the house, can not freely cash out the value-added part of the real estate.
Australia: free market economy, Australian property can be freely traded in the market, it is easy to sell. If the real estate value-added, under the premise of not selling the real estate, we can use the flexibility of the bank's loan products to cash out the real estate value-added part for reinvestment, and activate the utilization rate of the capital. There are two ways to cash value-added capital without selling the house, one is to do Top up, without changing the loan product, the other is to refinance the (Refinance), the essence of which is the same. Let the Sydney tabloid editor give an example of how cash is done, assuming I bought a property for A $ eight hundred thousand two years ago, when I lent 80% to the bank, or six hundred and forty thousand, and two years later, the real estate appreciated to A $1 million. I'm relending to the bank at the current value of the appreciated property, or 80%, or 800000, from the bank, so in fact I can get 800000-640000 = 160000 Australian dollars in cash from the bank cover. This one hundred and sixty thousand Australian dollar cash can be at my own disposal without selling the house, that is, two hundred thousand of the real estate appreciation. I made use of Australia's flexible bank loan products to easily cash out two hundred thousand X 80% = one hundred and sixty thousand. Isn't it much easier to buy a house in Australia than it is in China to buy a house?
Six: the standard degree of property rental is different.
China: housing rental is usually done by the owners themselves, rent collection, dealing with tenants and so on a bunch of trivial things.
Australia: housing rentals are generally handed over to professional housing agents, who find suitable tenants, sign legally effective rental contracts with tenants, collect rents, and so on, and so on. Rent will be transferred regularly to the owner's bank account, the whole process owners do not need to appear, save effort. Of course, owners need to pay intermediary management fees, property management fees generally range from 4% to 6% of the rent.
VII: preferential policies for investment in real estate
China: first-time home purchase is not preferential, luxury homes double deed tax, property sales within two years full collection of business tax.
Australia: the Australian government has been offering preferential policies to first-time home buyers in Australia. State governments have different preferential policies. In Sydney, for example, on July 1, 2013, the government waived stamp duty and offered a $15, 000 cash subsidy to first-time buyers of newly built homes with a price of no more than A $ seven hundred and fifty thousand. End date 2016. For investment in real estate, the government can provide tax concessions withholding tax.
Eight: different algorithms of real estate area
China: the real estate area includes the common share area of the public area such as staircase, not the effective physical area of the house.
Australia: the interior area of Australian property is the physical real area, there is no public area. So the size of the house in Australia is actually larger than that in China. In addition, Australian property only the overall price, Chinese property is sold per square meter to sell.
Nine: the quality of real estate is different
China: the quality of real estate is uneven, most of them are of general quality. There are a lot of buildings that have only been built for 10 years. So in China, it is very difficult to live in a house for a lifetime, to keep saving money for a new house, which needs just, to contribute to GDP.
Australia: there are a lot of old buildings built with red bricks in Australia. They look a little old, but it's hard to imagine that many of these old houses have a century-old history and there's no big problem with their quality.
Ten: different rates of return on rent:
In Australia, in general, the weekly rent for Australian property is usually 1/1000 of the property price. For example: an A $ seven hundred thousand apartment in Sydney costs about $700 a week at an annual rent of Aussie 700X54=37800, which, at a rate of 6, costs nearly two hundred and thirty thousand yuan a year. We turn to China again, and the data show that in 2014, the average house price in Beijing was 34437 yuan per square meter and the average rent was 64.67 yuan per month per square meter, the same price, in terms of the average level of Beijing. The average annual rent for properties worth 4.2 million yuan is only about 95,000 yuan. (source: http://data.cityhouse.cn/), how does Australia's investment return on home purchases more than double that of China.
It summarizes the difference between Australian real estate and Chinese real estate, then what misunderstandings exist in Australian housing purchase?
One: focus only on areas you are familiar with or used to
Generally, overseas Chinese first rent a house when they come to Australia, and wait until the job is stable or the funds are available before buying their first Australian self-housing. Many Chinese first come to Australia with very few friends, many new friends are built near their own rental house, and a district has lived for a long time, more familiar with a district, more familiar with one area, and more convenient to see a house to buy. As far as other areas are concerned, it is lazy to take time to re-understand. This will lead to many people buying houses in Australia, usually only choose the area they are familiar with, many people look at the house for more than a year, must not be so-and-so district, but it is very difficult to find a house type, ground, price to meet their needs of the house, The result was a long delay, missed the good opportunity to enter the market, if the real estate boom, a year can even make themselves pay tens of thousands or even hundreds of thousands more. Therefore, we should focus on the long-term, unfamiliar areas of the house should also see more, more understanding.
II: obsession with the types of houses
Quite a number of Chinese people buy houses in Australia, put the type of house in the first place, must be House, with land, or must be a new Townhouse and so on. But different types of housing have their own advantages and disadvantages, the general price of House will be more expensive, cheaper areas are often not good, in a limited budget, need to be measured comprehensively. If you want to buy a house to rent, the choice of expensive independent villa is absolutely a wrong choice; Want to have a vast space for the four generations to live, apartment units appear small, so we should give up stubborn psychological ranking, objectively recognize the advantages and disadvantages of different types of housing, as well as their own needs and purchasing capacity, And strive to achieve a perfect union!
3: buy a house only to consider personal preferences, only for self-habitation
According to statistics, Australians have to change homes more than three times in their lifetime, the first is to buy a house after marriage, the second is to consider their children to go to school or change to a larger house after having children, and the third time is to move to a more suitable place for old age after retirement. So buy a house in Australia, can't hold the idea of buying a house for a lifetime. And every time the house is changed, the original house is either sold or rented as an investment house, so when buying a house, you should consider the future investment value of the house, not just consider your own preferences. Australia's real estate market, unlike other countries, has its own unique strengths, including high rent returns, relatively small investment, can be negative tax deductions, value-added effect is significant and regular, permanent property rights, no estate tax and so on. If according to their own situation, invest a few sets of value-added potential relatively big house, the pressure is not big at the same time can also have the very good profit!
4: the price of house prices is fired by the Chinese people
Australian real estate is normal and healthy, the essence of the growth is the influx of immigrants, the pace of housing construction has not kept pace with population growth, the supply is not in excess of demand. Many people say that property prices are fired by the Chinese, including many Australian media, which is wrong. Statistics from the Australian Bureau of Statistics show that the Chinese are not the main buyers in Australia, but mainly local investors in Australia. According to the Sydney word-of-mouth website, Chinese buyers in Australia are only limited to a limited number of popular Chinese districts. Many Chinese who first come to Australia have poor English, and they have a sense of intimacy in living in the Chinese area. Coupled with the influx of Chinese into Australia in the past 20 years, the first Chinese have to buy houses to settle down, of course, the limited number of Chinese areas of housing prices have risen very quickly.
Imagine that many local Australians, who owned their own large House, or even large tracts of land decades ago, now sell several times as many houses to later Chinese immigrants. Counting the money in the family also said that prices are all fired by the Chinese, it is really speechless.
5: wait for the price to fall and then pick up the bottom price.
Australia is a huge country, and the post-World War II baby boomers are getting older. Australia needs more immigrants to create taxes, sustain the sustainable development of society, have no population growth, and no new immigrants. Australia will decline, on the premise that its population continues to grow. Australia needs more housing to meet the needs of its population, but the problem is that Australia does not have as many cheap migrant workers in China, it has a long construction cycle and is expensive, and housing cannot keep pace with population growth every year. The shortage of supply caused the house price to become more and more expensive. I believe there must be friends around us who believe that Australian house prices will fall, so they have been reluctant to enter the market. Even after the financial crisis in 2008, Australian house prices have not fallen sharply, but have soared in the following years. Many people waiting for the bottom to miss the best opportunity to buy a house in Australia.
To sum up, there are too many differences between Australian real estate and Chinese real estate, Australia must learn more about buying houses, and listen to friends or netizens who have experience in buying houses in Australia.
