How real estate in Australia can learn
Finding an affordable or within budget property is a challenge not just in Australia but also for people across the globe according to a recent Domain report. Fortunately, understanding how the rest of the real estate markets across the globe work should help you figure out how to invest best. More importantly, checking out what other investors do will provide you insights on where you should put your money into.
Variations of approaches
Throughout the globe, governments have tried to finance different types of housing, buying properties to ease demand while also protecting tenants. This also offers long-term leasing opportunities. However, in regions like Australia and other nearby areas, there is a tug of war between buying and selling that fuel price hikes.
Dr Shaw, from the University of Melbourne, shares (via News Domain): “Speculative property investment – this is a national pastime, this game of Monopoly in which more than one in seven taxpayers in Australia are negatively gearing their investment properties and receiving concessions on capital gain tax.”
“This is creating extraordinary churn. We are buying, selling, demolishing, rebuilding, selling, buying more than ever before, and this is pushing up prices.”
How do we solve such crisis? A look into other markets should give helpful and powerful insights.
Singapore
The government of Singapore is best known for sponsoring public housing and construction. The programs, comprised of units and condos, target lower-middle income group. Buyers can sell the units again but are obliged to follow rules on timing. Looking at the government’s response to demand and its decision to release housing upon necessity have been helpful in quelling price increases. This has also imposed limitations on foreign ownership thus driving property prices down.
England
England previously had to address urban containment philosophy. This means managing the urban sprawl and developing greenbelts of open lands surrounding the cities eventually pushing process of real estate. The more limited available lands for development become, the higher the demand for existing housing supply. To address this, the government implemented mortgage lending limits. This is the first policy of its kind passed in the region for decades.
How a Sydney financial planner can help?
These are just some of the examples how other countries are addressing escalating real estate prices. In Australia’s case, one option for homeowners to save more on their properties or at least manage the prices better is through using their super funds to purchase an investment property.
According to Sydney financial planning experts, it is best to consider a superfund at an earlier age as opposed to utilising it when you get much older. However, this also depends on several other factors. As with an investment decision, it is important to understand the pros and cons. Consulting with an experienced financial planner in Sydney that understand self managed super funds and how to access and use them effectively could be a good move.
Looking for real estate experts in your area?
If you are looking for real estate experts including professionals like financial planners, tax accountants, mortgage brokers etc who can advise you on buying, moving and selling and the implications of your decisions, the Tradebusers Connect free local choice directory offers a range of experienced businesses to help you.
Other useful links:
Real Estate Agent Blue Mountains