Land Down Under: Australian Property Markets
Australian real estate is buoyed by an economy that has become ever stronger the more it interacts with that of global behemoth China to the northwest. Australian property markets abound with interesting opportunities for foreign capital. It is one of the most diverse such markets in the world, and in an exciting state of transformation right now as new venues open up beyond the traditional coastal cities of the country’s east and southeast.
While infrastructure is good, it is sparse given the sheer size of the continent, but this means that those who get in on the proverbial ground floor now can expect to be handsomely rewarded down the road.
Though historically subjected to some volatile phases, the Australian economy of late has been growing gradually, and all signs (such as the aforementioned Chinese connection) point to a rosy future of continued gains. Such a sunny forecast is backed up by factors ranging from the apparent likelihood of stable interest rates to proactive government policies that seek to resist overheating and inflation.
Robust employment figures and trends also contribute to a great scenario for long-term property value appreciation, with periodic “hot spots” due to the vast difference in population density. Even though the vast majority of Australians own their own homes, a strong rental market exists which currently accounts for twenty-nine percent of all dwelling. And the country won’t be running out of land to develop any time soon!
Easy financing is available, often on a short-term basis, with maximum tax relief on loans of only five to ten years at most, in contrast to over twenty years in Europe.
The buy-to-let market has been offering rental returns up to nine percent, even as properties showing capital appreciation average almost ten percent annually.
The government is also increasing expenditure outside the major cities, aimed at encouraging property investors to consider locations other than the usual high population density areas. And with tourism only slated to go up, both residential and commercial properties in the country should be especially attractive for years to come. And as opportunities develop all over the continent, there should be a slow shift from owners and buyers to long-term rental agreements with tenants.
These conditions are expected to grow even more in the coming years, and will provide would-be investors a quality long-term income stream, along with the potential for long-term capital growth. Better get in now before the Chinese do!
Barbra Miller, the author of this article recommends visiting http://www.theperfectfitrealestate.com for more great information about real estate by real estate gurus.
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