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Monday, October 23, 2017

Is It Worth Buying Property in Australia?

by Delan Cooper (writer), , July 29, 2016

Credit: Pixabay
Property Investment

Australia is a country with high potentials in real estate and property investment; it has so many prime locations to invest whether for residential apartments or commercial properties.

The high economic growth in Australia makes the real estate and property investments are a boon, the industry has experienced tremendous group in recent times. The year 2013 was characterized by high housing demand in the country, the prices and values of property went up, the demand for a good house in the country is still increasing almost annually. The prices also have gone up with the rentals becoming higher in the same rate. Retirement villages are a popular choice for many Australians. For an investor who want to explore the sector, the opportunities are available but at a higher fee than years before. The eight major cities of the country have experienced property price soaring over the last four years, Sydney is one city with a high record of increase in property value since 2013 with 14.3%, this happened because of inflation though the government is cushioning the impact.

Best Locations:

  • Real estate investments in the country has been known to be valuable in fast paced cities of the country, Sydney is one such ideal place to invest for investors who are looking for returns, the city experiences high demands and housed fetches more.
  • Melbourne city is another place which will give the investor high returns on their property, the city is just behind Sydney as far as demand is concerned.
  • Perth is also ranged in the same group as the above cities, there is a big influx of immigrants flocking there causing the property market to surge, the cities are well infrastructural making investment ideal for higher returns.
  • There are other cities like Brisbane which is also ideal, other coastal cities like Newcastle and Gee-long are ideal for their proximity to holiday destinations, the reason makes real estate demand to be high in such regions.


High yields capital:

  • Housing and property investment in Australia often attracts very high yields on the capital invested, this happens because of favorable factors in the country.
  • The rentals of houses and other properties are among the highest internationally, the return rate estimated between 3.5 to 5%, this in any standard is among the highest in the world.
  • The place matters a lot when investing there, the highest place in property value is Sydney, Perth, Brisbane, and Melbourne, and there are other slightly interior places which can offer a slightly lower value.
  • The migration has made the real estate investment to soar, the capital reason is been growing in the same strength every year.


Property Taxes:

  • For any investment on real estate and property in the country, there are stipulated taxes to be paid for every such venture; taxes are deemed high as compared to other countries.
  • It’s a good idea to do a thorough research about government taxes which such projects will attract, the taxes are generally higher and varies from one place to another.
  • Property in Australia attracts a Stamp Duty tax of about 2.5 to 3% of the total amount of purchase, the amount will depend on the place you have purchased the property.
  • There is a likeliness of an annual taxation for a property of a certain amount of money, the rates varies depending on the place, plus cities suburbs attracts more or commercial regions.
  • The rental income of every property is highly taxed, the taxes are even high for non-residence at about 29 to 45% which is very high, and this makes the rentals to be high in the country.


Rental Incomes:

  • Average the rental incomes are very good in Australia, the rental rates varies from city to city and depends on many factors.
  • The rental rates in Sydney for instance goes for about $2,500 for 1 bedroom apartment and $7,300 for a three to 4 bedroom apartment in the city.
  • The buying amount of the same units in the city is estimated to go for $500,000 and $ 2 million respectively, the rates are very high compared to US or UK.
  • The returns on capital is considerably good even if the purchase price is high, the return on investment is an annual estimates of between 4.43% to 6.01%.


Neutral Tenancy Laws:

  • The law governing property letting in the country is very flexible and not complicated; this adds value to those investing in real estate and property.
  • Rents placements on properties are negotiable and agreeable by tenants and landlords, but increments are subjected to tribunals.
  • Termination of contracts of either party can be done within 44 days greatest period; a tenant can be evicted within the same period and the other way round.

Australia is a country with high potentials in real estate and property investment; it has so many prime locations to invest whether for residential apartments or commercial properties, all you need to do to set off is to get an Australian visa.



About the Writer

Delan is planning to start his business in Australia. He is new to saving and investing, he has been learning a lot by reading the personal finance and business blog.
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