What are the benefits of investing in Australian Property?
The Australian property market has boomed through the global pandemic with record financial gains over the past few years. Australia has seen a safe place to invest in property. Australians desire property like no other nation; here are some key points to why it is beneficial to purchase property in Australia.
Do Australians enjoy a good quality of life?
Australia's lifestyle is world-renowned. In particular, Sydney, Melbourne, and Brisbane are globally connected metropolises; each offers a high standard of living, internationally respected educational institutions, and a fantastic healthcare system. Brisbane, and South East Queensland, including the Gold Coast and Sunshine Coast, will host the 2032 Olympics. Queensland is experiencing an infrastructure boom, along with recent migration to the Sunshine State, to enjoy a more healthy, relaxed, outdoor lifestyle.
While this is undoubtedly an obvious drawcard for anyone looking to relocate or move back to Australia, it's also a boon to investors. The unparalleled quality of life attracts people from all over the world, including immigrants, tourists, and international students.
With increased migration to 230,000 in 2022, comes a greater need for housing, especially in major cities or regional centers with universities or immigration incentives. Newly arrived migrants typically account for an astounding 60 to 70 percent of housing demand. That means investing in a lucrative area can generate a solid rental yield, a consistently low vacancy rate, and good long-term returns.
What is the Australian lending system Like?
Australia has a longstanding culture of homeownership and using the property as a means for wealth creation, underpinned by government strategies (lending policies and first home buyer schemes, among others) and tax incentives (negative gearing and other property-centric tax deductions).
With a property such a top priority, naturally, Australia has bred a robust and resilient system that has managed to withstand numerous global events. Even in 2008 – in the grips of the GFC and when the American property market experienced a hefty downturn, to put it lightly – the Australian market managed to more or less stay afloat. (It bounced back relatively quickly following a brief dip.) The market's comparative success was due to a dramatic cut in the cash rate by the RBA, along with Federal Government interventions like increasing the first home buyer grant and introducing other stimulus measures.
What is the outlook for Australian Property Growth?
We've already established that the Australian property market is nothing if not resilient, and its capital growth rate is cold, hard proof of its might. Despite short-term volatility, the market tends to provide stable and healthy capital growth in the long term: on average, it appreciates around 6 to 7 percent per year.
Data shows that this growth will continue. The eventual opening of Australia's borders will trigger a wave of migration, with record low unemployment figures and a consequent need for housing. Low interest rates look to stay in place for the next few year, financing will be more accessible. Lastly, with fewer new building approvals over the pandemic, there's likely to be a property shortage in the coming years and, as a result, greater demand.
What is the best Australian property market to buy into?
While some characteristics define the Australian property market, the reality consists of numerous sub-markets. It's the distinctions between them that make Australian real estate dynamic and full of options, with each sub-market offering a different price range, rental yield, capital growth, and lifestyle.
And it's not just the Major East Coast Capitals that are favourable to investors. Regional satellite cities like Newcastle, Ballarat, Geelong, Toowoomba, Gold Coast, Tasmania, East South Australia. Locations across the Sunshine Coast are seeing significant investment thanks to solid growth in their primary and emerging industries, improved infrastructure and transport links, international airports and job creation.
State governments are investing in regional centres to ease pressure on major cities. The Victorian Government, for example, is moving a significant portion of its workforce to Ballarat. Queensland has the 2032 Olympics with the sunshine state venues being hosted in Brisbane as well as Sunshine Coast, Gold Coast, Toowoomba, Townsville and Cairns. Melbourne has just announced the 2026 Commonwealth Games and Investment in regional areas mentioned are Shepparton, Wangaratta, Bendigo, Ballarat, Warrnambool and Geelong. Investors who are looking for affordable entry-level properties can enjoy a fantastic choice of markets beyond the capital cities.
What should I research when purchasing an Australian property?
Purchasing property anywhere in the world you have to do your research. This has become more important with Climate Change events happening more regularly. There are resources that you can access from the government areas that you are wishing to purchase in. For example, in Brisbane, there is a Brisbane Flood Awareness Website. You can use these resources to decide where it has a chance of flooding again in the future. In New South Wales there is the Flood Hub Website with interactive mapping software. In Victoria there is a list of Flood History.
Are Australian Houses built to be Climate Change Resilient?
Fire is an important part of the Australian flora regeneration process. There is a big push for houses and suburbs to become Climate Change Resilient. Many of the most beautiful areas are surrounded by forests or by a water body. Building a new property means that your new dwelling will have to meet strict criteria to help protect your investment against floods, storm damage, cyclone damage, and bush fires. You can research your chosen area on each state government website. This will help you decide if you’d like to purchase an existing dwelling. New properties are built with fire-resistant materials in these bush fire-prone areas and adhere to a strict Bush Fire Building Code. They must also meet certain criteria to not be built in flood-prone areas as well as strong enough to withstand a cyclone or severe storm damage.
Bushfire Prone Area’s
Check out our key tips from What to Look For When Purchasing a Property for more sound information about the Australian Property Market and how to select a sound investment. If you get it right your building will last a lifetime.
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