We all want to be financially comfortable here in Australia, and there isn’t one of us who wouldn’t like to be able to invest in something that we know is going to provide us with an excellent return on our initial investment.
So, without twisting the topic much, let me quickly take you to the reasons why Australian real estate investment is a smart decision. Make sure to read till the end and discover a handful of benefits.
A Quick Overlook Of The Australian Real Estate
It can be a little bit of a minefield out there when it comes to investing your hard-earned cash into something that is going to perform for you consistently over the next 10 to 20 years.
Your financial adviser will be encouraging you to invest in many different things, but there is always one investment that comes to the top of the pile every single time.
I am, of course, talking about investing in property, and we can only go by the figures that we currently have in front of us that tell us that property in Australia has increased in value over the past 35 years, and it doesn’t show any signs of slowing down.
Obviously, it is very important that you do the right kind of property investment research so that you get the best bang for your buck and invest in a property that you know will increase in value and that you know you will be able to sell if you need to.
If you’re still a little bit unsure about whether or not you want to invest in real estate, then maybe the following benefits of doing so can help you make a smarter financial decision.
Reasons To Invest Here
It wouldn’t be wrong to say that the country holds immense potential to want to circulate their hard-earned money. With a bit of patience, dedication, and investment, you can actually get great properties here. Still not convinced? Check out the below reasons:
A Boost To Your Income –
If it is your intention to rent out any property that you buy, then there is definitely a market for that all across Australia, and the money that you receive in rental income is generally higher than the mortgage payment that needs to be made on the property by you.
This leaves you excess cash every single month, so you can either invest it back into the property by making changes that add value, or you can spend the money on something else that isn’t regarded as wasteful expenditure. Buying properties in stable locations like Sydney ensures capital growth and future prospects.
Excellent Return On Investment –
If past results are anything to go by, you can expect your property to increase in value over the coming years, and many people who invested heavily in the property market 30 years ago are now very financially secure. It’s all about investing in the right kind of property.
So this is why you need to do your investment research. A lot of foreigners tend to believe that they cannot purchase a property in Australia until they get permanent residency. It is actually very easy to purchase an investment property here as it offers excellent return on investment.
In case you are not a citizen of the country, you might have to apply for FIRB approval. Further, the property must be either vacant or new for a buyer to purchase it.
Concessions On Tax –
Taxes might be a big reason why investors do not want to buy property. But things are a bit different in Australia as there are enormous concessions available. These avoid tax that hinders your profitability. One can write off utilities, loan repayments, and other standard investment expenses against taxes.
Eventually, any shortfall between rental income and holding costs is covered, thereby making property investments largely accessible to common men. It doesn’t matter whether you have an American income to offset. One can still carry their losses forward without worries. The least you can get is income generated from selling a property.
It Provides Long-Term Security –
All of us here in Australia want peace of mind knowing that the property that we have invested in is going to hold its value for many more years, and it will be there to guide us with a nest egg in our retirement years. As was stated before, you can rent a property out in the meantime.
This will help you generate a monthly income, and then you just sit back and wait for your property to increase in value. Property is widely considered one of the safest options for investors. And what’s better than one that comes in a strategic location like Aus?
Incentives And Financing –
Both vacancy rates and ROI are historically low in the country, as mentioned above. A lender might lend at reduced rates on the basis of trust that Australians will not default on their mortgage payments. Additionally, it becomes one of the safest places to procure financing from established lenders.
Well, it doesn’t stop there! One might speculate over the country’s real estate because of a plethora of government incentives. There are endless examples of incentives like these- the “National Rent Affordability Scheme,” “First Homeowners Grant,” etc.
What Are The Pros & Cons Of Real Estate Investment In Australia?
Every investment comes with its own set of perks and drawbacks. Well, the Aussy real estate investment is no exception, either. Although it is relatively safer in comparison to other speculations, let me quickly take you to the pros and cons of them:
- The realty market here is less volatile, which paves the way for higher investment prospects.
- Investors might seek tax advantages higher than in any other country.
- There is a potential for prolonged growth if you invest at the right time in the right place.
- Equity is easily accessible.
- You can exercise immense control over real estate value.
- One of the biggest drawbacks of real estate investment in Australia is that properties are occasionally cheap here.
- You might have to pay taxes such as capital gains.
- As a homebuyer, you are not really guaranteed of ROI.
- Certain changes can impact your real estate investment decision tremendously.
By adding real estate property investment to your financial portfolio, you’re providing yourself with diversification, and this can help to protect you if things get a little tough.
So, what are you waiting for? If you have the necessary capital and time, invest in quality properties in Australia. Do you want us to add something here? Comment below and let us know your thoughts on this.