There’s no doubt the housing market in Australia today is booming. The conditions in Sydney and Melbourne have continued to be solid with an upward trajectory in prices.
In other cities, like Brisbane, the conditions have firmed. There’s also evidence that housing turnover is starting to rise.
Do these conditions signify that it’s a good time to buy in Australia?
Well, there are a lot of advantages to looking into Australian homes. Although that’s a strong factor, you’ll find other good reasons for buying a property in the country.
Keep on reading to find six solid reasons to invest in the housing market in Australia.
1. Tax Advantage
This is some sort of guarantee for homeowners that they won’t lose as much money on an investment. Australia has a tax break referred to as negative gearing.
The term means that your expenses and interest payments are greater than the return. This means that even if the house’s price appreciates every year and you have positive cash flow, it may still be losing money.
The negative gearing loss includes the computation of a lot of factors. This includes your property income, property expenses, and depreciation.
You’ll have to figure out the amount you can deduct for depreciation, but you can hire an accountant for that. The expenses include capital items, revenue deductions, building allowances, and more.
If you see a loss, you can get a tax break on all your income. It works by offsetting the net rental loss against your other income.
The result is that, for tax purposes, you have less income. Meaning, you pay fewer taxes at the end of the financial year.
This tax advantage is one of the reasons why buying rental properties becomes appealing to investors.
2. Stability
Did you know that when the U.S. real estate market crashed in 2008, Australia managed to stay afloat? Even if the other countries, like Spain and Ireland, suffered from the bust, the government of Australia was able to stop house prices from falling.
One of the bold decisions they made was to provide a higher amount of grants to first-time home buyers. From $7,000, they increased the grants to $14,000 and $21,000 for established and new Australian homes, respectively.
Many opposed the massive increase. Still, it’s one of the biggest factors why home prices in Australia remained on the upward course. All the while, U.S. home prices went on a decline.
That doesn’t mean the Australian housing market is without fault. But if another housing crisis is one of your biggest concerns, you might be able to rest your fears if you buy property in the country.
3. Strong Real Estate Market
If you’re buying a property for investment, this is a good time to do it. The real estate market is booming once again after a short downturn.
It’s experiencing a sharp uptrend today; the last time Australia has had a high was in 2017. A huge number of Australians are intending to buy a property today.
The cities that experienced the strongest growth are Melbourne and Sydney.
4. Amazing Views From Australian Homes
It’s no secret that Australia has some of the best views in the world. If you want easy access to such, then moving into the country is a wise move.
The different regions offer different types of views, so you’ll have to take that into account when choosing where to buy a property. Buying a house in Sydney, for example, will allow you to see the Sydney Opera House from various places. You can view it from the Harbour Bridge, the waters, the air, and more.
Buying a property from Villa World in Gold Coast, on the other hand, will give you easy access to some of the most spectacular views in the country. You can chill on the beach, hang out with whales, dine with views, and so on.
The other parts of Australia are easily accessible once you’ve established a home in one part. You can head to New South Wales for the weekend, for instance, or Victoria.
5. Accessible for Foreigners
Australia has strong policies about foreigners purchasing properties in the country. The Foreign Investment Review Board (FIRB) is the one that regulates investments by foreigners, whether in property or business.
Of course, you’ll have to go in through some hoops to become eligible to purchase. There are certain rules to follow, too.
For instance, you can’t buy an established home if you’re not planning to live in it full time. You can, however, buy a new-build property if you plan to only live there at times. You can also buy new ones for investment.
You need a FIRB approval for both these options, but there’s one way that doesn’t need approval. Non-residents can buy off a new plan or apartments directly from the developer.
6. Living Standard
Australia has good performance in many aspects of human well-being. It measures great on income, education, environment, health, life satisfaction, and more. Overall, it’s a good place to look into if you want to move somewhere with a guarantee of a good life.
Public transport in the major cities of Australia has a high standard. You can go anywhere using buses, trains, trams, and taxis.
If you plan to explore the other regions, flying is a good option because of the low prices of domestic flights. Buses and interstate trains are also available as even cheaper options. Trains have the added benefit of beautiful views.
Australia also has much warmer weather, so that’s a plus if you don’t like the harsh winters.
Choose Your Australian Home
Aside from reviewing the specifics of buying Australian homes as a non-resident, you also have to account for the usual considerations when buying a house.
Make sure you can see yourself living in it for years to come. Learn more tips by reading our other articles.