4 Reasons Why Foreign Buyers Should Invest In Australian Property | Century 21

Buying property in Australia has become a popular investment strategy, with Asian buyers in particular being keen on property investment within Australia. Despite some recent government restrictions on foreign buyers, including a ‘ghost’ tax imposed on buyers who leave an investment property vacant, and banks tightening their regulations for foreign investors, there are still many good reasons for overseas buyers to invest in Australian property. 

The Australian property market has been among the world’s most consistent for the past 30 years and provides a low-risk environment for foreign investors. Most Australian property comes with a clear, freehold title and strict standards for construction have been in place for many years. 

There is also a vast variety of quality property to be found around Australia – from luxury new apartments and townhouses to solid brick older homes in central locations, from lower-end properties on the price scale to extreme luxury penthouses and waterside mansions. There is also great potential for investing in commercial property such as office buildings, hotels, shopping centres and warehousing, as well as well-established rural industrial buildings and farms. 

For potential migrants to Australia, investing in property is a wise move as it will provide a financial base in Australia with tax advantages once you become an Australian citizen. 

1. Low interest rates

With the official interest rate at a historic all-time low of 1.5% the Australian dollar could be driven down even further in the foreseeable future. For foreign buyers, a lower dollar means less impact from stamp duty, land tax and other fees that affect them when purchasing property in Australia.

2. A strong economy

Australia’s strong economic outlook, combined with rising property prices in many major cities and some regional areas, continues to assure foreign buyers of a safe and secure environment in which to invest. 

3. Infrastructure development on the rise

The 2017 Federal Budget, announced in May, included funding for major infrastructure projects across Australia, including large road, rail and airport projects. Such projects invariably attract development to the regions where they are being constructed, attract a higher population and see rising property prices. No doubt, many foreign investors will be looking to these regions for prospective property investments. 

4. Increasing population

Australia’s increasing population, especially in major cities such as Sydney and Melbourne, is putting pressure on property prices and creating a rising demand for new housing. Sydney alone is expected to increase in population from almost five million people to more than seven million people over the next two decades. The city will need to expand by at least another 726,000 new dwellings by 2036 in order to absorb this burgeoning population. 

In short, for foreign buyers investing in Australian property offers the following advantages:

  • A property market with low volatility
  • A variety of taxation advantages
  • The ability to leverage capital growth to build a strong property portfolio
  • Consistent, long-term rental returns
  • Increasing demand for rental properties pushing up rental returns in many regions
  • The ability to increase rents at market rates 

To learn more about how to go about buying property in Australia and the property purchasing process as a foreign investor, read our comprehensive guide here. 

At Century 21, our agents have the experience to guide you through the entire property purchasing process, expertly manage your portfolio and make your dream of investing in Australian property a safe, secure and seamless process. Century 21 has one of the most comprehensive listings of properties in Australia and is the perfect place to begin your search. Get in touch with us today!

Posted by Administrator on 05/07/2017 at 3:52 PM | Categories:

2 Comments

Harry Watson

Harry Watson wrote on 25/07/2017 7:53 PM

Wonderful Blog Post…Thank you for sharing this information.
Marek Stachura

Marek Stachura wrote on 28/10/2017 6:52 PM

Well Explained Blog post! According to the researchers, Australian property has increased in value with 11.4% increase per annul despite a succession of wars, disasters, recessions, and crises.

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