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Australia is enjoying one of its most successful economic periods and the property market has benefited greatly from this. With a steady growth in GDP (approximately 2% - 3% pa), traditionally low interest rates and its lowest unemployment rate for decades, the safe investment environment is expected to continue.
There are many reasons why you should consider buying an Australian Property, including the following:
Strong Investment Performance
Australia has been one of the world’s most consistent property markets over the past 30 years, providing secure returns in excess of 7% per annum over this period. The Australian property market has also experienced fewer years of decline than almost any other international property market.
When 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 a 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.
If you are renting out your property, 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. It is advised that you speak with an accountant or financial adviser for more details.
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.
You will also have the benefit of being a landlord and collect rent, which 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 the term of your child’s education in Australia
If you are contemplating having your children educated in Australia, whether it is 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 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.
Before buying a property in Australia, we strongly recommend that you speak with one of our experienced consultants and they can run through with you the taxation and financial advantages of being an offshore-based Australian property investor.
About Intellichoice
Intellichoice are experienced mortgage brokers, with an aim to help everyone achieve their financial dreams. If you are thinking of purchasing an investment property, we recommend that you look at buying property in Australia. We have a wide range of properties available to suit your needs and budget. We can also assist with finance for foreign investors, currency exchange, insurance and more.
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