Australia is one of the most dynamic economies in the world. Exotic landscapes, a liberal government and a keen focus towards human development are what sets the land of adventure apart from other nations. With strong global ties, a stable government and a multicultural environment, the land down under offers exceptional opportunities and growth to investors. Australia’s land size is close to that of the United States, it is reported to have only a tenth of the population in comparison, which leaves an open array of land acquisition options for an investor. The Australian property market is also a low risk market due to the country’s resilient financial systems and development.
Krypton explains 6 primary benefits of procuring real estate in Australia:
1. Reliant government and policies: The Federal Investment Review Board (FIRB) regulates foreign real estate investments in Australia by maintaining a balance between keeping the Australian real estate market foreign investor-friendly and protecting the country’s interests. Australia’s government is globally known for its policies and tax benefits for national and international investors alike. Once the FIRB has allowed access to an investor, a foreign buyer will retain the same rights over the estate as compared to a native Australian. The Federal government also invested an impressive A$ 10.3 billion towards innovation and research in 2017-2018.
2. Consistent economy: For the past 28 years, Australia has continued to grow at a rapid speed. The International Monetary Fund (IMF) has recently published a report which suggests that by 2023 Australia will outperform all the other major economies of the globe. Australia has also ranked 5th in 2019 with an economic freedom score of 80.9 making it a beacon of economic freedom. As a business owner and investor, the stable economy of the country provides consistency in investment performance.
3. Growing population: The country of Australia has seen a sizeable increase in its population in the last few decades. According to a report, Australia will see a demand for 620,000 households before 2030. The impending future demand for residential accommodation will directly affect real estate pricing. Property value and rates are predicted to see a major hike in the next two decades. According to a publication by INSEAD, the country is the 4th smartest in the world based on the openness to immigration and skills. Australia’s growing population is especially beneficial for investors looking to increase rental yield.
4. Booming industries and workforce: Mining, energy, education, tourism and financial are some of Australia’s strongest economic sectors. According to the US Department of the Interior’s 2018 Mineral Commodity Summary, Australia has the largest gold reserves worldwide which put the country at par with its competitors, allowing regulation of wealth between industries. Aside from highly developed industries, Australia’s population consists of a diverse and active workforce. 53% of Australians are of working age with most of them from multicultural backgrounds. Human resources are one of the biggest assets of the country.
5. Strategic connectivity: Australia may be considered to be a land on the edge of the map, however, the country has excellent trading links all over the world, especially Asia and is considered to be a median between the Eastern and Western businesses. The country’s unique location also allows commerce to continue between other countries, being connected via water and air transportation. Being in the Fair Trade Agreement with The Association of Southeast Asian Nations (ASEAN), Australia has ongoing trade with Chile, Brunei, China, Hong Kong, Japan, Korea, Malaysia, Singapore, and Thailand.
6. Vibrant lifestyle: Aside from being an understated economic leader, Australia is also home to vibrant art districts and beautiful architecture. Australians enjoy a liberal lifestyle, balancing between outdoor activities and sports while immersing themselves in a bustling multicultural metropolitan lifestyle. Multiple ‘livability’ rating platforms have included Australia’s Melbourne, Sydney, Adelaide, and Perth as the top cities to live in. Australia’s natural beauty is a luxury that is marveled over by its citizens and visitors alike.
How beneficial is an investment in Australia?
In 2008 when economy giants like the UK and USA faced a drastic fall in the real estate market, the Australian market continued stably and observed a rise in the market. Real estate in Australia has seen an annual 7% growth in the last 40 years. Both the UN’s Human Development Report and Economist Intelligence Unit’s quality-of-life index prove why Australia has been globally bestowed with the nickname ‘The luck country’. In 2018, Australia reported having a 2.7% GDP growth in 2018. Real estate in the country is predicted to flourish alongside its economic growth.
Interested in learning more about investing in the Australian real estate market? Get in touch with us at firstname.lastname@example.org to set up a consultation on investing in Australia.