Despite the availability of other assets, real estate investment remains a popular choice for investors in the Australian market. To be successful in real estate investing, however, one needs have an in-depth understanding of the Australian property market’s complexities.
What are the advantages of investing in Australia?
#1: Growing Population and Strong Demand
Due to the country’s growing population, which has increased at an average annual rate of 1.6 percent over the previous five years, demand for real estate in Australia has steadily increased over the last few years. With the increase in the Australian population, the demand for real estate in Australia has increased. Large cities like Melbourne and Sydney that are internationally forward face large numbers of migrants, boosting their population growth annually.
#2: Attractive Migration Destination
Australia as a whole has also developed a reputation as a significant migration destination, with about 7 million of its 25 million residents being born outside the country. This inflow of immigrants entering Australia has resulted in an increase in the country’s overall population growth, which has increased demand for real estate in the country.
However, it is expected that the COVID-19 pandemic would have a negative effect on birth rates and that border restrictions will have a significant impact on migration to Australia, resulting in a temporary decline in the country’s overall growth rate. Despite these hurdles, the population is expected to increase, although at a slower rate than in previous years.The yearly population change in Australia is composed of many components, which makes demand for properties in Australia high year-round.
According to a recent study, investors see the Australian property market favourably as one of the most consistent in the world. Annualized returns on Australian residential properties are between 5-7 percent, with market corrections occurring more quickly than in other countries.
#3: Favourable Investment Climate
Australian foreign investment laws are less onerous than those of many other countries, making it an appealing investment destination for real estate investors.
Additionally, international investors are allowed to invest in and own freehold real estate in Australia, broadening the market’s variety of investment possibilities. Foreign investors may also invest directly in Australian real estate without partnering with an Australian person or becoming a shareholder in an Australian company. While it is true that foreign investors must get government clearance prior to investing in the country, the approval process is rather straightforward, making the investment process accessible and easy.
Australia’s legal system is recognisable to foreign investors seeking to invest in the country due to its Commonwealth-based legal system, which is very similar to that of other countries such as Singapore. Apart from providing strong and effective consumer protection, the National Consumer Credit Protection Act contains measures that protect investors and promote a secure investment environment.
Closing Thoughts
Investing in Australian residential real estate will continue to be a popular market despite COVID-19 affecting the global economy. Once things normalise and migrants start to return, your investment now might pay off greatly in the years ahead.
For more information about Australia property investment market, check out Real Vantage at https://www.realvantage.co/insights/investing-in-australian-residential-real-estate/.
