In the uncertainty of today's global economic climate Australian residential property offers overseas investors a safe haven, solid capital gain and a strong yield. So strong that OzInvest guarantee the rental income for the first 10 years. Where else in the world can you find an investment offering a comparable level of confidence and safety?
A set of circumstances unique to Australia has seen the Australian residential property investment market continue to rise in contrast to the downturn in the American and European markets.
Australia passed Norway late in 2010 to be the country with the highest standard of living in the world. Source - UNDP 2010 Report.
Australia at Large
The fundamentals of the Australian economy are sound, with the financial institutions well capitalized. While many banks around the world have been propped up by governments the Australian banking system remains robust.
The big four Australian banks all retain their S&P AA rating and all four are in the top 20 banks in the world. (*S&P, Moody's and Fitch) Underpinning the strength of the financial institutions is one of the most stable political systems in the world. Australia weathered the worst of the Global Financial Crisis and emerged one of the very few developed nations to avoid a recession.
This is good news for people investing in Australia.
Hot Property
Population pressure colliding with the historic housing shortfall has seen rental vacancy rates at record lows, putting upward pressure on rents. For property investors this has delivered high yields and strong capital gain (on average doubling 7-10 yrs) over the medium to long term making residential property in Australia a valuable commodity.
The Home Front
There are simply not enough houses to go around. ANZ outlines in their 2011 Housing Snapshot Report that Australia can expect to see a housing shortage of approx 240,000 dwellings across the board. We will also see a decline in construction starts from 149,000 in 2010/2011 to 131,000 in 2011/2012, therefore resulting in a critical shortage. This is good news for investors!
Australia Welcomes Overseas Investors
Australia is one of the most open and transparent markets in the world and welcomes overseas investors. With the huge capital expenditure needed to meet housing infrastructure, the current investment and political climate make it the perfect time to be investing in the Australian residential property market. The Australian government encourages and supports foreign investment by making it as easy as possible to do business in Australia .
The tax system offers financial benefits that are attractive to overseas investors, in many cases tax advantages not available in their home markets.
A Global Economy
Australia's open banking system and globally orientated regulatory system place no restrictions on capital flows, profit remittances or capital repatriation.
Foreign investors can establish credit or loan facilities through Australian banks and the security of those credits and loans are guaranteed by the Australian government. Subject to considerable prudential supervision, the Australian financial system provides an attractive, stable and secure environment for investors from around the world.
Australia is a Big Country
So where do you start? While the Australian housing shortfall offers astute investors great opportunities the growth will be unevenly spread. To pinpoint hot spots and avoid 'cold ones' you need to do your homework and get to know the lay of the land. How to do that from thousands of miles away? It's easy with OzInvest.
Calling Australia Home
Australia not only offers great investment opportunities, it also offers a great lifestyle, which is why people from all around the world have chosen to call Australia home. If you're considering the possibility of a move to Australia some time in the future, there are significant advantages from investing in Australian property.
With no restrictions on capital flow, an investment property in Oz offers a way to establish a financial base and credit rating in Australia, and with accruing tax benefits, may even provide cash flow in the crucial early years of settling in.
OzInvest properties are all in growth areas offering employment and lifestyle opportunities. What appeals to many overseas investors is that OzInvest currently has a strong portfolio of properties in sunny Queensland and cosmopolitan Melbourne, popular destinations for émigrés.
Today's investment property may well be tomorrow's family home.
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