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Investing in real estate in Australia has always been highly sought after by Hong Kong people. Especially in recent years, there has been a strong immigration trend. Buying land and building a dream home in Australia has become a hot topic. But do you know what to pay attention to when buying a house & land in Australia? This article will analyze the pros and cons of buying land and starting a house in Australia from multiple perspectives.
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Advantages and disadvantages of buying land and starting a house in Australia
The advantages of buying land and starting a home in Australia include:
• Spacious living space in detached house
Compared with units in Hong Kong buildings, Australian detached houses can undoubtedly provide a larger living environment. Buying land in Australia usually has 2,000 square feet of land. Even if you only build a single-storey detached house, the living space is much larger than that in Hong Kong. Moreover, you can also have front and back gardens to enjoy the fragrance of birds and flowers.• Save on stamp duty
Stamp duty will be calculated based on the transaction amount for the purchase of strata and townhouses. However, if you buy land to start a house, the stamp duty will only be calculated based on the land value. The buyer can save the stamp duty on the cost of building the house. If you want to resell the property after a few years, the previous stamp duty will be deductible.• Freedom of architectural design
Buying land and starting a house is mainly divided into two categories: “house & land package” and “buy land and find a builder for OEM”. Buyers of “house & land package” You can only choose from packages pre-designed by the developer, so the degree of freedom is reduced. On the other hand, buyers who “buy land and find a builder for OEM” can choose their own architects and interior designers according to their own preferences and needs, and discuss with them details such as architectural style, materials, interior spacing, and living facilities. If the land you buy is spacious enough, you can even add a garage, swimming pool, etc. Although the choice is more flexible, the buyer will bear greater risks. Just like hiring a decoration master in Hong Kong, the buyer must supervise the progress and quality of the project locally. In addition, due to the impact of the epidemic in recent years, the overall construction cost has risen , and it is even more difficult to go to the local area to supervise closely, so it is more difficult to grasp the construction cost and price of a detached house.• Strong appreciation potential
Many people think that Australia is so vast that there must be a lot of land available for the real estate market, but this is not the case. In big cities such as Brisbane, Sydney or Melbourne, urban planning limits the supply of land on which houses can be built, making house sites increasingly valuable.
• Own land freehold
After buying the land, the buyer can own the freehold title of the land, which increases the flexibility of using the land in the future and caters to different investment needs.
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The disadvantages of buying land and starting a house in Australia mainly include the following:
• Risks arising from construction companies
As mentioned above, you can communicate with the construction company in person to design the dream home, but it is also a double-edged sword. It is ideal if the project goes smoothly, but the Australian team of lawyers will only be responsible for legal procedures such as land transfer. It was exhausting to follow up with the construction company on my own. And, in addition to the inconvenience and late move-in date, construction delays may also run into Australia’s construction period restrictions. Since different cities and locations have different restrictions, we recommend that you consult a real estate expert or lawyer who is familiar with local laws before buying land and starting a house.• Keep the land tidy during the construction period
The Australian government has strict hygiene requirements for construction sites. For example, there are certain procedures for handling construction waste, and the construction site cannot hoard garbage or allow weeds to grow. It is not easy for overseas investors to ensure that construction companies comply with the above regulations.• May not be suitable for buyers who are unfamiliar with building design and cannot stay there for a long time
Dealing with the construction of detached houses is not an easy task, and it is even more difficult for those who have never dealt with it in Hong Kong. Therefore, buyers must be mentally prepared to invest a lot of effort, time and money in this area. Therefore, buying land to build a house may not be suitable for people who are not familiar with building design.• The living facilities in the single-family area are not as good as those in the city center
Most of the land that can build a detached house is located in the suburbs. In terms of urban planning and living facilities, there must be a gap between the suburbs and the city center. On the outskirts of the city, the closest supermarkets, community facilities, and even convenience stores are often not within walking distance, and it takes more than ten minutes to arrive by car, which is undoubtedly more inconvenient than living in the city center. In terms of transportation, each district on the outskirts of the city may have only one train station and a few bus routes, which cannot be compared with the public transportation facilities in the city center. In the middle of the night, there is not even any public transport arriving.
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Is it more suitable for Hong Kong people to invest in detached houses with land or strata in Australia? Of course, there is no certain answer to this question, but according to our years of experience in investing in real estate in Australia, under normal circumstances, investing in strata units is more suitable for Hong Kong people. First of all, the mode and convenience of living in the city center are similar to those in Hong Kong. After many Hong Kong people immigrated to Australia, even if they live in a big city, they often find that the convenience is still a significant distance from Hong Kong, let alone living in the suburbs.
In addition, the procedure of purchasing a strata unit in Australia is similar to that of Hong Kong, which is naturally easier for Hong Kong people to master. Finally, although the law and order in Australia is generally good, there are still sporadic thefts of detached houses in the suburbs, and Hong Kong immigrant families frequently travel between Hong Kong and Australia. In contrast, the public security of strata units in the city center is relatively complete, and a key card is required to enter and exit the building and even enter each floor, which is more secure for owners or tenants.
The advantages of buying land and starting a house in Australia are attractive, but before making a decision, you must carefully weigh your own capabilities and the pros and cons of all parties. If you have any questions about Australian detached houses or other types of properties, please contact Changmei Australia Property Corporation immediately. With more than 22 years of experience, we have collected many high-quality real estate in Brisbane, the capital of Queensland, to provide you with one-stop property investment, leasing management, mortgage services, immigration and education and other professional services.