Set in the city
Newcastle in New South Wales and Geelong in Victoria have improved their returns over the last decade, and Darwin, the capital of the Northern Territory, has been a strong performer for the last 10 years. Coastal areas like Queensland’s Gold Coast and mining towns like Port Headland in Western Australia have a history of stellar capital growth followed by slumps. Research the market and look for the usual investment indicators – infrastructure projects and commitments; proximity to amenities, schools and hospitals; lifestyle advantages like beaches or stunning views; a diverse economy; and a solid track record
For apartment investors, the best locations are usually in suburbs 4 – 8 km from the CBD. For stand alone houses, the best locations tend to be a little further out, around 6 -12 km from the centre.
It’s wise to target a location within walking distance of a village-style shopping strip and close to public transport, parks, schools and entertainment areas.
1. Check your finances
2. Get a pre-approval
3. Set your goals
4. Understand your attitude to risk
5. Start budgeting
6. Create a purchase plan
7. Be informed
8. Stay focused
The scale of Chinese investment in the Australian residential property market continues to polarise public opinion.
Chinese buyers are often blamed for driving up house prices in Australia and causing the current affordability crisis.
However, Chinese offshore purchases are surprisingly low.
Based on Foreign Investment Review Board (FIRB) approval figures, ABS data on actual Chinese investment in commercial real estate, it is estimated Chinese residential real estate investment totals around 2 per cent of all residential real estate transactions in Australia.
In legal terms, “Chinese investors” are defined as those who require FIRB approval for their residential property purchases.
This figure is obtained by dividing estimated Chinese investment volume in residential real estate by the total volume of residential real estate transactions.
For the financial year 2013-14, based on FIRB statistics, it is estimated residential property investment by Chinese investors was $5.8 billion.
This is consistent with KPMG/University of Sydney (USYD) data on actual Chinese investment in Australia.
According to the Australian Bureau of Statistics, the total sales value of residential property in Australia for the same period was $258 billion.