If you ever thought you might want to invest in property, Australia is a great place to do it. Even if you were moving abroad, there are plenty of benefits to investing in property here. Whether you’re overseas for the short or long term, investing in Australian property may be an ideal thing for you.
Get and Stay on the Property Ladder
Even if you don’t know how long you will be gone for after moving abroad, having one foot on the property ladder in Australia will act as a safety net. If you ever were to return, you know you have a property available to you. For this reason, you should make sure you invest in an area where you would like to live. You will not be subject to any property price increase in your desired area if you already own property there. Trends have shown that residential areas in and around major cities have developed great long-term capital growth.
You Can Receive Extra Income
There is a chance you can get extra income by renting your property out. The money made will help cover any fees and taxes, but sometimes a profit is there to be made.
Eligibility for Tax Breaks
While tax breaks can be seen as a great benefit, they shouldn’t be your sole reason for your investment while living overseas. Australia offers amazing tax benefits to those investing in Australian property. It does not matter if you are an Australian resident for tax purposes, you can deduct your taxable income from the financing costs. You can also deduct maintenance costs. You are also entitled to a depreciation value, but that relies on a number of factors like the value of the building and how old it is.
If you are not an Australian resident for tax purposes, it is still possible to claim maintenance and management costs, as well as depreciation. You won’t be entitled to the 50% exemption on capital gains.
Another benefit of having an investment property in Australia is the opportunity to continue adding value to the home. If you ever decided to not move into it, you could possibly make a hefty profit. Having your own property means you can do what you want with it. If you’re overseas at the time, then there’s the added benefit of not having to work around any renovations going on. Anything from major renovations to upcoming a garden will add value.
Property investment is quite a stable investment to make. If you are looking for a loan, banks are usually quick to lend against property. Borrowing against a property can have very low rates when compared to other types of lending. You can also borrow against a large percentage of the property. Leverage will give you the chance to have a greater investment with spending minimal personal funds. You should speak to a loan advisor that works with Australian expats because while getting financed is possible, it is becoming increasingly difficult.
Investing in Australian property can be extremely rewarding, but it takes a lot of work at first to reap all the benefits later. If you are thinking of moving overseas but want to invest in a property, you may want to tie up loose ends before you leave. To make things easier and less stressful, leave your packing to the professionals, so you have one less thing to worry about. Overseas Packers and Shippers will help you with your next move so you can focus on your property and other details while a major job is being taken care of. Contact us for a quick quote today.