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Invest in Australia's next growth cycle!
Local investors are returning to the east coast markets of Australia as record vacancy rates continue to drive up rental returns, reports Home Port Property...
Whilst Perth has shown excellent growth over the last 5 years, the East coast major cities of Sydney, Melbourne & Brisbane have been relatively flat. However, these hotspots are now showing clear signs of moving into their next growth phase, as is Adelaide.
Long-term average returns from property in Australia are excellent. In fact a recent 10 year study of all the major asset classes in Australia found that the direct property classes outperformed shares in terms of gross real return (average 10% per annum return) and were also by far the least risky of all the asset classes.
But the market is cyclical and investors realise that the ideal time to invest in a market is when it is at the bottom of the cycle and showing clear signs that it’s about to start its next growth phase...
Now is the time to invest
With the local media now beginning to talk up the East coast and Adelaide markets, the signs are very clear that the next growth phase is already underway, as backed up by the latest quarterly growth figures. On the macro level, everything is slotting into place too. Australia’s economy is very strong with excellent economic growth, employment is at record highs and the medium to long term outlook on interest rates is one of stability. Immigration is also high, with half a million new arrivals last year, and so overall conditions for property market growth are ideal.
The east coast markets have been relatively flat over the last 5 years with slow price growth and low supply. But demand has been building up pressure over time and Home Port Property report that market dynamics are now in a position that supply will struggle to keep up with demand over the medium term. This will mean that rents will rise which in turn will place further upward pressure on prices – all good news for investors...
The locals are now beginning to take advantage of the current market opportunities and you can too!
How to take advantage of Australia’s coming property growth as a non-resident investor
The Australian government encourages off-shore investors, with some restrictions managed by the Foreign Investment Review Board. In very general terms, non-resident investors are free to invest in new residential property.
Finance in Australia is available to non-resident investors and the Australian taxation and legal system shares many similarities to the UK system, making it relatively simple for non-resident investors (particularly those from the UK) to invest in Australian property.
Explore your options with an Australian-based company, coming to London soon!
Home Port Property is an Australian based real estate agency who specialises in the marketing of investment property in Australia & New Zealand, primarily to off shore investors. The directors of Home Port will be visiting London on Aug 31st & Sept 1st & 2nd to run a series of property exhibitions & seminars.
Investors who are interested in the Australian & New Zealand markets and would like to get an update on the markets, the growth locations, the investment process and look at some hand picked projects - some of which are being launched exclusively at these exhibitions - should visit the Home Port Property web site. For further details, visit: www.homeportproperty.com.au/london
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