Why You Should Buy Investment Property In Australia
Looking to diversify your investment profile? Why not consider an investment property? An investment property is a property purchased with the intention of earning a return on investment (ROI) either through rental income, the eventual resale of the home, or both. There’s no doubt that investing in real estate is an excellent financial move, as it provides the opportunity to gain a passive income, which can be an integral step in growing your wealth. You may be wondering where to buy property and which real estate markets are slightly less volatile and therefore carry less risk. A strong contender could be Australia.
Despite the coronavirus (COVID-19) pandemic and subsequent spikes in unemployment rates, Australia’s housing market remained remarkably resilient. Melbourne was the worst affected by the pandemic, with its property market and overall values dropping by roughly 5.6%. Meanwhile, Sydney’s property values fell by 2.9% between April and September 2020; however, they have since recovered. There are also several indicators that point to a promising 2021 for property investors in Australia, including low COVID numbers and increasing consumer confidence.
With the current travel restrictions in place, it is difficult for many to consider investing in Australia. However, there are several expatriates already based in Australia who might be considering buying investment property in Australia. If you’re one of them, this guide breaks down all the reasons you should invest in real estate in Australia.
Investing In Australia Is Relatively Easy
While many countries have stringent restrictions on foreign investment practices, Australia is quite flexible. For instance, as a foreigner, you do not need to purchase a property with a citizen, nor do you need to set up a company in Australia to buy property here. The government approval process, which is conducted by the Foreign Investment Review Board (FIRB), is also very straightforward and simple. Finally, there are special resources you have access to as a foreign that make investment even more feasible (such as a foreigner mortgage).
Australia Is an Incredible Place to Live and Visit
From the sunny beaches of Queensland to the picturesque outback of the Northern Territory (NT), Australia is an incredible destination to both live and go on vacation. When you purchase an investment property in Australia, you’ll get to experience it all for yourself. Not to mention, Australia’s economy is one of the world’s strongest and its political climate is consistently stable.
Future Investment Growth Potential
The Australian real estate market promises a good future potential, which captured global interest recently. Luxury properties have been increasing in demand from C-suites. Experts consider Australia as the new Switzerland because of the freedom that modern workplaces, like remote work settings, provide.
Sydney has demonstrated long-term steady growth, and areas around such as Point Piper real estate which could be a great option for you to check out. Because property value increases, investors can benefit from the capital gain less any capital gains tax (CGT) when you sell a property. There’s a 50% CGT discount for Australian individuals who own a property for 12 months or more, which means that the seller only pays tax on half the asset’s net capital gain.
Local Mortgage Brokers Can Help You
A mortgage broker is a real estate professional who specializes in securing home loans for clients. Having a local mortgage broker in your corner means that you will have a personal advocate representing your needs and interest throughout the loan application process. Local mortgage brokers have expert insight on not only the real estate market but on the area you hope to buy in. For instance, Aussiewide Financial Services is a mortgage broker Geelong-based company that can offer invaluable advice on repayments, fees, and taxes. With their help, you can rest assured you’re getting the best Geelong property for your needs. You’ll also save enough money to live comfortably and secure your future.
Secure your new investment property in Australia by not overlooking the importance of conveyancing. Conveyancing typically begins once the seller accepts your offer. This process is crucial to ensure that the property’s legal title is clean and the property possesses the features and amenities as described by the seller. Conveyancing can help prevent ownership problems in the future.
Conveyancing Brisbane services provide property buyers expert assistance and personalized legal services during the settlement process. A conveyancing service company consists of a team of legal and paralegal experts who can help ensure a smooth investment property transaction.
Clearly, buying an investment property in Australia is an excellent financial decision that could improve your financial wellbeing and ultimately secure your future. When you invest in the land down under, you’ll reap a host of benefits, from a simple investment process to a stunning country to explore. So start browsing properties for sale in Sydney or other regions soon!
