Australia has become a very attractive location for foreign investors over the last decades. With Sydney and Melbourne having a majority of the property market value. However, buyers face the challenge of deciding whether to buy or rent a house in Australia.
There are many considerations that go into buying or renting a house which vary from one person to another. For some it’s the monetary value while others have a more emotional outlook. Whatever the case maybe, here we discuss some factors that makes investing in real estate properties in Australia extremely attractive.
Buying Vs. Renting
Many migrants prefer to rent as it is a simpler process than buying a house. Rental houses are not usually furnished and the common practice is for the tenants to make an advance deposit of 4-6 weeks as a security bond and a 4 weeks rent in advance.
The problem with renting a house is that you are continually at the mercy of the landlord. You can be kicked-out of the apartment, rents could be raised when your lease expires, leaky pipes may take forever to be fixed, you are not allowed to keep pets in the building and you have to be forced to save.
However, you can avoid worrying by simply buying your own house in Australia. One intangible benefit of buying an Australian house instead of simply renting an apartment, is the security owning a house provides you.
Buying in Australia
You can make arrangements for a temporary accommodation in Australia before you move there. This can prove a profitable venture, which provides you a temporary form of comfort before your properties arrive.
You can go house hunting, if you want to buy a house to get the feel of the neighborhood. Alternatively, you can visit simply visit Aussie’s real estate websites for the best deals. This include but not limited to:
Additionally, when you are considering the option of buying a house in Australia, it is advisable to contact and get to know local agents in the city or location you plan to stay. These agents will keep you updated of the availability and prices of houses.
You should come along with your previous rental reference, a letter to show you have an Australian bank account, a photo of identification, proof of recent employment and salary, as well as copies of your passport, to speed up rental processes. Landlords and agencies require more documentations from tenants in Australia than in Ireland.
10 Most Affordable Suburbs to invest in Australia
If you are planning on moving to a low-cost, yet beautiful rental property in Australian suburbs, you should consider the following.
- Karama, NT
- Coopers Plains, QLD
- Risdon Vale, TAS
- Chigwell, TAS
- Muirhead, NT
- Cedar Vale, QLD
- New Norfolk, TAS
- Bridgewater, TAS
- Malak, NT
- Davoren Park, SA
- Smithfield Plain, SA
- Elizabeth North, SA
- Elizabeth East, SA
- Russell Island, QLD
- Wagaman, NT
- Blackstone, QLD
- Gailes, QLD
- Virginia, NT
- Hackham West, SA
- Brookdale, WA
Why should you invest in real estate property in Australia?
Investing in real estate properties can be daunting, especially if it’s your first time of buying or investing. Here are the 6 reasons why you should invest in Australian real estates:
- The real estate market in Australia has a proven record of stability with about 70% of Australian households privately owned.
- Investing in real estate is relatively easy in Australia compared to other countries.
- There is a reduced economic, political and social instability and you don’t have to establish a company before buying.
- Australian real estates are affordable.
- Properties have consistent capital growth.
- Australian banks lend you a high percentage of the total value of the property, which affords you the means to use the borrowed money to invest in real estate properties.
Tips for buying a house in Australia
Do not buy before you visit
Buying a house before you move in or conduct a proper building inspection can lead to regrets and issues with the agent. It is advisable to visit the property.
Determine your budget and plan
Before you begin your big move, ensure you plan and budget your property purchase.
You can hunt for a loan or borrow
You can seek mortgage from any mortgage bank in that location or ask mortgage brokers for directions. You need to be financially literate in areas like home loans, interest rates and product features.
Compare the deals in the market
Go online to check for vacant and affordable houses within your budget. Compare the numerous prices in the market and make a valid selection. You can also contact a professional real estate agent or a broker, to help you find other alternatives and keep you on the loop of the best deals in your location.
Get approvals and make it legal
Obtain formal mortgage approval, exchange contracts after your loan has been approved, and seek the FIRB approval. It is unreasonable to sign a contract without your lawyer’s input. Also, sort out any tax issues to avoid getting into trouble with the authorities.
Investing in real-estate properties in Australia can be quite beneficial as illustrated above but you also need to carry out your own market survey before making investment decisions. You don’t have to wait till the market value of the house you want to buy drops, Australian policies make a handsome provision for that. So invest now!