Overseas Investor Unit Buyers

Date Added: 24/01/2017 by Rod Askew - RnR Strata Sales

I guess you need to have been living on another planet if you haven’t heard about the proliferation of overseas investor unit buyers.

It’s no secret that Asian buyers, particularly from China, have been buying up vast numbers of new units on the Eastern seaboard of Oz.

The Australian government and banks have put the brakes on this buying to some extent, but developers are telling us that the majority of new sales are still coming from Asia.

 

How does this affect us in the management rights industry?

Firstly, why are Asians buying large numbers of units here?

The response we get from most of the marketers is that it allows them to get some money out of their country.  Also, Australia offers quite good returns on investment and has a strong, safe economy.

Secondly,what are the positives and pitfalls of all these Asian buyers?

The positive factor is that most are investor buyers wanting to rent their new units.  This is good news for the managers.

Negatives include communication, as many overseas investors don’t speak or write English.  Some of the Asian real estate marketers want to keep the rentals themselves in competition with the manager.

With a new development where there are a majority of Asian investor buyers, the secret is communication with the buyers as early as possible in the process to cement your services.  Many buyers are not told there will be an onsite rental manager when they sign the contract for a unit. 

The developer’s involvement in this communication is critical to the new manager getting the rentals.  Newsletters, direct correspondence and phone contact are all necessary if the manager is to achieve maximum letting pool numbers at settlement.

Off the plan still represents the best value for money when buying a management rights business. Just don’t rush in blindly without speaking to an expert who deals with these every day.

RnR Strata has that expertise to assist you.


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