1) Governmental Stability Inspires Real Estate Investor Confidence in Australia
Australia’s democratic form of government has been in place and quite stable for wellover a century.
The stability of this country and its strong international ties and favourable standing in world politics
help inspire investor confidence in Australian property. Investors that seek a country with stability
and incredible holidaymaking potential are hard-pressed to top Australia.
2) Australia’s International Tourism Draws Appeal to Visitors and Investors Alike
It is hard to deny the unique tourism draws Australia has in regard to driving investor interest in this
country. From the Great Barrier Reef to the world famous Sydney Opera House and from the Outback
to the rainforests this country has tourism draws like none other. The number of resort areas, the
potential for adventure and the distinctly cosmopolitan flair of its big cities combine to make this
country very appealing to holidaymakers and investors alike – and any number of investment
strategies can be targeted to specifically tap into the tourism market demand for rental accommodation.
3) Australia’s Strong and Growing Economy is Favourable for Property Investors Currently
Australia’s economy is quite strong and continues to grow. With a mining boom just about to take off in
the Adelaide area and a constant influx of holidaymakers, the potential here remains strong.
The GDP is estimated around USD 707 billion and its growth rate is on the upswing by about 3%.
Mining, oil, tourism, media, aerospace and agriculture drive the country’s economy.
The overall economic outlook is positive, which appeals to buyers who want a stable environment
in which to invest.
4) Australia’s Established and Proven Property Market Appeals to Property Investors
Whilst the prices in Australia are higher than in other investment destinations, its overall potential and
low-risk factor makes it very appealing to a broad range of property investor. The market here is proven a
nd with immigrants continuing to add to the population figures annually, along with millions of
holidaymakers coming in each year, the demand here does not appear to be going away any
time soon. The market lends itself well to buy-to-let and buy-to-hold strategies. Whilst buy-to-flip can
net big returns in some areas, many find the holding approach nets them greater returns. The overall
stability of the property market inspires confidence in Australian investment. The lower cost of living
and favourable exchange rates also appeal to buyers.
5) Australia’s Large Expat Community Helps Make Investors Feel Comfortable Here
More than 1.3 million Brits call Australia home, along with a host of other expatriates from different lands.
With more than 11,000 new British immigrants coming to Australia to work or retire each year, the expat
community here is quite large. This works to create a friendly environment for holidaymakers, retirees
and incoming expats, which is always good news for investors.
6) Good Relations with Asia, US, Commonwealth and Europe Make Aussie Investments Inspire Confidence
The Australian and UK relationship has historically been very close and remains so. As a Commonwealth
country with Queen Elizabeth II as its head of state. The relations between Australia and most of the world,
make for a very favourable investment climate. In addition to strong ties with Asia and Europe, Australia
maintains very close connections with the US, and is considered a long ally of that country…all of this gives
property investors massive confidence in the long term stability of the market into which they are committing
their funds.
7) Australia’s Strong Tourism Industry Bodes Well for Property Investors
Australia has more tourism draws that any one person could possibly list out. From its incredible Aboriginal
history and its rugged, but strikingly breathtaking landscapes to its booming cities and quaint wine country
villages, this country has something to appeal to everyone. With the Great Barrier Reef and the great Outback,
running out of things to see and do is not a problem for holidaymakers in Australia. This is evidenced by the
strong and growing figures Australia boasts. According to the World Travel & Tourism Council the industry
will command about USD 122 billion in 2007 alone. The growth in demand is anticipated to increase by
nearly 4% per annum through 2017. Indeed, some 700,000 Brits alone visit Australia on an annual basis.
The country is readily accessible from most major airports.
8) The Climate and Geography of Australia Combine to Appeal to People all over the world
Holidaymakers, Expats, Retirees and Investors Whilst many people think of Australia and immediately
picture vast expanses of bush and desert, that image does not tell the whole of the story. Australia has an
incredibly varied geography and climate to go along with it. Australia includes coastlines along the Indian
and Pacific oceans and the Timor and Arafura seas. It also is home to vast desert landscapes, mountain
ranges, rainforests, swamps, bushlands and more. The climate here varies from quite tropical in the north
to temperate in the south. Considering this, holidaymakers, expats and investors will find everything from
beach resorts to alpine ski areas to capture their fancy. The diversity of this country is one of its many
appealing factors that drives holidaymaking and investment.
9) Australia’s Welcoming Environment Encourages Investor Confidence
On the whole, Australians are a very welcoming bunch who make holidaymakers, investors, expats and
retirees feel at home. This is evidenced by the 1.3 million Brits who already call this country home, and
the more than 11,000 who join their ranks each year. The friendly environment and desire for foreign immigrants
and holidaymakers appeals to investors and opens the doors wide for several different investment strategies.
10) Reasonable Tax Structure and Return Rates Appeal to Property Investors Who Seek Solid Financial Gains
Australia’s property market, like all others, has its shares of ups and downs. The overall climate is good for investors
however. The tax structure includes a limited capital gains tax for foreign investors, a flat 10% value added tax,
no inheritance tax and a fixed stamp duty. Also, the potential for returns on investment is high. Whilst it is true
prices are dropping in some areas, this is not the case everywhere. In areas such as Adelaide, the capital growth
rate was around 28% per annum in 2007 .Rental yields are in the 5% to 6% range in many areas, as well. With
thousands of new expatriates and millions of holidaymakers travelling here each year, the potential is high and
lends itself to several investment strategies.
Australia’s close ties with many countries around the world and its incredible landscapes, climate and overall
atmosphere make this country a favourite for retirees, expatriates, holidaymakers and most especially
real estate investors. With its sustainable tourism industry and ever-growing British population, Australia
remains a strong option for property investors.
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