Future Of Real Estate Investment In Australia For Residents And Foreigners

Build Wealth through property investments

Today undoubtedly one of the best ways to build wealth is through investment precisely in property. You can feel the strength of real estate investment Sydney when doors for your bright future are continuously opening for you. The best thing in real estate investment is that it is very much tangible and you can visit your investment and feel it by touching and seeing it. Moreover if people are living around your property then it means your investment is in demand. Investment in real estate enjoys leverage i.e. chances of improved and benefited returns on investment. If we compare investment on shares with investment in real estate, it will be observed that shares provide better returns than real estate but practically it is altogether different as shares don’t have leverage which is a key to enhance your wealth. While buying shares you cannot negotiate and have to purchase them on market rate but in case of property you have all the chances to negotiate and can get a better opportunity too.

Real Estate Investment in Australia

According to some critics Australian property market is highly overvalued but the ongoing high demand for the Australian property rejects their statements. A total average of 6.8% raise in property prices has been observed during 2014. It is important to understand that low rise buildings all over Australia are in more demand and reflect higher growth rate as compared to high rise buildings and towers. Foreign nationals and especially Chinese have been highly attracted by the Australian property and they are investing a lot in the real estate business. If you are interested to purchase a recognized and reputable property you must be a resident from the last 1 year. However there are certain cases in which you can buy the property in partnership if you are not a resident from last 12 months. While purchasing the property you will be submitting a tax called as Stamp Duty from 0.3 to 2.5% depending upon the location of the property.

Property investment in Australia for non-residents

Rules for the non-residents to purchase property or invest in real estate are very complex and difficult. It is important to mention that Australian Government is planning to make it more complex by the end of 2015.Foreign investment Review Board (FIRB) is the authority which deals with non-resident property investors. Normally the foreign residents cannot buy an established property rather they get approvals for establishing dwellings for redevelopment. A dwelling is defined as the area or piece of land which was not previously owned by any person. Depending upon the amount of the real estate investment by the foreigners FIRB charges a fee ranging from 5000 AUD to 50,000 AUD. Taxation rules are also important to understand as if you are planning to buy the property for family the tax will be low as compared to property bought for business purposes. Now Australian government is encouraging the foreigners towards property investment advice by introducing few tax relaxations.