Australia only has 10% of the population of the United States, but both have the same land area. This denotes the huge untapped potential offered by the land market and real estate here in Australia. With both residential and commercial property prices showing handsome returns over the last few years, there has never been a better time for us, than the present, to invest in property here in Australia.
Here are some real good reasons why you should consider investing in Australia:
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Stable performance
With a steady GDP increase of ~2.72%, the nation enjoys one of the most interesting economies of the world. This stability in gradual increase provides positive investor sentiments. This makes Australia a favorite investment destination. When you invest in property in Australia, it is worth knowing that most of the action is concentrated in Melbourne and Sydney and then Brisbane.
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Attractive Role
Those who have been long investing in Australia can vouch for the amazing returns. Additionally, when analyzing the different industry sectors over the past 20 years, we see that returns on the property sector are way higher than other asset classes. This provides the cushion of hedge against rising inflation for investors in the future.
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Attractive demand sentiment
What if we say that Melbourne itself will need 620,000 homes to cater to rise in population by 2030? This statistic itself showcases the amazing demand potential held by real estate in the Australian continent. If you invest in the near future, prices are more than likely to go up, meaning great returns for you.
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Backing from Australian Tax Laws
Investing in rental properties not only provides you with a fixed source of income, but great tax advantages to you as an investor. Australian law also allows investors to claim tax deductions for the depreciation on the structure and permanent items, which means less tax.
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Long, Long, Long term
As comparable to shares, real estate investment in Australia, will net you a long term benefit. Over the last 80 years or so, most properties continue showing gains and providing financial benefits to owners. On the other hand, many companies whose shares were held by common folks wound up, and its value simply vanished over those years. The bottom line is that property will never simply vanish! As market value and construction costs keep rising, your property’s value will also keep on increasing.
The overall mood is pretty vibrant when it comes to investing. Parking your money in this asset class will be one of the best decisions for your investment.