Why Buy an Australian Property
Australia is enjoying one of it's most successful economic periods and the property market has benefited greatly from this.
With steady growth in GDP (approx 2 to 3%pa), traditionally low interest rates and it's lowest unemployment rate for decades, the safe investment environment is expected to continue.
There are many reasons why to buy an Australian Property, they include:
Strong Investment Performance
Australia has been one of the worlds most consistent Property markets over the past 30 years, providing secure returns in excess of 7%pa over this period, and has experienced fewer years of decline than almost any other international property market.
When this is coupled with the fact that the Australian Property market has shown an ability to resist downward shifts in prices, this allows investors to hold property over the long term with great confidence.
The Australian property market is underpinned by a strong and regular inflow of migrants and a stable economic base that further ensures that the demand for Australian property continues to grow from both the influx of new arrivals and the increasing demand of the local market for quality Australian property.
A stable rental market also ensures that investors can readily obtain tenants for their property, essential for the long-term success of any investor.
Safe Legal Structure
Almost all property offered for sale in Australia comes with clear and distinct freehold title. The legal system is weighted heavily to protect the interests off all landowners and does not discriminate against foreign owners in any way.
Furthermore, the strong consumer laws that govern the standards of construction will ensure you can safely rely on developers delivering you a property built to the most stringent specifications, that will look as new for many years to come. In Australia, the building industry is a well respected and highly skilled profession that takes great pride in the quality of its workmanship.
The laws protecting the interests of landlords are very clear and ensure that you are always safeguarded against issues of squatters, of delinquent tenants to further enhance your investment through the legal system.
Future Migration to Australia
If you are contemplating migration to Australia at some future date, then acquiring property prior to your arrival is indeed beneficial.
Not only will it allow you to possibly acquire your future residence at "today's" price rather than the increased value when you actually relocate, but it will provide you with a strong financial platform upon your arrival to build a more secure life in your new country.
It may also provide you with distinct tax planning advantages to reduce the impact of Australian taxation when you become an Australian resident.
Future Expatriate Return to Australia
As an Australian expatriate it is very likely that one day you will return to Australia to live and work.
Acquiring property during your time, as an expatriate is far more affordable due to the improved financial circumstances most expatriates find themselves in. This coupled with the fact that you are also going to have the benefit of being a landlord and collecting rent, usually means that you can afford a substantially better property than you could have afforded whilst living in Australia.
This may mean that you can return to live in a better suburb than you ever possibly thought, acquired in a much more affordable way and with the further benefit of substantial tax benefits available to you whilst living abroad.
Accommodation during children's study in Australia
If you are contemplating having your children educated in Australia, be it for High School or University, then purchasing an Australian Property for them to live in during the period of study can provide many benefits.
The cost saving of not paying rent plus the growth in value of the property can in fact recover all the cost of the education, giving you a Free degree for your child.
Tax planning benefits for Investors, Expatriates & Intended
Migrants
The Australian tax system is extremely friendly for Australian property investors based abroad.
It is indeed possible to invest "Tax Free" when you structure your purchase with a prudent level of borrowing, and take advantage of the significant tax incentives offered to you by the Australian Government.
For investors, this can mean a safe tax-free investment in Australia.
For Expatriates and Intended migrants, these tax incentives can be built up to offset future Australian income such as salary or retirement income, ensuring a tax free retirement or significant tax free earning period when you do relocate or return to Australia.
Our Free Property Tax Estimator will quickly demonstrate the taxation and financial advantages of being an Offshore based Australian Property Investor.
Whatever your motivation for considering Australian Property investment, I am sure that when you compare the quality, variety and safety of Australia to any other property market, it will stand tall to justify your decision to include Australian property as part of your portfolio.
