7 Reasons to Buy an Australian Investment Property

January 21, 2013 2:43 pm
posted by James Parnwell

australian investment property

If you are an overseas investor and are looking into buying an Australian Investment Property then it’s good to know about some of the real strengths of the Australian Property Market. Apart from the fact that every block of land comes with a free Kangaroo and a cuddly Koala Bear (this may or may not be true :-)) what you really want to know is whether or not you are buying into a strong nation where your money is safe!

1. Australia has Strong Population Growth

We are growing at 1.4% through a mixture or births and immigration. This means there is always an increasing demand for houses. Demand means your house will tenanted all of the time. In Sydney for example its common for there to be over 50 enquiries for a single rental property. There are cars parked up and down the street. it’s quite a sight to behold!

2. Australia’s Banks are Strong

The truth is that the locals hate our major 4 banks, CBA, Westpac, ANZ and NAB. They make billions of dollars and every year they break the profit record from the year before. However, the plain truth is that they are heavily regulated by the government and play it safe. During the Global Financial Crisis of 2008 our major banks experienced little more than a hiccup, whilst many of the banks in other parts of the world went to the wall and were bailed out by their governments to avoid major crises. There was no need for that here!

3. Australia has a very Healthy Economy

I remember when I studied economics at University and the lecturer said that 6% unemployment was full employment. In other words, everyone that wanted a job had one. At the moment we are 5.4% unemployment. This is extremely high and a statistic that many other western countries envy. The US & UK are at 7.8%. This means there is a large percentage of the population who can afford to rent your Australian Investment Property.

4. Some of our Cities have an Undersupply of Properties

Sydney is certainly an example of a city where there are more people than houses to fit them in. This is always good news for the investor because it means the rent will increase and demand for property will stay strong. Properties only usually drop in value when there is an oversupply. There are some areas of Australia where this is the case, such as the Gold Coast, however this is by far the exception and not the rule.

5. Household Debt is Relatively Low

After the GFC there is definitely a trend towards saving more and reducing our credit card debts. The large debts are mostly in the hands of those that can afford them. This is encouraging to overseas investors as it means the default rates are very low. There is a very high percentage of people who pay out their loans in full and meet every repayment. This means the possibility of there being an Australian Investment Property crash is very low.

6. Home Ownership is Standard

Every Aussie aspires to own a property. This is just the Australian way. 70% of us are paying off our homes and about half of all the houses in Australia have been paid off completely. In short this means that an Australian Investment Property will be surrounded by locals who own their houses, raising the standard of each neighbourhood and the desirability of your property.

7. Australia is a Beautiful Place

australian investment property

When I have relatives come from the UK they often tell us that we live in paradise. That living in Australia is like living on holidays permanently. It certainly is a wonderful place with friendly people, beautiful beaches and a lot of fun to be had.

If you would like some further information on anything related to Australian Investment Property or Investment Finance please click contact us. If you you would like more statistical information on Australia please visit the Australian Bureau of Statistics.

One of our team of experienced Investment Property coaches or Investment Finance Mortgage Brokers will be happy to reply to you with some specific and helpful advice…

Article by James Parnwell & Jordan Cox

If you would like some further information on anything related to Investment Property or Investment Finance please contact us

One of our team of experienced Investment Property coaches or Investment Finance Mortgage Brokers will be happy to reply to you with some helpful advice…

Please let me know if you have any questions.



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