[Australian real estate situation] 2. Australian investment properties - what kind is good?
9/30/2022
Japan's hot summer, the thought that life expectancy is shortened. How about coming to escape the heat in the opposite season? Gold Coast in winter, warm 25 degrees during the day and 12 degrees at night. One cardigan will keep you comfortable.
And Japan's cold winter. The Gold Coast in midsummer is 28°C during the day and 20°C at night. There are 300 days of fine weather throughout the year, and although it would be nice to be able to enjoy sightseeing and various experiences on optional tours from morning to night, it is also possible to spend a day doing nothing and just lying on the sandy beach and not thinking about anything. In fact, it may be a luxurious way to spend time. When you're thirsty, have a cold beer to nourish your soul.
By the way, there are old men who often think that "Japanese beer is the best in the world!" "Foreign ones are so thin that they look like water!" You're confusing that with a famous American beer. Australian beer is darker. XXXX (Forex) has a deep flavor, and Crown Lager is a luxury type like Yebisu.
When pouring draft beer, it is Aussie style to pour to the rim of the glass. As soon as I put my lips on it, a cold beer came into my mouth, and it was delicious.
Australian real estate recommended investment properties
Now, let's get to the main topic of real estate.
Suppose you have the money. what to invest in? It all comes down to personal preference.
1: There is no income from the property, but aiming for a price increase in 10 years
2: Aim for properties with monthly income
The former is the most luxurious form to use yourself without lending it to others. However, no one can accurately read the economic situation, and it is not certain whether the price will rise in the future.
Therefore, we recommend 2, a condominium with monthly income .
There are two forms of rental.
- A type that is rented to travelers for short-term stays such as 3 nights or 1 week, called a holiday letting pool
- A type that is rented to local residents for a long period such as 6 months or 1 year
According to the above purposes, there are two types of building structures, one with reception and the other without reception.
The building where the reception is located is ideal for traveler accommodation. You can apply for day trips and introduce delicious restaurants nearby.
The building without a reception desk is for long-term residents who enter by opening the entrance by themselves.
Even in a condo...
there is a reception
For example, a relatively expensive 70 million yen condominium on the coast can be expected to have an occupancy rate of 80-90% throughout the year. During the busy season called the school holiday, even if you double the accommodation fee, the rooms will be fully booked.
The building where the reception is located is ideal for traveler accommodation. You can apply for day trips and introduce delicious restaurants nearby.
The building without a reception desk is for long-term residents who enter by opening the entrance by themselves.
Even in a condo...
there is a reception
- Perfect for short stays for travelers
- The unit price per night is high, but the income is unstable
- You can go and enjoy yourself
- Ideal for long-term rental to local residents
- Price per night is low but stable
- If you lend it to someone else, you can't go out by yourself
For example, a relatively expensive 70 million yen condominium on the coast can be expected to have an occupancy rate of 80-90% throughout the year. During the busy season called the school holiday, even if you double the accommodation fee, the rooms will be fully booked.
There are quite a few facilities that do not accept one-night stays, but in principle, the price is set so that you can stay for two or three nights or more. The longest stay I've ever had in a room I rented was 34 nights. I think you really liked it.
Basically, the cleaning fee after the guest checks out is borne by the owner of the room, so even if you receive the accommodation fee for 2 nights, the cleaning fee will be 10,000 yen, and the cleaning fee is the same 10,000 yen for 34 nights. In other words, the longer you stay, the higher your profit margin will be.
But condos also have their drawbacks. All you have to do is bring back your luggage. For those who want to keep their favorite golf clubs as if they were in a villa, or want to cook with Japanese knives, they have to bring them with them every time. It may be different from the feeling of the villa you expected.
Advantages of Duplex
So "Duplex" let me introduce a rental housing called . It is a two-family house built symmetrically . With this, you can use half for yourself and rent the other half to local long-term residents for a steady income. Half of the space is for yourself, so you can store your luggage, and you can change the interior to your liking. It would be easy to make friends with a neighbor who is only a wall away from you.
Previously, we announced that Japanese people can only buy newly built properties. The point is whether or not the duplex is being built in the desired area at the desired timing. New residential areas tend to move further and further inland from the sea. Also, if you have a foreign driver's license and rent a car, living in a residential area will not be inconvenient, but it is still more convenient to live in a downtown area by the sea. Ultimately, you should choose the one that best suits your lifestyle.
Well , both condos and duplexes have common precautions. Local people don't have a habit of taking a bath, so a lot of them don't have a bathtub! It's just a shower. Soak in the bath slowly and heal your fatigue... If you are imagining something like that, be sure to specify "a property with a bathtub" and look for it. If you're in a condominium, there are many hot water jet spas by the pool, so if you think it's an open-air bath, you can endure it. If you don't wear a swimsuit, you'll be in trouble...?
One last word. Local income is obliged to ask a local tax accountant and pay tax
However, there is a treaty that prevents double taxation, so you can deduct the tax you paid in Australia when you file your tax return in Japan. You can include the round-trip airfare as an expense, so you can get as much as you can with good feelings. If you have one room in the local area, the world you didn't know before will spread.
According to data from realestate.com.au, a local real estate site, in 2018-19, three areas of the Gold Coast saw a 15% increase in prices in a single year, with many others seeing increases of 5% or more. . This is likely due to lower interest rates, which boosted housing demand among young people buying their first home. It feels good when the area where you own your property is getting more and more expensive. We hope that you will find the perfect property at the right time.
Next time let me know the wisdom to save more than 1 cents. looking forward to.
