Do not step into these six misunderstandings when buying a house in Australian Real Estate Market. The national conditions of Australia is very different. The difference between Australian and other countries real estate is even greater. Therefore, buying a house in Australia must not completely copy the domestic experience.
Let’s See the 6 Myths in Australian Real Estate Market
1. Think that the House is just for a Living
A house bought in a normal and healthy real estate industry can not only be used to live in, 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 deductions, significant and regular value-added effects, permanent property rights, and no inheritance tax. If you invest in several houses with relatively large value-added potential according to your own situation, you can have good returns while not under pressure!
2. Only Focus on a Few Familiar or Used Areas
Most foreigners come to Australia to rent a house first and wait until the right time to buy their own house. When choosing the area to buy a house, the most common phenomenon is more willing to pay attention to the area you are familiar with or used 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. There are many people who resolutely do not consider houses in non-XX districts, 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, one year is enough for you to increase your budget by tens of thousands or even hundreds of thousands, and some people even have to retreat 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!
3. Have a Stubborn Psychological Ranking for the Room Type
If you have too stubborn psychological rankings for different housing types, it will definitely affect your judgment. Quite a lot of people have a psychological ranking of housing types, and they absolutely rank independent villas with land first, followed by other types of independent housing, and finally apartments and unit buildings. If viewed objectively, different types of houses have their own merits and are suitable for different purposes. For example, if you want to buy a house to collect rent, it is definitely a wrong choice to choose an expensive independent villa; if you want to have a large space suitable for four generations to live in one family, the apartment building is slightly narrow. so you should give up Stubborn psychological ranking, objectively recognize the advantages and disadvantages of different room types, as well as their own needs and purchasing power, so as to strive to achieve a perfect combination!
4. 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 regard the train among the many modes of transportation as a single standard and ignore other modes of transportation. This is not desirable. 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. Moreover, the Opal card in Sydney will soon be popularized by all people… With the development of the public transportation network with continuous improvement, 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!
5. You Should Always Want to Wait for the Price 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 luxury houses with tens of millions is different). Under the dual stimulus of the Australian government to encourage childbirth and attract immigrants, Australia’s national population growth rate is as high as 2%. With regard to the situation that housing is already out of 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 industry will rise even more.
I believe that there must be friends around you who believe that Australian house prices will fall, so they have been reluctant to enter the market, so they have achieved their wishes? Maybe there are slightly more choices when the transaction volume decreases, but the price will not be picked up Great bargain. On the contrary, there are many people who believed that house prices would fall, but they had to increase their budgets because they missed the opportunity. Whose responsibility is the one who knows best!
6. Australian House Prices are Speculated by the Chinese
Australian real estate is normal and healthy, and the essential reason for the growth is insufficient 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 an obvious understanding of other areas. Not enough, which created a very typical phenomenon of “blind people touch the image and get an overview.”
The number of Chinese in Australia is about 2%. Even if an exaggerated assumption is used that every Chinese owns 10 houses, coupled with the investment of overseas compatriots, it may not 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 wrong to believe that the entire Australian real estate prices are speculated by the Chinese.
The above are the six misunderstandings of buying a house in Australia. I hope that it will be helpful to those who are interested in buying a house in Australia. If you have more questions, please consult with me. I would love to clear out all your misunderstandings regarding Australia real estate and real estate agents.