The real estate industry has always been a popular destination for franchisees looking to maximize their initial outlay.
Property prices in Australia were consistently growing up until 2017, with low interest rates combining with high demand in urban hubs and tax incentives, which helped to causea booming property market.
The market has settled since, but nonetheless, there are still plenty of people buying property in Australia and thus, it is an area that can be very lucrative for investors.
Here are a few facts and trends about the industry.
- According to IBISWorld, the real estate franchise industry is a multi-billion-dollar sector which employs over 65,000 people.
- Properties in Sydney and Melbourne account for 40 percent of the total number of properties in Australia, and 60 percent in terms of value.
- Sydney is the biggest and the most expensive city in Australia.
- In 2018, the median house prices in Sydney dropped by around 6.5 percent over the year, compared to 2017.
- The median price for a property in Sydney at the start of 2019 was $840,000, $665,000 in Melbourne and $490,000 in Brisbane.
Franchise Versus Independent Business Opportunities
Deciding to invest is a big step, and the first decision to make is whether to start an independent business or buy into an established franchise. Starting a business of your own can be exciting, and you have total control over its growth from the beginning. You're taking on extra risk with this decision, however, since there's no roadmap to follow, and a lot of your early efforts will be spent reinventing the wheel to find your path to success.
Buying into a franchise is different, and a lot of entrepreneurs prefer it because of the lower risk and potential for high rewards. Franchises come with a tested blueprint for success along with great brand recognition and an existing customer base or client list. A lot of franchises also have a strong network of support for new franchisees with financing assistance, insider advice and lots of upgrades and training options.
In the end, which you choose is your own decision, but business owners at every level of experience look to franchise opportunities wherever they can to maximize their chances of success and get their business off the ground fast.
Which Is Right for You?
Before deciding which business model is best for you, it's worth taking an inventory of your skills and abilities as well as determining what you want to get out of your business. People who value creative freedom over time-tested approaches might find starting their own business more attractive. New startups can also appeal to investors who have long time horizons and are willing to work for years before their business operates in the black.
Franchise businesses, on the other hand, can be much more attractive to people who want to dive in and start running at a profit much sooner. The advice, support, and established network a typical franchise offers can potentially shave years off of most businesses' rough early period and cushion the inevitable bumps along the way for new companies. They're appealing to novice investors, many of whom want to keep it simple and adopt a proven framework from the first day. Franchises are also likely to attract experienced investors who want a lower-demand business to operate alongside their other ventures or would like to take a little of the pressure off for their next investment.
Benefits of Buying a Real Estate & Property Franchise in Australia
The property industry is one of the most promising sectors of the Australian economy. With plenty of green field development opportunities, lots of room to expand in the urban areas of the country, and extremely positive tax and finance structures to encourage investments in real estate, the time might never have been better to get started in the Australian real estate market. Australia's growing population and industrial demand for expanding space also make the commercial real estate market a hot place to get in on a promising franchise business.
How Franchise Direct Can Help You Get Started
Franchise Direct is an informative and reliable platform that helps investors in 15 countries find the franchise opportunities they've been searching for. With up-to-date information about the real estate business in Australia, our innovative approach has connected thousands of entrepreneurs with real estate franchises for sale in some of the hottest markets in Australia. Check out our blog to learn more and to stay on top of the latest from real estate experts near you.
If you would like to hear more about real estate & property franchise opportunities in Australia, search Franchise Direct now.