Buyers are getting antsy about China's property market.And that's putting an extra strain on the country's real estate sector, which could mean an even bigger squeeze for investors.Here's what you need to know.Read more: China is now the world's biggest consumer of foreign real estate, with almost $300bn of purchases in 2015, up from $180bn in 2014.There are now more than 12m homes listed in the c...
Aussie real estate agency has found a new way to save on rent.
The Sydney Real Estate Group said it will no longer be charging a percentage on rents, but instead will use a «value based» model that relies on the amount of equity in the property.
«We think that this model is more fair to the property owners than the traditional market model, where the more equity you have, the less it will cost you to get the property,» said managing director of Sydney Real & Real Estate, Scott Haggerty.
The agency will use its own algorithms to determine the value of the property and then determine the amount it will rent.
«For example, in Sydney, if you own five apartments in a market that’s only available for three months of the year, we will use the value based model to determine how much we will rent it for,» Mr Haggery said.
«So if you’re a property owner who rents for a couple of months a year and then wants to sell, we’ll rent it out for a much lower rate, because we don’t know the value.»
It’s just like you can take the rent you paid for the apartment and take the cost of the market and divide it by three and it’ll tell you how much the market is going to cost you.
«The Sydney Real estate Group said the model is similar to what it does in Victoria, where it uses its own valuation model to price its properties.»
Victoria has an average rent of $1,600 per week and we will be pricing our properties for this,» Mr Jorgensen said.
He said the agency has already seen a 20 per cent increase in the number of properties it is bidding on, and is looking at other properties in Sydney.»
The biggest increase in property prices has been in Sydney because it’s been so much more open and affordable in the last few years,» he said.
But he said the real estate industry was still in a «crisis» and needed to focus on growing.»
What I’m looking forward to is more people coming in and starting to make money because they’re starting to understand that we can do this in Australia,» he added.»
I’m hoping that in the next two to three years we will have a lot more people come in, start to make a real impact.
«Mr Jorgenson said the company was also exploring new methods to attract and retain staff.»
As the industry matures, we have to do what we can to keep attracting people and to keep doing the right thing,» he told AM.