They are all houses, so why are they so different? Top 5 Chinese Thinking Mistakes in Australian Property Investment
"Chinatown"-Official media of Chinese Australians
Many investors, when they first entered the Australian real estate market, habitually use the domestic market investment strategy to measure Australian real estate. However, the real situation in Australia and China is very different. Therefore, investing with this concept is a hidden danger. Heavy.
1. Only focus on a few familiar areas?
Most Chinese come to Australia to rent a house first, and wait until the right time to buy their own house. When choosing an area to buy a house, the most common phenomenon is that you are more willing to pay attention to the area you are familiar with or accustomed to.
The power of inertia is powerful. It is understandable for everyone to pay attention to the areas they are familiar with or accustomed to, but habit does not mean the most suitable, let alone the best. Many people are resolutely not considering a house in a non-XX district, but they have been unable to find a suitable house for them. As a result, they were abandoned for a long time and missed the best time to enter the market.
If the real estate market is booming, a year’s time is enough to increase your budget by tens of thousands or even hundreds of thousands, and some people even have to lower the standard of buying a house while increasing their budget. Therefore, it is very necessary to have a broader vision, maybe some areas that are not so familiar will surprise you!
2. There are limitations to the consideration of transportation?
When choosing a place to buy a house, one of the most important things to consider is public transportation. However, many people take the train among the many modes of transportation as a single measure and ignore other modes of transportation. This is not advisable.
Public transportation in Australia is a comprehensive network formed by the cooperation of trains, buses, light rails, and ferries. Various types of public transportation have their own advantages, not to mention that Myki in Melbourne is now popular among the people. With the continuous improvement of the public transportation network, the difference in various public transportation costs is getting smaller and smaller, and the price advantage of trains will no longer exist. So as long as the transportation is convenient, you don't have to stick to a certain form!
Jubilee, Melbourne Future Development Centre
3. The house is just for living?
A house bought in a normal and healthy real estate market can not only be used to live by yourself, but also a tool for making money, and it is safe and effective. Australia’s real estate market is different from other countries and has its own unique advantages, including high rental returns, relatively small investment, negative tax deduction, significant and regular value-added effects, permanent property rights, and no inheritance tax.
If you invest in a few houses with relatively large value-added potential according to your own situation, you can have good returns while not under pressure!
4. Always want to wait for house prices to fall before buying?
In a normal and healthy real estate market, there is no long-term risk; in other words, it must rise in the long-term, especially residential houses (the law of tens of millions of luxury houses is different). Under the dual stimulus of the Australian government to encourage childbirth and attract immigrants, the population growth rate of Australia is as high as 2%.
As the housing supply exceeds demand today, the massive population growth in the future will make the contradiction between supply and demand in the Australian real estate market more tense, and the price trend in the future real estate market will rise even more. I believe there must be friends around you who firmly believe that Australian house prices will fall, so they have been reluctant to enter the market, so have they got their wish?
There may be slightly more options when the transaction volume decreases, but the price will not be a big bargain. On the contrary, there are many people who once believed that house prices would fall, but had to increase their budgets because they missed the opportunity. Whose responsibility is the only one who knows best!
5. Australia's housing prices are speculated by the Chinese?
Australian real estate is normal and healthy, and the essential reason for the growth is that demand exceeds supply. It is wrong to think that housing prices are speculated by the Chinese. Too many people have expressed similar views. This is wrong; the reason for this error is that we understand and are more willing to pay attention to areas where Chinese people are concentrated, and we have a clear understanding of other areas. Not enough, which creates a very typical phenomenon of "blind people touch the image, with a point of view."
The number of Chinese in Australia is about 2%. Even if an exaggerated assumption is used that each Chinese owns 10 houses, coupled with the investment of overseas compatriots, it may not be able to have a qualitative impact on the entire Australian real estate market. Therefore, there is a phenomenon that housing prices in individual districts are speculated by the Chinese, but it is a big misunderstanding to believe that the entire Australian real estate prices are speculated by the Chinese.
The article is reproduced from "Australia Yingpai Real Estate"
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