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  • Profile photo of Shah KShah K
    Member
    @shah-k
    Join Date: 2010
    Post Count: 7
    May 4, 2010 - 5:23 pm

    I think the real gains will be made in middle income housing, as the Chinese become more prosperous and move into middle-class neighbourhoods. Also there will be potential gains to be made in low income housing in urban areas. This is because of the massive amount of internal migration in China moving from poor rural areas to find job opportunities in the ever expanding urban areas. There is a shortage of supply of labour in many urban areas and this is drawing in rural migrants who will need housing.

    I think there is a already an oversupply of luxury apartments packaged for overseas investors. These luxury apartments have a very small target market and are mainly aimed at foreign nationals and wealthy chinese residents.

    Nonetheless, I would err on the side of caution when considering China as an investment opportunity for the average investor. Research and due diligence is key. Again, quality of the construction will remain a issue. You must have good contacts in China especially when buying in neighbourhoods unchartered by foreign investors.

    Profile photo of Shah KShah K
    Member
    @shah-k
    Join Date: 2010
    Post Count: 7
    April 23, 2010 - 12:45 pm
    basbog wrote:
    Shah

    Yes all utilities are included in the rent
    I also rent to fulltime workers and there are always heaps of people waiting
    I have not had any internationals travel home in the holidays they tend to stay, I have a girl from KL who has been in the house for 3 yrs

    Barry

    Thanks for the reply Barry. Are the working tenants on individual contracts? Are there additional requirements for such rentals (e.g. approval from the local authority, licensing, etc?)

    Profile photo of Shah KShah K
    Member
    @shah-k
    Join Date: 2010
    Post Count: 7
    April 23, 2010 - 12:35 pm

    A buy-to-let mortgage is a type of UK mortgage specially designed for purchasing properties to rent. The criteria is based on the LTV and the percentage of rent to mortgage payment ratio (rental coverage). The interest rates are slightly higher than other residential mortgage types and you will have to pay a higher deposit.

    Julie – This type mortgage should be easier to obtain for non-residents and is based primarily on rental income rather than personal income.

    Profile photo of Shah KShah K
    Member
    @shah-k
    Join Date: 2010
    Post Count: 7
    April 20, 2010 - 7:48 pm
    basbog wrote:
    Hi
    I run student acc in Adelaide and yes they are a great way of increasing the returns, however I noted on your intro you said you are here for a few months and I would not have this type of accommodation if I did not live in the same city. It is a bit more hands on than regular housing and if you have it managed by an agent it would swallow up a lot of your returns

    Barry

    Hi Barry,

    I agree student housing can be very time consuming. I'm coming over to Oz with a view to settle in the near future. I'm just looking at the property market to determine if I could do similar things i've done elsewhere.

    Do you include any bills for your properties or do the students pay all bills?
    Do face much competition from the Universities building their own housing facilities?
    Do students stay for the full 12 months or just nine months?

    Profile photo of Shah KShah K
    Member
    @shah-k
    Join Date: 2010
    Post Count: 7
    April 20, 2010 - 7:42 pm
    chriscarman wrote:
    i recently had to turn down what i considered an excellent opportunity, purely because the timing was wrong for me :(

    There was a duplex for sale in Annerley (Brisbane) which in anyones language has to be a suburb with good expected capital growth. Its close to universities, transport, large shopping centres etc, in short a great spot for students etc

    Each duplex currently had 3 bedrooms, but with the addition of one wall in each duplex, it would have given 3 x 1 bed rooms, and 1 x 2 bed rooms in each duplex 

    Now the most students (i believe) you can have in a house is 5 (else you have to jump through all the legislative hoops relating to boarding houses), but this was a property deal with 2 duplex's so you avoided that little issue

    So now i could sleep 10 legally in a property at Annerley…
     
    Cost of House $650,000.00
    Expected weekly rent $1400.00

    even after all the management costs, allowances for maintenance etc, the thing was hugely cash flow positive AND in a big city (for the cap growth)

    I dont see the issue with student accommodation personally, its maximising the properties earning potential :)

    Hi Chris,

    I agree it's about maximising rental potential. The yields are good and similar to my student properties in the UK.

    What is regarded as 'boarding houses' in Aus?

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