Reasons to buy in Australia

Property investment is considered as a low risk investment. There are many reasons overseas investor prefer to buy property in Australia.

1 Natural and Cultural
Being considered as one of the most liveable countries, one of the favourite holiday destinations, Australia has always been a favourite tourism country due to its high quality life style. Melbourne is awarded as one of the top ten most liveable cities in the world. Fantastic beaches, dense tropical rainforest and rugged mountains, average of 3,000 hours of sunshine per year, major sporting and arts events, national parks and wildlife, it is a wonderland with the great life style and English as national language.

2 Political
Compare to some countries which overseas property investment has to go thru a very complicated procedure, Australia Government welcomes overseas investment and the process is very simple.

 Most of the property and land in Australia except in Canberra adopts the Freehold Title System, which allows the Buyer receives an unrestricted title to the property. Unlike the leasehold Title System which the property is leased from the government for 99 years, the Freehold Title system includes:
- Title / ownership of the property for an unlimited time period
- Freedom of the owner to occupy, rent, sell or transfer the property or leave it vacant

3  Financial
This is considered as the most important factor which attracts millions of overseas investors.
 

Unlike share and debenture, property investment is considered as low risk, because it is tangible. It won’t vanish overnight due to a result of poor management or financial market crisis. The value of the property will increase according to the Economy and GDP growth. On October 19, 1987 the Australian all ordinaries index fell by 46%. For 2 years following the crash, property values in Australia soared ahead as investors returned to the stability of property.

According to the past 120 years’ statistics, Australian properties are considered as the low risk investment with promising capital growth. Property prices have risen at an average compound rate of 10.4%, which again have doubled every 7 years despite droughts, wars, changes of government, interstate and overseas migration, interest rate movements, exchange rate movements, changing rates of unemployment, CPI movements, etc.

With the low vacancy rate of 1%, high interest rate and the increasing population growth, the demand for housing is currently undersupply, which as a direct result causes property to rise to sky high.

Although capital gain tax is payable after a property is sold.  Australian tax law offers generous tax advantages to property investors. Most of thes expense occurred during investment can be claimed.

Many lenders in Australia offer wide range of mortgage options to foreign investors, including interest free loans for five to ten years which is very cash flow friendly.

The exchange rates against the euro, dollar and sterling are favourable, making property purchase in Australia a valuable option compare to investing in other developed countries.