What in the world will $ 1 million buy you in 2021
As home prices in Australia continue to rise, Ray White chief economist Nerida Conisbee wondered if you could find better value for money in one of your favorite vacation destinations in a prize of $ 1 million.
She said that while Australians are obsessed with real estate and love to invest, we tend to stay pretty close to home when it comes to building a real estate portfolio.
Most of the places we invest in are Australia, and apart from being nervous about buying from overseas, we also can’t buy from many countries.
For example, in Thailand, foreigners can own an apartment but owning freehold land is prohibited.
New Zealand has completely banned foreign buyers.
Elsewhere, there are far fewer restrictions.
In the UK anyone can buy, even if you don’t live there. It’s a similar situation in the United States.
In Cyprus they will even throw away a passport, although you have to spend at least € 300,000 on a new government approved development.
The last challenge is to obtain funding.
“Australian banks are unwilling to finance overseas residential property purchases,” Ms. Conisbee said.
“And it is difficult to obtain financing from foreign banks. If you want this Parisian apartment, maybe you better have some cash on hand.
Ms Conisbee said if buyers have the financial means and aren’t afraid to buy overseas, a million dollar budget could make properties attractive.
She said it was difficult to compare prices globally, but per square meter, Turkey is the cheapest country to buy, while Switzerland and Luxembourg are the most expensive.
“But in the UK, cities like London would have neighborhoods that are potentially much more expensive than Switzerland,” she said.
“Considering the challenges of comparing prices, I instead chose to look at some well-known areas to see what is available for around $ 1 million and compare what you would get in Australia.
“This will allow you to see exactly what you are getting for your money. “
A room in a global city
Ms Conisbee said the Australian dollar is quite weak at the moment and a million Australian dollars will only net you around 715,000 US dollars, 525,000 pounds sterling or 610,000 euros.
If you dream of New York, London or Paris, that’s enough to buy you a one bedroom and one bathroom apartment near Central Park, near the City of London or near the Seine.
Ms Conisbee said this was roughly similar to the median for our most global city, Sydney, where the median of an apartment is $ 960,000 and could get you a unit on the outskirts of Sydney’s CBD, like a one bedroom Rosebery unit.
If you want a comparatively cheaper option, you can look at Melbourne’s CBD where the median for an apartment is $ 460,000.
Family home in the “most livable city”
If a one-bedroom apartment isn’t appealing, then living in America’s nicest city can.
Ms Conisbee said Austin, Texas is ranked as one of the best places to live and the Highland neighborhood is one of its best suburbs.
“For A $ 1 million you are looking at a nice house in a big block, like this one on Northcrest Boulevard,” she said.
“In the UK, in one of Edinburgh’s best suburbs, West End, you can also buy a three bedroom house.”
Ms Conisbee said that in Australia you are unlikely to travel to many of our more expensive suburbs, which are currently around A $ 3 million, but you could buy in a beautiful city of Adelaide. , where Henley Beach just hit the median of $ 1 million.
“In Melbourne, the booming interior west could also appeal with Footscray hitting that price point now,” she said.
A seaside getaway
If you’re looking to buy in Asia, Ms Conisbee said a beachfront vacation home would be good value for money, but buyers should assess what they’re allowed to buy in each country.
“A million Australian dollars is equivalent to approximately 24 million Thai baht. In Phuket you can get a luxury hillside villa for that price, ”she said.
“In Indonesia, that same million will get 10,405 million rupees, which will give you an equally magnificent villa near Canggu beach.
“In Australia you can certainly buy in a seaside suburb, but you’re unlikely to get a new luxury villa for the price.
“Pelican Waters on the Sunshine Coast recently hit this price point and the weather should be just as good. ”
A country house
Ms Conisbee said there were some nice properties in rural areas in Europe and Australia, the main difference being that in Europe you can afford a medieval tower.
“In Australia you would get something that big but certainly not that historic,” she said.
“I don’t know much about Auvergne, a predominantly rural French region, but for A $ 1 million you can get something very different, like this historic stone mansion with its own tower.
“For $ 1 million in Australia, you could get into the interior parts of northern New South Wales. Mullumbimby currently has a median of $ 988,000.
Near Melbourne, Ms Conisbee said Macedonia recently crossed the median mark of $ 1 million.