Finance

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.

1. Karama, NT
2. Coopers Plains, QLD
3. Risdon Vale, TAS
4. Chigwell, TAS
5. Muirhead, NT
6. Cedar Vale, QLD
7. New Norfolk, TAS
8. Bridgewater, TAS
9. Malak, NT
10. Davoren Park, SA
11. Smithfield Plain, SA
12. Elizabeth North, SA
13. Elizabeth East, SA
14. Russell Island, QLD
15. Wagaman, NT
16. Blackstone, QLD
17. Gailes, QLD
18. Virginia, NT
19. Hackham West, SA
20. 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:

1. The real estate market in Australia has a proven record of stability with about 70% of Australian households privately owned.
2. Investing in real estate is relatively easy in Australia compared to other countries.
3. There is a reduced economic, political and social instability and you don’t have to establish a company before buying.
4. Australian real estates are affordable.
5. Properties have consistent capital growth.
6. 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.

Conclusion

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!

If you are looking for new ways to increasing your savings’ balance, continue reading to discover a simple guide to saving money in a short amount of time.

How to save money: A simple guide to increasing your savings’ balance

1. Be clear about your priorities

As an example, if your top priority is to save enough money for a house deposit, you may be more likely to stick to your budget so that you’ll be able to put an offer on a home, in the near future.

You should find that giving up small luxuries such as cafe meals and fast fashion a whole lot easier if you’re clear on what you’re saving for. Both in the short term and in the long term.

2. Save as much money as you spend on treats

As an example, if you spend $5 on a coffee, opt to transfer $5 from your everyday bank account to your long-term bank account. If you’re unable to do both, hold back on the purchasing the treat, which you were tempted to purchase for yourself.

3. Think about how many hours you had to work to purchase items, instead of their dollar cost

If you look at each item, which you’re interested in purchasing and calculate how many hours you would have to work to purchase the item in question, you may be put off blowing your budget on an item that you don’t really need. Remember that there’s no more valuable resource than your time as time is limited.

4. Pay off your credit card debt each month

Never purchase an item on credit, if you won’t be able to pay the sum of the item in question off in full by the end of the same month. One huge benefit of paying off all of your debt in full each month is that you won’t be charged extra interest on your credit card repayments. Which will help you be able to save a greater proportion of your disposable income.

5. Pay your bills each month using automatic payments

It’s well worth contacting your local bank to set up monthly automatic payments in order to pay your bills such as your rent, your mortgage or your power bill. Doing so will ensure that you’ll never have to pay late fees on your bills.

6. Purchase your friends and family members gifts on sale

It’s well worth thinking ahead and electing to purchase your friends and family members birthday and Christmas gifts on sale. As an example, you may want to buy some of your presents on Black Friday each year, when you’ll be able to take advantage of crazy sales. If you don’t want to face insane crowds, simply shop online, instead of visiting physical stores.

7. Drink water when you dine out, instead of wine or soda

If you drink water when you dine out, instead of wine or soda you’ll be sure to save at least a few hundred dollars per year.

So if you’re interested in fast-tracking your savings, it’s well worth following all 7 of the effective saving tips outlined above.