High Rental Yield, Price Appreciation, Stable Growth, Make Sydney an Ideal Realty Investment Option: Haansal Estate

High rental yield, price appreciation, stable growth,  make sydney an ideal realty investment option, says Sumiit Gupta, the founder of Haansal Estate Pty Ltd., in an exclusive conversation with Realty & More. Following are the excerpts of his chat with r&m: 

What has been your inspiration behind Haansal Estate Pty Ltd and the journey that led you to establish this innovative real estate startup?

My inspiration stems from a desire to revolutionize the real estate industry, particularly in Sydney. Having observed the gaps and inefficiencies in the traditional real estate model, I envisioned a platform that prioritizes transparency, efficiency, and client satisfaction. The journey leading to the establishment of Haansal Estate involved a deep understanding of market dynamics, leveraging technological advancements, and a commitment to ethical business practices.

Your academic background spans commerce, IT, and computer science. How have these diverse disciplines influenced your approach to revolutionizing the real estate industry?

Drawing from experiences across diverse industries and global landscapes, I aim to set new standards of excellence in real estate sales. Through a focus on continuous learning, I strive to drive positive change and foster sustainable growth in the real estate sector.

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With a blend of business acumen and technological expertise, I leverage innovative solutions to address industry challenges. This multidisciplinary perspective allows me to integrate strategic business practices into Haansal Estate’s operations

Your company offers unique solutions for students pursuing higher education in Australia. Can you share more details about this initiative and how it benefits both students and their parents?

The growing community of Indian students in Australia sees strategic real estate investments as a pathway to secure their future. Sydney’s soaring rental prices, with a 43% increase in median weekly asking rents from 2022 to 2024, present a lucrative opportunity for students, their parents and investors. With rental yields surpassing those in India, investing in Sydney’s real estate not only provides a robust financial foundation but also enhances their stay in the continent. For parents, this investment offers peace of mind knowing their children have secure accommodation, while also potentially yielding long-term returns.

What are the major advantages for investors in investing in Australian real estate, especially in Sydney, compared to the local market and other international markets like Dubai?

Investing in Australian real estate, particularly in Sydney, offers distinct advantages over both the local Indian market and international markets like Dubai.

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• Stable Growth and Consistent Historical Trend: Sydney’s property market has shown considerable growth over the past 25 years, unlike Dubai, which experienced negative growth for 6-7 years in previous decade. This consistent trend provides investors with confidence in the stability of the market.
• Superior Rental Returns: Sydney boasts better rental returns compared to both the local Indian market and international markets like Dubai. Rental yields in Sydney average around 4.3%, with some suburbs achieving even higher returns exceeding 6%, significantly outperforming Indian markets.

Investing in Sydney’s real estate market presents investors with a compelling opportunity due to its stable growth, superior rental returns, and secure environment compared to both the local Indian market and international markets like Dubai.

Australia is going through a housing crisis. Why and how did it happened? What are advantages/opportunities for savvy investors?

Australia is currently grappling with a housing crisis primarily due to a surge in population driven by increased immigration. In response to the negative impact of COVID-19 on population growth and GDP, the Australian government implemented strategies to boost immigration levels, aiming for 235 thousand immigrants annually for the next four decades. However, this target was exceeded over the past three years, with over a million immigrants arriving between 2021 and 2023. Consequently, the country faces a staggering demand for housing, estimated to have over 300 thousand new homes to accommodate the influx.

For savvy investors, this crisis presents a unique opportunity. With high demand and limited supply, the Australian housing market offers promising prospects. The shortage of manpower and resources means that meeting housing demand will be a challenge for the next many years. This imbalance has led to significant increases in rental prices across major capital cities, with double-digit growth observed over the past few years.

By conducting thorough research and employing strategic investment approaches, investors can capitalize on this situation. Positive cash flow properties are attainable, and the potential for double-digit returns on investment is considerable. Thus, investing in the Australian housing market at this juncture could prove to be highly lucrative for discerning investors.

Why is the Sydney real estate market a potent choice?

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The Sydney real estate market presents a potent choice for investors due to its remarkable growth trajectory and stable environment. Over the past decade, Sydney dwelling prices have surged by an average of 7.1% annually, with the median property prices nearly doubling, showcasing a robust upward trend. Forecasts indicate further growth, with experts projecting a 23% increase in dwelling prices over the next three years.

Sydney’s stability is underpinned by several factors, including Australia’s robust economy, strong job growth, and a stable political climate. Its status as a global financial hub and gateway to Asia attracts businesses and migrants, driving sustained demand for housing. 

Moreover, investors stand to reap substantial returns in Sydney, with the potential for double-digit ROI. With the right strategy and suburb selection, investors can achieve returns of up to 30% or even higher per annum on their initial investment, making Sydney an enticing destination for those seeking significant financial gains.

Beyond financial returns, Sydney’s allure lies in its world-class lifestyle, characterized by stunning beaches, vibrant culture, and a diverse population. This exceptional quality of life has earned Sydney recognition as the fourth most liveable city globally, according to the Economist Intelligence Unit’s Global Liveability Index for 2023. Thus, investing in the Sydney real estate market offers not only lucrative financial prospects but also the opportunity to enjoy an unparalleled lifestyle experience.

What are the major disparities between the real estate markets in Sydney and India, considering factors such as net worth, industry organization, legal framework, and lifestyle appeal?

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1. Net Worth: The total residential market net worth in Australia, particularly in cities like Sydney, is significantly higher compared to India. Australia’s market has surpassed 10 trillion dollars, while India’s is around 1 trillion AUD.

2. Returns: Australian real estate offers more stable growth and higher rental returns compared to India. The consistency and profitability of investments tend to be better in Australia.

3. Organized and Regulated Industry: The real estate market in Australia boasts a high level of organization and regulation, with licensed professionals operating across all sectors. In contrast, India’s real estate industry often lacks such comprehensive organization and regulation.

4. Security and Law: Australia has robust laws protecting both property owners and tenants, offering more transparency and security compared to India. Property owners have more say, and the legal framework provides clarity for all parties involved.

5. Lifestyle: Sydney and Melbourne are often ranked among the top cities to live in globally, with high standards of living and excellent air quality. This attractive lifestyle factor, along with the country’s stability, makes it appealing for international buyers from all over the world.

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How does Haansal Estate streamline the process for clients from India seeking to purchase property in Australia?

• Requirement Gathering and Analysis: Haansal Estate begins by gathering information from the buyer regarding their budget, preferences, objectives, and loan requirements.
• Prospective Property Evaluation: Then shortlist top property options from a pool of over 1000 properties, dealing exclusively with established builders and developers to ensure confidence in the projects.
• Suburb Research and Presentation: Providing relevant information about the location and suburb, including future prospects, to offer peace of mind before investment.
• Organizing Meetings with Solicitors, Brokers, etc.: Haansal Estate works with established organizations across various sectors, facilitating meetings between buyers and the right professionals to assist them effectively.
• Formalizing Sale: Assisting clients with legal and financial formalities, ensuring a smooth closing process and allowing clients to enjoy future financial freedom and peace of mind.

Overall, Haansal Estate offers a comprehensive solution tailored to the needs of clients from India looking to invest in Australian real estate, leveraging their expertise and network to facilitate a successful property acquisition process.

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