Mr. Hoang Ha Phan, Managing Director of IDJ Group – the direct unit introducing a number of projects in Australia to Vietnamese investors will share some reasons why the rich prefer real estates abroad.
– Why do rich people like to buy real estate abroad, sir?
– Vietnamese people’s demands for residing and studying in Australia is quite high. The per capital income of not only businessmen but also normal Vietnamese people have increased. Therefore, the number of individual investors who wish to have their children studying and own real estate in this country increase dramatically. This also comes from the habit of buying their own house – the inherent habit of the Vietnamese people.
Price for an apartment in Australia is equivalent to a high-end apartment in Vietnam. With only 450,000-500,000 AUD (equivalent to 8-9 billion VND), a person can own a permanent apartment in the city center.
Based on our observation, real estate prices in Australia tends to increase sustainably, unlike Vietnam – you buy a property in the begin of the year but at the end of the year you sell quickly. According to statistics for the past 30 years, the average increasing prices in Australian real estate is 9-10%; and renting can get extra value on cash flow.
Mr. Hoang Ha Phan – Managing Director of IDJ Group.
– What type of Vietnamese people prefer real estate in Australia?
– It is rich people, most of them are businessmen who are very interested in real estate investment activities here. With these customers, buying a house priced over 10 billion VND is affordable.
Buying properties in Australia is usually have two goals: residing and investing.
For people who want to reside permanently, reunite with their family or get a green card for their children to study abroad, naturalize or permanently reside, they choose this country because this is an English speaking country and other common languages; the environment is ranked as the best in the world. Out of the 10 most livable cities in the world, Australia has four cities. And above all, this country has a comprehensive educational environment in comparison with many other countries.
With investment demand, this is the country with the highest index of economic freedom over the world after Singapore and Hong Kong (China), in which indecies on the legal corridor and asset management are quite good. For example, a Vietnamese buyer purchasing a house here will be permanently owned this house.
– In your opinion, what kind of real estate in Australia is suitable for the Vietnamese?
– Choosing the type of investment product depends on demand of each Vietnamese customer. Most of Vietnamese people invest in real estate here in order to let their children study and live. Therefore, major cities like Melbourne or Sydney are their top priority because these cities are home of many reputable universities such as The University of Melbourne, RMIT University.
Besides, they still keep the habit of buying house in the center, so almost Vietnamese investors choose projects in crowded commercial activity areas.
– How does the process of investing in an Australian property take place?
– Australia is a free country in the world. Real estate investment policies here are applied equally to foreigners who come to work, live and study by the Government.
Australian real estate attracts international investors, including Vietnam.
Process of investing a property in Australia is quite convenient. After selecting the appropriate project, investors only need to pay a deposit of about 5,000 AUD, and 10% of the value of the apartment. This deposit will be kept in a bank account; the owner does not use the money for other reasons but only to carry out the project. In the last 3 months before the completion of the project, investor has to submit the paperwork and pays 90% of the value of the apartment to handover.
– What is your judgement about real estate investment of Vietnamese rich people last time?
– In recent years, many real estate investment projects of businessmen and rich people in Vietnam in some countries are quite successful. Particurlarly, in Australia, there are many individuals spending several million dollars to buy high-end real estate projects in the center of big cities like Melbourne, Sydney, etc.
Real estate in Australia attracts international investors. Melbourne or Sydney are vibrant markets with high growth rates. In 2016, housing prices in Sydney rose 15.5% and in Melbourne increased 13.7%. This trend is predicted to continue to be “hot” in the coming years in the scene of a stable economy and ideal educational environment in this country.
– What do investors pay attention to when invest in Australian real estate?
– From the experience in finding Vietnamese real estate investors for partners in Australia for a long time, I think that investors need to find a project that is suitable for their needs (live, study or business investment) to maximize its assets.
Therefore, for those with children studying in certain locations, it is necessary to buy a house near the university, not to buy in a distant city. If your goal is permanent residency, you can find properties in the community of overseas Vietnamese in order to have a close living environment, easy to do business and create groups to support each other; or invest to rent that house so you need to find projects in the central area with great demands.
In addition, investors should look for professional consultants, avoid the fact that some experts do not thoroughly understand projects and legal corridors in this country. It is preferrable to find local consultants from Australia because they understand the legal corridors and investment habits in this country.
In order to help Vietnamese investors concerning about real estate in Australia, in June, we organized a seminar “Real Estate Investment Opportunity in Melbourne – Australia” in Ha Noi (June 10) and Ho Chi Minh City (June 17).
At the event, IDJ Group and partner from Australia – Avenue One Limited will introduce the West Side Place project – a Melbourne’s premier commercial and residential complex, promising to present a classy living environment and create opportunity for Vietnamese investors. Legal consultants from Australia will answer all questions and concerns of customers attending the conference.
Thanh Thu
Seminar “Real Estate Investment Opportunity in Melbourne – Australia” takes place in: Hanoi (10/6) – Pan Pacific Hotel No. 1 Thanh Nien Street; in HCMC on June 17th – Caravelle Hotel. Hotline: 0916402188
