Real Estate Market in Australia: Why Invest?
Investing in Real Estate is the ideal step towards future earnings. Property investments may provide steady returns and capital appreciation when resale or renovation occurs.
However, you must wisely select the property’s location, building features, and potential growth before proceeding with the purchase. Therefore, it is advisable to invest in a property with potential growth and return on investment.
Being in the Asia Pacific region, Australia is a fast-growing country, and it has a high population rate. Also, it is amongst the world’s multicultural countries, with a substantial immigration rate increase each year. The country’s population growth rate creates an upward trend in residential property demand and forms the ideal environment for real estate property investments.
Below are some reasons why you should consider investing in the Australian property market:
- High Population Growth
When planning to invest in real estate, one of the points you should consider is the population growth rate. Australia has high population growth, especially in cities such as Sydney and Melbourne. Researches revealed that it is not expected a slow down in the population growth any time soon.Investing in these cities is an excellent opportunity for property investors who look forward to capital and rental growth continuity. Australian properties, therefore, can be classified as a long-time investment opportunity.
- Australia is one of the Most Consistent Property Market in the World
In the past three decades, Australia has seen a 7% return on investment per annum.
Return on Investment consistency makes Australia the best country to invest in real estate property; therefore, investors should include it in their search options.
- Steady Rental Yield
Australian property market maintains a steady rental yield that makes it a great location to include in your investment portfolio plan under your long-term asset investments.
- Foreigners can Own Freehold Properties
Contrary to some other countries, Australia does not deny the ownership of freehold properties to foreigners. As a foreigner, you have the chance of owning a property in Australia as the locals do. An investment in Australian property will definitely offer high returns in the long run.
- Resistance to Downward Trends
Over the years, the Australian property market has shown the ability to resist downward trends. If you invest in the Australian real estate market, you will be confident of holding on to your investment for a long time. Having low volatility, the Australian property market has proven to be the best investment plan compared to other property markets in the World.
- Australia is a Perfect Place to Live
Australia boasts of its multicultural cities and natural beauties that trap most people’s impressions internationally. Its conducive living environment supports migration, which raises its population.With the increasing number of migration and population, respectively, Australia’s property prices continue to rise with time. Therefore, investors have an assurance of investment growth by investing in Australian property.
- Minimal Instability
Australia has minimal instability as far as political, social, and economic aspects are concerned. That said, growth in the country is evident, and you have no worries as you invest in its properties.
- No Restricted Laws for foreigners in Australia
Most countries impose restrictive laws that discourage foreign investors. Other countries have banking regulations that discourage foreign investors. However, Australia does not have such restrictive laws, and investing there is considered easy comparing to other countries.
- Government Approval is Easy for Foreign Investors
The Australian government has a straightforward legislative framework concerning foreign investments in properties. With the payment of some additional taxes as a foreign property investor, you acquire government approval.As a foreign investor, you can enjoy tax deductions by professional accountants’ consultation in Australia. Your submission to the Australian property authorities will be approved within 30 days, which helps you execute your investment plan faster.
- Overseas Investors are Familiar with the Australian Legal System
Most foreign investors understand the Australian legal system since it is based on the UK common law system. As an investor, you will have an easy time investing in Australian properties as much as you understand its legal system.
- Strong Consumer Protection
Australian legislation offers strong and effective consumer protection. The National Consumer Credit Protection Act 2009 ensures that Australian consumers are protected, creating a conducive property investment environment.
- Existence of Specialist Mortgage Brokers
You will find specialist mortgage brokers in Australia who will help you qualify for a foreign mortgage. You will thus have a stress-free experience investing in Australian properties with the professional mortgage brokers’ help.
- No Need of Setting up a company
Most countries will only allow you to invest as a foreigner after you set up a company there. In other cases, you must buy a property with a citizen to become an investor in that country. However, in Australia, you can invest solely without setting up a company or buying a property with an Australian citizen.
- Consistent Capital Growth
Over the last decade, Australian property has registered consistent capital growth. Property prices double approximately every 7 to 10 years. That gives confidence to any property investor who wishes to invest in Australian property.
- No Speculations from Foreign Investors
Most overseas markets suffer significant crashes due to speculations from foreign investors. That results in a drop in housing prices, which leads to foreign investors incurring huge losses. Such scenarios are unheard of in Australia since most housing markets here are owner-occupied when investors in other countries are experiencing a crisis, property prices in Australia increase.