When you are thinking about investing into Australian real estate, look to us to provide guidance for you to succeed. Our strategies coupled with our properties are designed to grow the wealth of the investor where ever they may reside.
Thinking of an Investment Property in Australia?
Yes you can buy an Australian investment property if it is a newly developed property. However if you’re a new investor into Australia property, don’t rush in and buy any property without talking to us first. Align yourself with us and we will ensure that you receive one of the best properties for your budget that will maximize the Australian tax system. To buy an investment property that is newly built or off the plan that maximizes your capital growth and yield you need a local that will give you advice with integrity.
What about an established property?
To buy an established property, you must have been a resident for at least 12 months or be buying in partnership with a resident if you meet certain conditions. Our sister company Pillar Realty Group Pty Ltd will be able to assist you with purchasing an established property in Western Australia. If you do not qualify as a resident, you may still be able to purchase a newly developed property.
Tell me about the Australian tax system.
As a foreign resident you are included in the Australian tax system. Which in fact is a great thing; Why? do you ask. It’s a great thing because the Australian tax system allows all the expenses of owning an investment property as a deduction against your rental earnings. So all your interest costs, management costs and depreciation are deductible against your rental income. This means that your tax liability can be reduced to a nominal amount and in some case reduced to zero.
Australia vs the world in strong yields & capital growth.
The rental yields from investment-grade property in Australia are very competitive internationally. The international data shows that based on two measures – the ratio of house prices-to-income and the ratio of house prices-to-rent – Australian house prices have risen well beyond their long-term average and at a higher rate than most other countries in the world. The house price-to-income ratio, a measure of the relative expense of a home for a typical household, shows Australian house prices have increased almost 31.6 per cent over and above the long-run average. This ranks as the third-largest growth above the long-run house price-to-income ratio in the world. This also highlights that capital growth potential is also strong, as migration to Australia continues to flourish, home values climb and construction battles to keep up with consumer demand.
Living the high life.
Most investment grade property is located in large Australian cities, particularly Perth, Melbourne, Brisbane and Sydney. Each of these city’s economy and property cycle operate independently which means that each city is booming at different times. As such it’s important that you understand the property cycle of each city to ensure you don’t purchase at a time of inflated prices. We research each market and look for the usual investment indicators – infrastructure projects and commitments; proximity to amenities, schools, universities and hospitals; lifestyle advantages like beaches or stunning views; a diverse economy; and a solid track record.