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The real estate industry is always changing, with more and more people becoming real estate owners or getting themselves ready to become a part of it. Investing in real estate in Australia has been a good choice for many, since the market is very stable and always busy. The real estate industry has been characterised over the years with very stable long-term valuations, lower interest rates, high yields, but as well access to funding and population and economic growth.
It is not only the Australians who decide to invest on the market, but there are many overseas investors buying real estate in Australia – and the number is still growing! The demand for residential housing stock is rising continuously, which is directly influencing the growth of competition for property.
Australia has an open foreign real estate investment policy, which makes things relatively easy for foreigners to dive into the market. Still, there are certain legal requirements that apply not only to foreign citizens, but also to Australian citizens. Below you can find the things you need to know before deciding to invest in Australia real estate, as well as some useful real estate tips which might come in handy.
Making any investment is tricky and investments in the real estate industry are no exception. There are certain things to keep in mind, though, that can make Australia real estate investing experience that much better.
In order to get the best possible deal out there, it is important to:
Knowing what are your exact needs are can make the decision-making process much easier! It can also help narrow down the (huge!) selection and focus on what you realistically need or want only.
So, make a list of all the thing that you expect your next property to have. What is important to you? Do you want an amazing view or a great garden? Maybe you want a pool in the backyard? How big should the house or apartment really be? There are a lot of things to be considered!
A huge 5 bedroom house on a beach might be exactly want you want, but can you really get it while staying within your budget range?
This is a crucial question that each and every one willing to make a real estate investment must ask before proceeding with the process. Expectations are tricky and many times, they leave you feeling disappointed.
In order to avoid such situations, expectations should be kept real! Being thorough with your research can help with knowing what to expect for the price you are paying, in the neighbourhood you are interested in.
Another thing that helps with expectations is price-awareness. Knowing exactly what you can afford is the ultimate tool that helps in narrowing down the selection! And not just that -smart budgeting will also help to stay away from expenses that, realistically, one knows they cannot afford to make.
The last thing you want to do when making a real estate investment is to get into a larger debt than necessary!
Most of the time sellers exaggerate when talking about the property they are willing to sell. It might not even be on purpose! The particular property might have been in their family for years and they think of it as a home, rather than a regular house. Such deep emotional connections with the property might be the sole source of the exaggeration! To them, that house is nothing but perfect!
But is it really?
No one will be able to answer this better than experts in the local market such as real estate agents. Since they work in the neighbourhood, they can give you a good run down on recent sales and all properties currently for sale. Therefore, it is always advisable to be friendly with a few agents to get a few differing opinions and see whether they can help you out, particularly with new listings!
Apart from all of these pieces of real estate advice, there are some other very useful real estate tips that we think are worth considering!
It is always important to know some handy real estate tips and real estate advice when it comes to the real estate industry.
If you are looking to make a real estate investment but the suburb you have originally liked is simply out of your budget, it might be good to consider some of the neighbouring suburbs.
Suburbs close by might offer similar conditions for a fraction of the price. Your target suburb might be high in demand, and thus, up there in prices. Many times, its rising value will spill over the suburbs nearby over time.
The location is one of the major things that are to be kept in mind when investing in real estate in Australia, or anywhere really. The location of the property is a key element.
Different locations suit different people’s needs. While some enjoy being close to the city centre, for instance, others like their quiet time. Parents might look for houses that are near a good school; employees might look for a place that is not too far from the place they work. Pretty much everyone is looking for a different thing! So, make a list of what is important to you and look for locations that will suit you best according to your list!
Knowing what is important to you in terms of the location is fundamental! Once you do know it, go a step further and actually experience the place. Visit the coffee shops, go to the closest supermarket, walk around the area or grab a meal in a local pub. Try and imagine yourself living there. If you are enjoying your ‘new’ surrounding, well, you know what that means!
Working closely with an agent might be the smartest thing to do when it comes to investing in real estate in Australia.
Agents are there for a reason! They know quite a lot and they probably know a thing or two that you simply don’t. They can advise you on getting a cheaper house that needs some touch-ups or can suggest you get an apartment, instead of a house, if money is an issue and/or you want to save money. Agents can help you develop a thorough strategy that will meet all of your goals, dreams and needs.
While these useful tips apply to pretty much everyone willing to take part of process, there are some other, more specific pieces of real estate advice that can be of great help if one knows exactly what he demands.
Once you have found a property that you would like to invest in, do not wait around hoping that the price will drop over time. Many first-time homebuyers make this rookie mistake and ultimately end up losing the deal to someone else.
Finding a suitable property is the most difficult step!
Australian real estate sellers have to pay special attention to the decision on an agent. Having the right agent is crucial, so spend some time researching in order to find a one you are sure will get you the best result.
Talk to other people that have worked with the particular agent, check online reviews of the agent and, most importantly, talk to the agent in person before hiring them.
Some other things that Australian real estate sellers are advised to keep in mind include:
Sometimes, you just cannot get the property of your dreams without getting a home loan. And that is perfectly fine! Nowadays, there are many home loans that offer some great interest rates, so it is not actually that difficult to find a home loan that will meet your needs best!
Renters ultimately ending up as buyers has been a growing trend in the Australian real estate market. Rents are rising faster than home values, yet mortgage rates remain low. This makes people calculate the buy-versus-rent ratio and realise that, in many cases, it is simply better to invest in buying a home than renting it from someone else.
Keep all of these tips in mind in order to adapt to the latest real estate market conditions! Investing in real estate might be the most important investment of your life, so you want to do it right!
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