A Beginner’s Guide to Buying Investment Property in Australia
Are you planning to invest in an Australian property? Making a property purchase of any kind is a significant decision. Australia, in particular, offers one of the richest selections of real estate in the global market. Prospective investors will delight in stunning architecture, coastal properties, and comfortable prices.
Buying an investment property in Australia can, however, be tricky to navigate, especially if you are doing so from a different country. Whether you are thinking about eventually renting out your investment property or living in it as a permanent home, Australia is calling.
Read on for insight into purchasing Australian investment property!
1. Know Your Intentions
Before making any purchase decision, it’s essential to know your motivations for buying an investment property in Australia. Identifying your intentions can help you craft an investment strategy that can maximize your ROI.
At this stage in the game, your intention may simply be to purchase a property you’d like to eventually turn into a rental home. Or maybe you’re thinking about retirement and want to set aside a beachfront Australian property for those golden years.
If you are new to investments, it may be worth honing your intentions further by consulting an investment strategist. You may also wish to contact an experienced realtor like those at Sky Five Properties.
Feeling confident in your investment intentions can help you navigate the Australian real estate market with ease.
2. Do Your Research
When it comes to property investment advice, we can’t emphasize this point enough. Take your time and research well so that you can feel confident in your purchase decision.
Researching may involve brushing up on your investment knowledge. It may mean combing through pages of viable properties or learning more about Australian land purchase.
When researching, trust more than just the internet. When possible, converse with a human being, be it a realtor, strategist, or financial advisor.
Stay organized with your notes and always keep your investment intentions at the fore.
3. Identify Financial Resources and Risk Profile
Any property purchase will always come down to finances. Before you start researching potential properties, identify how many financial resources are at your disposal now.
What’s our property investment advice when it comes to finances? Be realistic when identifying financial resources.
Calculate all viable assets including all liquid and anticipated income.
Also, identify your working budget. Set an absolute maximum number for your highest budget cap, and make sure you don’t exceed this when researching properties.
Assess your risk profile by gauging your financial history and wealth record. A low-risk profile would indicate someone with an extensive, solid financial background and high borrowing reliability.
A high-risk profile would indicate someone with a less stable or extensive financial background and low borrowing reliability.
4. Budget for Tax
If you’re wondering how to invest in property, always keep taxes in mind.
Any purchase of Australian property will be taxed. When purchasing a property itself, you’ll have to pay what’s called a stamp tax on the purchase price, which is often 2 to 3 percent of that figure.
Additionally, you will have to pay annual land tax to Australia depending on the value of the property you’ve purchased.
If you’re unsure about the taxes you are eligible to pay for a land purchase, consult a realtor or strategist. Make sure that you set aside the funds you’ll need to pay these taxes prior to your purchase decision.
5. Visit the Location Itself
It’s easy to become wooed by a property simply by looking at images or 3D renderings online. However, an investment property in Australia may look very different in person in comparison to its virtual presentation.
If possible, visit the location of a viable investment property to inspect it prior to a purchase commitment. Of course, this may be difficult if you are currently based in a different country.
Nonetheless, visiting a property itself can ensure that it’s in a prime location, worth its value, and ideal for your investment needs.
Ideal investment properties will have access to all of life’s necessities, including public transport, school systems, grocery stores, and medical institutions.
This is especially key if you are looking to rent out your property to vacationers or islanders.
6. Consult Professionals
Whether you’re looking at a house for sale in Hervey Bay or a plot of inland property, you can feel confident in your purchase of an investment property in Australia by connecting with the right individuals.
This may mean connecting with an informed realtor or consulting your personal accountant to plan an investment strategy.
When possible, consult people who are familiar with the real estate market in Australia. Seek out agents who are well-versed in the intricacies of purchasing property in-country or from abroad.
At Sky Five Properties, we are always here to help our clients make the property purchase of their dreams. Reach out today to start a conversation.
7. Purchase Strategically
Real estate markets are always fluctuating along with the economy. When purchasing an investment property in Australia, make sure you are doing so at the right time and in the right place.
This may mean purchasing property in an area with a high demand for rental units. It’s a good decision if you are interested in renting out the property in the future. These areas will likely be popular destinations with low vacancies and high rental demand.
It may also mean keeping tabs on the Australian real estate market to assess stable times to purchase. A real estate agent can help advise you in this regard.
Always keep your investment strategy and budget in mind as you plan to purchase an investment property.
Your Next Investment Property in Australia
Making smart real estate investments can be the secret to long-term financial success. If you are considering purchasing an investment property in Australia, it’s critical to do your research well and craft an investment strategy.
Consult professionals whenever possible on your path to purchase. Be aware of your financial constraints as well as Australian tax policy for real estate purchases. Lastly, visit the property in question when possible to ensure that you are making the best decision.
Sky Five Properties has been connecting investors and homebuyers to valuable properties since 2014.
Browse our stunning collection of condos today so that you can launch your next investment empire.