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33 Most Commonly Asked Questions About Australian Real Estate
and Answers to Relieve Your Concerns About Investing in Australian Real Estate
The 33 most commonly asked questions about Australian real estate and answers to relieve your concerns about investing in Australian real estate:
1: THE CHARACTERISTICS OF THE HOUSING MARKET IN AUSTRALIA?
A: Simply in a nutshell: social stability and sound policies, a sound legal system, the real estate market is mature, stable appreciation active rental market, low vacancy rates.
2: WHAT ARE AUSTRALIAN REAL ESTATE VALUE PROSPECTS?
A: Australia real estate economic experts think: The demand for Australian real estate by the growing demand for immigration and study abroad, and to promote appreciation of the factors that will exist for a long time, it is expected that from 2004 to 2012, the Australian real estate will be doubled.
3: WILL THE AUSTRALIAN REAL ESTATE MARKET BE DEVALUED?
A: Historical detailed data for reference, the Australian real estate market on average doubles every seven years. So in the long-term point of view, there is no real estate depreciation in the Australian real estate market.
4: GOOD REASONS FOR INVESTING IN THE AUSTRALIAN REAL ESTATE MARKET?
A: Stable appreciation and return on investment, diversification of investments, reduce risk; full use of bank loans, bank loan interest only not the principal; purchase procedures simple and reliable.
5: HOW TO CHOOSE YOUR REAL ESTATE PROPERTY FOR THE BEST VALUE FOR YOUR INVESTMENT INTO THE AUSTRALIAN REAL ESTATE MARKET?
A: Australia listed Real Estate investment projects which are carefully selected provide the most investment potential in an Australian Real Estate project (including the location, quality, size, and environment and other supporting facilities). Real Estate experts will base their advice and decisions on the above factors to help you make the best choice. So it is worthwhile to contact a reputable real estate agent or buyer’s agent to assist you to obtain a good real estate investment in Australia.
6: HOW TO AVOID REAL ESTATE MARKET INVESTMENT PROBLEMS?
A: The real estate investment depends on the market environment at any one time. To buy investments which are different from the self-housing investments in real estate you should consider the "return on investment" and "risk" factors, emotional factors should be reduced; feelings of many factors from housing investment, attention to rational analysis, to investment or not to investment at that particular time. A good real estate agent or buyer’s agent is invaluable when you are considering whether to invest in real estate or not.
7: WILL THERE BE A REAL ESTATE MARKET OVERSUPPLY IN THE AUSTRALIAN MARKET?
A: Analysis from Australia's history shows this will not happen because of centuries-old real estate market supply and demand relationship is now very mature. Even if there was a supply and demand gap in proportion would only be temporary. Because in fully marketed countries, the developers make timely adjustments to suit the current market conditions, they will not violate the laws of the market economy by over-exploitation.
8: IS THERE ANY DIFFERENCE BETWEEN REAL ESTATE INVESTMENTS IN DIFFERENT CITIES WITH IN AUSTRALIA?
A: Overall less, just different cities, housing prices, the rental market is slightly different; Sydney, Melbourne, Brisbane and the Gold Coast show appreciation potential.
9: WHAT ARE THE REQUIREMENTS FOR OVERSEAS INVESTOR’S WISHING TO INVEST IN RESIDENTIAL OR BUSINESS REAL ESTATE IN AUSTRALIA BY THE AUSTRALIAN GOVERNMENT?
A: Overseas investors can only buy Australia's newly developed residential real estate (industrial and commercial real estate is no such limit), Australia requires that 50 per cent of new residential housing projects can be sold to overseas investors.
10: WHO GUARANTEE THE SAFETY OF THE INVESTOR'S ASSETS IF THEY INVEST INTO AUSTRALIAN REAL ESTATE MARKET OR BUSINESSES?
A: Australia has a sound legal system which can fully protect the interests of investors and their assets shall be violated. You should seek advice from qualified property investment companies to assist in obtaining a sound investment or a property law firm.
11: IS INVESTMENT IN THE AUSTRALIAN REAL ESTATE MARKET FOR IMMIGRATION HELPFUL?
A: Usually you will have the ability to invest in large part and will have the relevant conditions of immigrants who has investment assets in Australia as a necessary condition of the immigration category of business immigration and retirement, the specific circumstances of case assessment should be carried out by a registered migration agent. Your migration agent may know a reputable real estate agent or buyer’s agent so ask them for their recommendation for one of these agents to assist you or contact a property law firm who can be of invaluable assistance regarding real estate or business in Australia.
12: CAN REAL ESTATE BE INHERITED BY THE CHILDREN OF PARENTS?
A: The law states that real estate whether residential or business can be inherited by their children or to whomever they wish to leave it too in their will.
13: ABOUT HOW MUCH MONEY IS REQUIRED TO BUY AN APARTMENT IN AUSTRALIA?
A: It depends on the project, including the factors of location, facilities, size, environment, transportation. Housing prices start around about $300,000 to $600,000 Australian dollars, for a moderate condition residential apartment, average price is about $400,000. Prices do vary a little depending on the market and style of apartment.
14: WHAT ARE THE PAYMENT METHODS OF BUYING REAL ESTATE IN AUSTRALIA?
A: Customers can choose a deposit of 10 per cent of the house price as a down payment, and then apply for a loan at the same time. The loan is called a mortgage and obtainable from any financial institution or financial broker in Australia. Or they may pay full purchase price if they chose to or have the resources to do so.
15: INVESTMENT LOANS FROM AUSTRALIAN FINANCIAL INSTITUTIONS?
A: Yes they are available. Note, however, you can choose a monthly interest only, not the principal, with the Australian investment loan. This way is a manifestation of the mature and stable lending policies. At the same time, allows investors with a minimum investment to gain return for the highest return.
16: HOW TO APPLY FOR A LOAN FROM AN AUSTRALIAN FINANCIAL INSTITUTION?
A: Customers need to provide personal identification and proof of income; they then make application to the financial institution of the choice. Waiting time for a reply depends on the factors of their application; but is normally 14 days from the initial application.
17: HOW TO BUY A HOUSE IN AUSTRALIA, WHAT IS THE PROCEDURE?
A: Customers pay a deposit of 10% of property purchase price. They first exchange contracts for 10 per cent of the house value, this goes into the Australian Lawyers Trust Account; or the Real Estate Agents Trust Account. The solicitor then carries out checks on the prop0erty to be purchased, this usually takes six weeks. After this is completed the solicitor will authorise the Real Estate Agent to release the money funds to the seller of the property; this is called “An Order On the Agent” once the real estate agent receives this all funds are released the agent takes his commission, the solicitor has changed the names on the “Title Deeds” into the new owner’s name. The purchase is now completed and the property belongs to the purchaser.
18: HOW TO GENERATE A PROFITABLE INVESTMENT IN THE AUSTRALIAN REAL ESTATE MARKET?
A: Investors mainly rely on two factors; the appreciation of the purchase and appreciation of rental yields.
19: QUALITY OF HOUSING AND WHAT TO DO ABOUT IT IF PROBLEMS ARISE?
A: A real estate developer must guarantee their work for seven years; at the same time, Australia requires real estate developers must first pay the insurance required for the period of seven years on the quality of the housing construction. If you have any problems, the insurance company will be responsible for compensation; Australia has strict housing delivery use of standard regulations and strict procedures, the Building Inspector of the Local Government carries out property inspections at different stages and signs off on the quality of the work before an “Occupancy Certificate” can be issued. This ensures quality of workmanship of the property by the developer.
20: IN ADDITION TO PAYING BACK THE PRINCIPAL OF A LOAN WHAT ARE THE OTHER COSTS INVOLVED?
A: Listing prices are different from location to location. The taxes paid are based on the purchase price. Tax is stamp duty E.G.in Sydney it is about three per cent stamp duty; the main expenses are attorneys' fees, loan fees, annual interest rates, land tax and water charges, building management fees, leasing agent fees, insurance, etc.
21: HOW MUCH IS THE INTEREST ON A HOUSING LOAN IN AUSTRALIA?
A: If you are in Australia, local bank loans, the interest rate is generally around seven per cent.
22: THE ENTIRE PAPERWORK HOW MUCH TIME IS INVOLVED?
A: The various stages of the work program add up to 48 working days.
23: IF I PAY THE FULL AMOUNT IS THERE THE POSSIBILITY OF A DISCOUNT?
A: Real estate developers in Australia to launch the all discount sales, sales agents cannot arbitrarily add and subtract price Australia as there are strict and detailed requirements of the law in this regard.
24: PROPERTY OWNERSHIP CAN BE HOW MANY PEOPLE TOTAL?
A: There is NO limitation.
25: IN THE DIVISION OF PROPERTY, WHAT ARE THE PROCEDURES FOR HOW TO HANDLE IT?
A: The lawyer is responsible for sorting out the property ownership rights. The total dollar amount per person in the property will indicate what proportion each person is entitled too according to the contract.
26: WHAT IS THE RENTAL YIELD FOR THE INVESTMENT HOUSE?
A: A rental market in Australia is very active and the development of mature, well-established laws and regulations related to the leasing residential vacancy rate is normally only about one per cent to three per cent.
27: WHAT IS THE INVESTMENT RENTAL YIELD, USUALLY HOW MUCH?
A: The rental price is very regular, usually weekly rent is one-thousandth of the prices, that is, if the housing purchase price was $ 400,000, the weekly rental yield is approximately A$400.
28: WHO HELPS FIND RENTERS?
A: Optional assistance from the real estate agent or rent out themselves.
29: HOW TO OBTAIN RENTAL YIELDS FOR THE INVESTMENT PROPERTY FOR THE INVESTORS?
A: Australian real estate agents can be of assistance here as they have all of the resources available to them to obtain tenants, collect the rental yield issue monthly reports on the investment property to the owner, arrange for maintenance on their investment property.
30: THE HOUSING VACANCY RATE, WHAT TO DO ABOUT IT?
A: The Australian housing vacancy rate is about 1 to 3 per cent with a rate of ninety-seven per cent to ninety-nine per cent occupancy rates. Generally Australia does not have enough vacant housing to rent. So this keeps the vacancy rate low and occupancy rate high.
31: WHAT IS THE PROTECTION AND MAINTENANCE FOR PROPERTY INVESTORS IN AUSTRALIAN REAL ESTATE MARKET?
A: The real estate firm is commissioned responsible for maintenance of the investor’s property or the investor can carry out their own maintenance. The real estate agent is normally responsible for choosing the tenant but this can also be done by the property owner. Normally 4 weeks rent in advance is required as a bond against damage to investment property or for non-payment of rent, also the tenant must pay 2 weeks rent in advance to the real estate agent or owner of the investment property. This makes a total of 6 weeks rent in advance before the tenant can take up residency in the investment property. Investment property owners should also take out “Landlords” insurance when putting tenants in their investment property to guard against the tenant getting too far behind in rent or in the case of extreme damage to the investment property.
31: WHAT IS THE PROTECTION AND MAINTENANCE FOR PROPERTY INVESTORS IN AUSTRALIAN REAL ESTATE MARKET?
A: The real estate firm is commissioned responsible for maintenance of the investor’s property or the investor can carry out their own maintenance. The real estate agent is normally responsible for choosing the tenant but this can also be done by the property owner. Normally 4 weeks rent in advance is required as a bond against damage to investment property or for non-payment of rent, also the tenant must pay 2 weeks rent in advance to the real estate agent or owner of the investment property. This makes a total of 6 weeks rent in advance before the tenant can take up residency in the investment property. Investment property owners should also take out “Landlords” insurance when putting tenants in their investment property to guard against the tenant getting too far behind in rent or in the case of extreme damage to the investment property.
33: HOW TO SELL REAL ESTATE IN AUSTRALIA?
A: To sell real estate in Australia it is wise to use a Licenced Real Estate Agent. They have all the training and knowledge on the how’s and why’s of selling property in Australia. The property owner can do it themselves; but there are certain laws which must be obeyed when selling real estate in Australia and the real estate agent is trained to know all of them. They also have all of the resources to sell your property quickly. E.G. where and how best to advertise the property being sold and how much is required to be spent on advertising the property to be sold.