Property Group

[joeman]

Recently, there was a trade show in my country where some sale agents were trying to promote to me to buy a property in Australia using my local currency to enjoy the low interest rates in my country.

I find it a bit pricely for a 1 bedroom apartment at SG500K which is about A$450K at the outskirt of the city.

The reasons the agent cited are

1. good rental returns. Able to give A$2.2K per month.
2. most foreginers love to stay outside the city.
3. good amendities in place

I am skeptical of such claims and wonder if a single bedroom is so highly priced in the outskirt of the city (10 to 20 mins drive). I know a single bedroom is about that price in the city.


What do you all think ?

[amaslam]

By and large most renters prefer to stay in the city. 500k sounds like too much for anything on the outskirts (unless it has beach views).

Even in Sydney you can get 1 & 2 BR beach view stuff that is in the Eastern suburbs. I wouldn't go with the trade show guys.

For your 500K you could even buy (2) units in some cities (i.e. Adelaide) so check out the rental returns based on that.

You want to concentrate on rental yield (at least 3%)
and the following wants:
1. Near public transport
2. Near shops
3. 45 mins or less commute time to the CBD

When you tick those boxes the places rent well and reliably. The 'beach view' thing is a bonus, but it's the numbers that are all important.

Originally Posted by joeman

Recently, there was a trade show in my country where some sale agents were trying to promote to me to buy a property in Australia using my local currency to enjoy the low interest rates in my country.

I find it a bit pricely for a 1 bedroom apartment at SG500K which is about A$450K at the outskirt of the city.

The reasons the agent cited are

1. good rental returns. Able to give A$2.2K per month.
2. most foreginers love to stay outside the city.
3. good amendities in place

I am skeptical of such claims and wonder if a single bedroom is so highly priced in the outskirt of the city (10 to 20 mins drive). I know a single bedroom is about that price in the city.


What do you all think ?

[anj1976]

a friend picked a 3 room unit (not an appt but a bungalow, i dunno what its called in AU) with lawn and back yard, garage for 2 cars in the outskirts of Melbourne for 318k. a single room apartment for 500k sounds insane.

[kaz101]

The guys at trade shows are there to sell - it's that simple.

Use the property links in the 'PLEASE READ: Helpful websites for your move to Australia' and check what other properties are going for in the same area.

What will the running costs be? So how much for managing it, servicing your mortgage, insurance etc... You want to make sure that you are cash flow positive when dealing with a foreign currency (I speak from experience here!).

In Melbourne that sort of rental income is for central 2 bedrooms properties and not usually for properties on the edge - but check the property websites.

Check they have FIRB (foreign investment review board approval) since if not then they can't sell properties to non-Australian residents.

Keep doing your research. Sorry if that seems obvious but the trade shows are there to sell and that's all.

Regards,
Karen

[joeman]

Thanks mate....

The only reason why i wanted to leverage is on the low interest rates I get in my country compare to if I will to take a bank loan from Australia.

But if the price different is so much as 100K, then of course why be so stupid to buy that kind of price...