Instructions of Real Estate Investment in Australian
June 23, 2015
- What properties in Australia can be purchased by foreign investors, and how many can they purchase?
Foreigners can buy “off-the-plan” properties, “off-the-plan” properties under the construction, completed new properties never been sold before, and the Australian bureau of foreign trial FIRB approved vacation properties, commercial properties, land, farm, rural areas and some special properties. Foreigners cannot buy second-hand properties; properties are currently occupied. The government has no special provisions for the amount of purchasing properties for foreigners.
- What are the types of residential properties in Australia?
Housing types are divided into Apartment, Townhouse, Unit, Studio and House.
Apartment is commonly the domestic apartments, generally located in the centre of the city, at least more than 3 layers, each floor has one or more units, each unit has a corridor, and generally there has elevators in the building, each unit of each layer has one or multi-family. Most of the apartments gates are security facilities which needs cards to swipe in, and it has good property management and supporting facilities, such as swimming pool, tennis court, BBQ, etc. The price is high, and the rental is expensive.
Unit is flat apartment, which can be said as lower apartment, usually 1 or 2 layer; the layer 3 is relatively rare. Generally there is no elevator but gate, and there is no swipe system, less facilities, and property management fee is low.
Studio is like a hotel room with a kitchen, kitchen and living room and bedroom is a whole one commonly, and a separate room is the toilet. The number of layers depends, higher or lower.
Townhouse originally refers to the citizens of the terrace built along the street in the urban area. Townhouse is generally consists of a few less than three layer of single-family villa of parallel terrace homes, building area is generally from 150 to 250 sqm per family, every townhouse has its own entrance and courtyard. Courtyard mostly has about 50 sqm, some even nearly 100 sqm. Each with 1 or 2 parking spaces, some even has basement. Close to the centre of the city, it has the good property management and supporting facilities, such as swimming pool, tennis court, BBQ, etc.
House features mainly include: yard, many bedrooms, relatively unique style. House has one or two layers. Far from the city centre, and no property management fee.
“Off-the-plan” refers to signing a sales contract before construction work starting. This property is generally refers to the Apartment, Unit or Townhouse. If you are planning to buy an “off-the-plan”, you need to consider the following points: the biggest advantage of purchasing an “off-the-plan” is you can save a lot of money on stamp duty. Stamp duty by law is collected by the housing property values from the date of signing contract. If purchasing an “off-the-plan”, usually this happens that signing a sales contract before construction work starting, so the stamp duty will be just levied by the land price. At the same time, in a continuous appreciation of the real estate market, real estate will be appreciated, thus this is more than the original price when signing the contract, and so, it also can make a fortune accordingly.
Another benefit to purchasing an “off-the-plan” is you can choose your own likes, such as lamps, carpet, dishwashers, etc. Finally, purchasing an “off-the-plan” also can make time to save money for the future of housing mortgage loan. Signing a contract for purchasing an “off-the-plan”, you just need to pay a deposit; the balance shall be paid until after the property is settled. There may be months or even years. Disadvantages are including the future market prices may fall as well as the property settlement time delay. Sometimes, delay could last for several years. Obviously, no one can stand such a long time. In addition, purchasing an “off-the-plan” it is hard to imagine what your property looks like in future.
- What should you consider if buying apartments in Australia?
Apartment location, apartment environment noise, privacy, apartment prices, public facilities and equipment, parking facilities, apartment building materials quality, the community, personnel structure, the real estate tax, apartment rental situation, economy conditions, the population trends, traffic, etc.
- What is the difference in the increase in value of purchasing apartments and houses?
No matter buying an apartment or a house, buyers have the free hold of the property. Considering in terms of value increase, apartment is generally close to the city centre, and thus can achieve stable and continuous growth in value, house is relatively far from downtown, value increase needs time, but once the appreciation happens, amplitude will be very considerable. Apartment is suitable for short or medium term investment and, house is more suitable for long-term investment.
- Purchasing an Australian property in China, does buyers need to go to Australia to inspect the property in person?
Buyers do not need to go to Australia to buy properties in person. Of course, buyers can also go to visit Australia. If for investment, buying a property for your child or a new immigrant, and choose the area is the centre of the city, you only need to get to know the area where your property located, the developer and the domestic agent. This kind of property has good location, which is suitable for students or locals. So you can get satisfactory returns and services as an investment property. You are welcomed to visit Australian to inspect properties and get to know well before investment.
- Is the investment in real estate in Australia helpful to immigration?
Usually people who have investment ability has the conditions of immigration, but particular case should be carried out by a registered migration agent case evaluation.
- Can I get discount on the purchase price if I pay off the whole?
Australia’s developers launched new buildings are all have no discount; real estate agents cannot change prices without authorization.