Australia boasts one of the largest and freest economies in the world, thanks to a series of policies that highlight the promotion of competition, respect for private property, and very low levels of government corruption, which makes its different economic sectors worthy of monitoring by firms and investors from all over the world.

In addition to this, Australia has a real estate market full of opportunities to generate profits and benefits for whoever wants to, and more importantly, can enter this niche.

Investing in real estate will not generate immediate and explosive profits and wealth, but it will be a stable and steady source of income from rental property transactions, which, with the right property, can be more than desirable and profitable.

Some Highlights of Real Estate Investment in Australia

To know what awaits you as an investor in the real estate business in Australia, you should know some of its advantages:

-Low-interest rates and a lot of government incentives

-Huge growth potential

-The real Estate Sector is a very safe one in the long term

-This sector is a lot less volatile than other markets, like stocks, shares, etc.

-According to Australian law, there are several tax deductions available for long-term investments.

-You will have control over your investment. You’ll decide what happens with it and how to run it.

-High yield investment with rental returns often being sufficient to cover the mortgage costs if using debt financing, especially on commercial property 

-Debt lending is available on numerous types of properties.

Investing in real estate in Australia can bring you these and many other benefits if you find the right investment, and for that, among other things, you can count on the support of our experienced team, who will advise you and give you the best options to preserve your wealth, and also, make it grow.

Why Buy a Property in Australia?

As in any market, there are better options than others, but even so, the Australian real estate market offers a wide and varied list of options ready to satisfy the desires of the most ardent investors.

According to different indexes and measurements, the value of properties in Australia is in the midst of a constant boom, which shows no signs of stopping soon, making the investment for later sale, renovation, or simply renting them, more than attractive. This growth would have been up to 20.6% so far this year.

The importance of this figure is magnified given the situation of the last year for the whole world, caused by the Covid-19 pandemic, which in most of the economies generated great contractions and paralyzations. That the real estate sector, as well as other areas of the Australian economy, has recovered and is producing profits and earnings, is a sign of this country's continued commitment to success and growth, so your investment will be focused in an environment that is conducive to business and with great opportunities to generate profits.

You should keep in mind that the primary spirit of this type of investment is for your wealth to bring you more returns, rather than being stuck in a bank account. Unlike other options, such as mutual funds, real estate investment is much more durable and gives you the possibility of receiving a steady income for a long period of time. Undoubtedly, after a life of work and business, having this type of option is more than rewarding.

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Some Expenses You Should Be Aware Of

When buying property in Australia, whether for your personal enjoyment or looking to generate profit and revenue, you need to consider a number of expenses and fees that go beyond just paying for the value of the property. Read on to keep in mind everything you may need. Also, always remember that our team will be ready to help you with whatever you need.

-Deposit

If you’re looking to avoid the high costs of lenders' mortgage insurance, you probably will need to make a deposit of 20% on the value of the property.

-Purchase Costs

There is a little bit more than just paying for the property. You’ll need to consider the stamp duties, which are different in each state and are calculated in accordance with the property’s value. The legal transfer of ownership is another cost that you need to consider, as well as the registration fees. Some advisors recommend investors consider building and pest inspections. This will make your investment a lot safer and profitable.

-Buyer’s Agent Fees

Lately, a lot of investors and entrepreneurs are paying for agents who help them to get the perfect property at the perfect price, and of course, that comes with a cost. So if you’re considering using one of these agents, you will need to consider them as another cost for your real estate investment.

-Property Management

There are a lot of people who personally dedicate their effort to the conservation and preservation of their property, but if you’re interested in hiring a professional who runs your investment and looks after it, there are specialized personnel who take care of these types of responsibilities. So, if you want to focus your energy on making more investments, businesses, or generating more profits, you can hire these managers.

-Repairs and Maintenance

You may think about these expenses after you buy your property, but smart investors also consider the repairs that the property needs in order to be perfect for its new owner. Taking into account the expenses you must make to keep your property in good condition and able to generate profits will save you a few headaches.

Property Taxes in Australia

In other articles, we have talked to you about how the tax system in Australia works, and how you can access several deductions and exemptions if you organize yourself and your business in the right way, and that is why we’re here.

Regarding properties, there are certain taxes that apply in Australia, according to the use given to the property, and which are not limited to living spaces, but extend to properties of different types of businesses.

In Australia, these taxes are:

-Land Tax

This is an annual tax levied on all and every real estate property. An advantage is that in most cases, you may apply for an exemption if the property is your primary place of residence. This tax is paid to the State and the territory government, and its rate depends on the combined unimproved value of your taxable property, according to Australian regulations.

-Stamp Duty

If you buy a property, either if it is for getting income from rent, or as a part of any other type of business, you will have to pay stamp duty to your respective territory or State government. According to Australian regulations, the stamp duty is a tax rate on certain documents and transactions, like property transfers. There are different rates and taxes according to the specific State or territory you’re located in.

As for other taxes, if you receive income and gains from the rental of your property, some of that income may be taxable. However, as good news for you, you may be eligible for certain deductions for expenses associated with the maintenance and care of the property, which would lower your tax burden.

Structure

Whether you should buy a property in your own name, a company or a trust all depends on your ultimate goals and objectives. Some structures are better than others to reduce taxes, including capital gains tax, land tax, etc. while others will be better for asset protection. Our team of experts will be able to guide you in what the best structure will be for your personal goals and objectives. 

What can we do for you?

Australia is full of opportunities and the real estate business is not out of these promises. We have a number of them to offer. 

Thanks to its varied regions, climates, and attractive locations, the different properties you can access on the world's largest island can provide you with a significant number of income and other types of earnings.

If you are interested in acquiring a property in Australia, either for your personal use or as a way to make your wealth generate steady income and profits, it is time to contact us and discover a number of offers we have for you.

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