For years, investing in property has been one of the best ways to manage wealth in Australia, but that could be changing now, according to the NZ Herald. The newspaper reported that due to a fall in the market, property is not as stable an investment as it was before. Buying property is always a popular option for investors in Australia, and with good reason. Our market has consistently performed over time, and for mortgage brokers, investment clients are just as valuable as the traditional homebuyer segment.
Investing in Australian property has become popular with foreign investors and Australian expats looking for strong returns and stability. Investing in property abroad is riskier than investing in property in Australia. It's harder to manage a property from afar and there may be costs you haven't thought about. All of this led to a considerable increase in house prices, which are too high.
There is no real justification for the 30 percent increase, other than buyers working from home looking for more attractive places to live, especially along the coast. Australia now has some of the highest prices in the world in terms of revenue. If they are selling their own properties or are receiving a commission from the developer, then they are not a buyer agent acting on their behalf. Your buyer agent must be licensed and present in the state where you are buying a property.
So, instead, I've put together a list that will serve as a useful guide for any investor looking for long-term growth. Now, I wasn't surprised by the request: I've found that most real estate investors start their journey by trying to choose a prime location (because they think it's the best place to buy an investment property) or find a property that is a great investment. With interest rates at an all-time low and vacancy rates perhaps even lower, it has never been better for those with an investment property in Australia to talk on the phone with their broker and have a conversation about their property investment strategy. When this wealthier demographic moves to a suburb and this translates into an area where locals can and are prepared to pay a higher price to live there, put a financial floor under their investment property.
Yes, we have entered the adjustment phase of the real estate cycle, but I currently see a window of opportunity for real estate investors with a long-term focus. We also saw that there were very few properties left on the market after price increases a year ago or so, and only recently have homes come back on the market. As their priorities change, some buyers will be willing to pay a little more for properties with “pandemic appeal” and a little more space and security, but it's not just the property itself that needs to meet these newly evolved needs, a “livable location” will also play an important role. In reality, you won't need to apply for FIRB approval until you've found a property, but you should start researching your requirements for not buying an ineligible property.
They will deal with real estate agents for you and make sure that the property you are buying represents a good opportunity. If you are not a resident or have a temporary visa, you have a legal obligation to obtain permission from the Foreign Investment Review Board (FIRB) to buy property in Australia. It may seem like a rental property requires more effort than other forms of investment, but compared to the stock market, it's a much safer bet. Some buying agents will charge a fixed fee, while others will charge an upfront fee, as well as a percentage of the purchase price of the property.