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  • Writer's pictureAlison Wong

8 Australian Property Investment Strategies Your Agent Won't Share

Updated: Apr 11


Every country has its own unique culture and customs. If we are preparing to invest in Australia, what “Australian characteristics” can help us choose a suitable property?


Buying properties in Australia is not an easy task. How do you identify what kind of property is worth investing in as an asset?


In short, any property suitable for living is good; if you invest, you need to buy a house suitable for tenants to live in to earn high returns.


However, no matter the purpose, the secret to investing in Australia is the better, the better, and the longer you hold, the better. Then, in terms of details, if you want to choose a high-quality, investment-level Australian property, you must pay attention to these 8 skills:



1. Geographical location

In Australia, excellent geographical location is key to the preservation and addition of value to the property. People who have lived in Australia for many years will have a clear concept of the “district” of a city. Because the characteristics of each area are different, the economic standards, supporting facilities, and public security levels are different.

From the perspective of long-term appreciation, many Chinese friends have witnessed the popularity of the Glen Waverley real estate market in Melbourne, so it is not difficult to see that the next hot spot is Doncaster East. Regarding rental returns, Australian apartments are the best type of property for cash flow; there will always be good rental returns in the city centre or areas near the CBD.


2. Market demand

Before buying properties in Australia, you must ensure that you or your agency has done a market survey. You need to know what type of real estate in different regions is in the most demand for the market. For example, if your budget is limited, but you want to buy a house, Melbourne’s Werribee and Berwick areas are all emerging areas of vigorous development. It is recommended to start as soon as possible to get the dividends brought by the next round of Australian real estate.


3. Local thinking

Many Chinese friends who buy buildings in Australia often fall into the trap of purchasing Australian properties with inherent thinking. The real estate market in Australia and Hong Kong is very different. For example, many Chinese friends are rich, so they replace small houses with large houses, cheap houses with expensive houses, and broken houses with brand-new houses. This kind of house-purchasing behaviour is understandable; everyone wants to live in a large, bright house. However, this kind of house buying method and thinking model is bigger and more expensive and may only be consumer-type home-buying behaviour with the gradual expansion of debt scale and the gradual reduction of disposable cash flow.


If you are involved in property investment in Australia and want to eventually increase your wealth and even achieve financial freedom through property investment, you must abandon your previous inherent thinking. Instead, choose to buy a house as soon as possible. Do not waste time on savings. Buy Australian real estate that you can afford.

Then, hold it for a long time instead of selling it without slightly increasing the price. In this case, you should hold the property for one or more real estate growth cycles (7-10-15-30 years). When the property’s value is much higher than the purchase price (such as twice, three times, or even more), you will balance your liabilities and finally realise zero liabilities. You will also achieve a real estate investment portfolio with passive rental income.


4. School district trap

When buying in Australia, many Chinese friends care about whether there are good primary schools and high schools, or universities around their property. They believe such a house is the same as in Hong Kong and appreciates faster. In fact, properties near schools and universities are not the fastest to add value in Australia.


In addition, it is necessary to pay attention to a trap in Australian real estate here: the division of school districts in Australian real estate often changes. Sometimes, there will be a set of two houses in the school district, where one is in the school district, and the other is not. Before buying, you must find a reliable Australian licensed real estate agent to understand school districts, or log in to the official website of My School to learn more: https://www.myschool.edu.au/


5. Pre-purchase survey

If you are looking for new Australian apartments and real estate, then you must investigate who the developers and architects of the apartment are first to see how their previous apartments have been launched. If you like houses or townhouses, you need to understand the local urban planning while paying attention to builders – this can save a lot of unnecessary trouble.


One of the situations people often encounter is buying properties with good scenery in Australia. Later, they discover that a developer is ready to build an apartment building next door, which will block the scenery. Another situation is that if your future neighbours are planning to carry out a large-scale renovation and the streets are designated as a regional transformation, then your plan after buying the property may be affected. If you want to know the urban planning and approval of real estate in a certain district of Australia, you can check it online. For example, in Melbourne, you can use www.landchecker.com.au.


6. Existing house advantage

If you are going to buy existing real estate in Australia, then an apartment with a beautiful appearance and a small parking lot is the most popular choice. In Australia, if an apartment is a popular hot property when sold, it is likely to be a popular choice as a rental. Another advantage of buying real estate in Australia is that what you see is what you get, and all supporting facilities in this apartment can be seen before you buy.



7. Rental prospects

Before investing in a property in Australia, check the potential customers in your area. Is there a railway station, university, shopping mall, small business district, unique professional college, or training centre in your area? If there is, generally, there will be a relatively strong demand for rentals, and rent will naturally rise.


8. Reasonable housing

If you buy property in Australia, the purpose is mainly to invest. You must not be emotional. I understand that when people see the house they like, they will imagine a scenario in which they live in it and can’t help but want to buy it. Still, one thing you want to recognise is that you are buying a house for investment, not for yourself. The factors you must consider should be the rental return of the house, the room for increasing property value, etc. I have a customer who lives in Hong Kong all year round and buys Australian property to prepare for retirement. He bought a house that he thought was very beautiful. As a result, because of the factors that he did not consider, he could not rent it at a reasonable price. He has been facing retirement for at least 20 years and could have made a lot of rent if he had considered these factors initially.


Summary:


From the economic development perspective, real estate is an important factor and is upstream in asset value in the long run.


From the perspective of investment income, investing in overseas real estate, on the one hand, through the rise in the value of the real estate itself, will allow you to obtain investment income. The other option is to obtain annual cash flow benefits through real estate rentals. Overseas rental yields are often very high, and Australian properties are among them.


The advantages of Australia’s education standards, air quality, laws and regulations, food safety, etc., attract a large number of immigrants from all over the world each year, and these new immigrants will need to be equipped with Australian properties to meet their needs. Many parents will choose a house in a good school district in Australia to give their children a better education. Similarly, Australia attaches great importance to food safety and environmental issues. The purchase of Australian real estate can lay a good foundation for future immigrants so that they can enjoy a safer and healthier food and living environment.


If you want to know more about buying Australian properties, you can watch my video, which teaches you how to deal with Australian real estate agencies when purchasing property as an overseas buyer:



 

Alison’s Story

Born in Hong Kong an moved to Australia, I have been associated with real estate all my life. As the plane slowly landed on the runway of Melbourne Airport, my life and career also changed to another runway. I changed from a Hong Kong real estate agent to an Australian real estate agent, and successfully obtained the Australian lawyer qualification.


When I was working in a law firm, I was surrounded by highly educated professionals. Even though their wages are very well, and they are absolutely the elites in society, but their lives are full of hard labor, and it’s hard for them to get rich through buying properties.


So I spend all my time and effort on learning financial and real estate investment knowledge, hoping to achieve financial freedom as soon as possible, and let my parents who have worked hard for many years live a good life.


Now I will share with you the knowledge and experience of investing in Australian real estate, and embark on the road to financial freedom together.


Alison Australian real estate information platform


The original intention of Miss Alison to establish investwithalison.com is to provide neutral Australian real estate information through this platform and help investors establish the most suitable investment strategy.


👉Website: investwithalison.com

👉Email: hello@investwithalison.com

👉Linkedin: linkedin.com/in/alisonwongaustralia/



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