Property Investment Market

A summary of the Australian property investment market...

The property investment market in Australia has always been big business, and is actively encouraged by the government for its high growth potential. It typically remains a strong industry, more specifically in the renting sector, which sees a number of tax benefits that other countries do not get.

Growth

The property investment market boasts high capital growth, particularly when investing in off the plan buildings in large cities like Sydney or Melbourne, as well as on the coast where new property demand is on the rise. Annual returns have been reported at between 30.6 to 42 percent in the Perth region. Townhouses and apartments are the most sought after properties in the country.

The economic growth in Australia is higher than both the United Kingdom and the United States, with a current Gross Domestic Product that outranks the UK, Germany and France. In Australia’s bigger cities there is low unemployment, and only about 5 percent nationally, which is strong during the world’s sagging economic climate. As well as having strong national demand for property, Australia’s property investment market sees one of the highest rates of emigration. All new citizens need homes!

Advantages

Although many residents of Australia take its lifestyle for granted and look for rising markets elsewhere, the country reports many property investment advantages that other countries cannot offer. If you do not reside in Australia it should be high on your overseas investment property list.

The weather in the country is hot all year round giving you a great initial selling point to those emigrating; this goes without mentioning the natural beauty of the country. The foreign exchange rate is very strong, meaning you’ll get more bang for your buck investing in Australia. There is a strong market for renting as property prices have seen a rise; this means long term investments will be strong. Because the native language is English, business dealings could not be easier.

Financing

Due to the strength of the property investment market and the economy as a whole, Australia has a very effective mortgage system. You can take on repayment or endowment mortgage loans from several lenders to fund up to 80 percent of the property’s purchase price, with fixed or variable interest rates open to discussion. Also a lot of off the plan properties in the AU offer payment plans over pre-agreed periods.

Conclusion

Now has never been a better time to get in to the property investment market in Australia, or to expand your portfolio overseas to the country.