1, market
More than 20 years ago, the real estate industry in China officially entered the market, and new policies were constantly introduced, with frequent macro-control and large market fluctuations. Australia's real estate industry has a history of 100 years, maintaining a steady growth trend. In the past half century, thanks to the Australian government's policy of protecting the real estate market and the effective supervision of the financial system, the average house price has doubled every seven to ten years.
2. Legal guarantee
Buying a house in China usually goes to the real estate exchange without the participation of professional lawyers. If investors don't know the details of the contract, they will easily fall into traps and troubles in the future.
In Australia, both buyers and sellers should hire professional transfer agents or lawyers to handle legal affairs. Consulting by professionals can protect interests and reduce risks.
3. Property rights
According to the Land Management Law, the service life of residential land in China is 70 years. After 70 years, the land will be owned by the state, and the renewal fee is undetermined. Australian real estate is permanent property, which can be passed on to future generations without inheritance tax.
4. Loans
In China, the down payment is generally 20%-50% when signing a contract, and the down payment ratio for buying a second suite is higher. Before handing over the house, you should start to repay the loan, and you can only choose to pay back the principal with interest. In addition, there is no hedging account in China, so it is more difficult for people who have applied for loans to apply for loans again.
When signing an auction house contract in Australia, you generally only need to pay 10% down payment, and you can apply for about 80% loan at most, and you can choose to pay the same principal and interest or only interest. You can also open a hedging account and put extra funds into it to hedge the principal and offset the interest. In addition, it is very convenient to apply for a loan again in Australia. It is also possible to refinance after the real estate has increased in value, and cash out the value-added part for new investment.
5. Delivery of new houses
When China delivered the house, most of them were rough houses, and the walls and floors were only used for foundation treatment. After handing over the house, the owner needs to decorate it himself.
In Australia, new houses are finely decorated when delivered and can be rented immediately.
6. Risk of uncompleted residential flats
In China, the down payment is given to the developer without supervision. If the developer is short of funds, there will be the problem of uncompleted residential flats, which will make investors suffer losses and the investment risk will be greater.
In Australia, the down payment is deposited in a trust account supervised by the government, and the developer has no right to use it before handing over the house.
7. Negative tax deduction
China has no negative tax deduction policy. In Australia, if the current rental income is less than loan interest, construction depreciation and other expenses, the government allows investors to declare losses and deduct other income.
8. Lease management
In China, the housing lease management system has not yet reached the scale, specialization and standardization, the legislative work lags behind, and the lease management company lacks follow-up services. The leasing industry in Australia is relatively formal, and leasing management companies can provide investors with a series of services, including publishing leasing advertisements, screening tenants, managing properties, collecting rents and paying fees.
9. Rent return
According to the report, in the first half of this year, the average rental return rate of ordinary houses in 17 large and medium-sized cities nationwide was 2.6%. The rental returns in Shanghai and Beijing are 1.9% and 1.8% respectively. The rental return rate of Australian capital cities is generally between 4% and 6%.
10, vacancy rate
20 15 China housing vacancy rate report shows that the vacancy rate of urban housing market in China is 22.4%, while the vacancy rates in Shanghai and Beijing are 18.5% and 19.5% respectively. According to the statistics of Domain group, an Australian real estate information website, the rental vacancy rate of major capital cities in Australia is below 3% this year 1 month. According to international practice, the vacancy rate between 5%- 10% is reasonable, which shows that the balance between supply and demand of commercial housing is conducive to the healthy development of the national economy; The vacancy rate between 10%-20% is a vacant danger zone, and some measures need to be taken to ensure the normal development of the real estate market and the normal operation of the national economy; The vacancy rate above 20% is a serious backlog of commercial housing.