Investment Growth In Australia

Property in Australia offers high capital growth potential, particularly with the purchase of off-plan properties within cities such as Melbourne and Sydney as well as in coastal regions where demand is highest for new properties. Returns have been recorded of between 30.6% and 42% per annum in some areas in and around Perth. The growth in apartment units and townhouses has been quite dramatic and off-plan is still a highly profitable option for purchasers of investment property in Australia.

Despite these good growth figures, many people still question the investment potential of Australia due to increased interest rates and property prices that have risen to a level that many Australians simply cannot afford today. However they do offer great opportunity for those wishing to profit from a healthy pure investment within areas of high demand. Buy-to-let property is also offering high yields where there is a strong demand for rental accommodation. Due to an inability to afford homes for themselves, around a third of the population requires rental accommodation and this is normally located in pleasant, well serviced areas, close to schools and commuter links. Rental prices are set to increase, making any purchase of a buy-to-let investment a potentially profitable.

High interest rates and the consequent lack of purchasers are gradually forcing prices downwards because slow to move properties offer investors the opportunity to buy at reduced prices that can be negotiated down. Many of these properties represent great investment opportunities as pure investments or buy-to-let options.

Investors purchasing off-plan property as early as possible with a minimum "money-down" payment, then selling prior to completion are gaining substantial profits. Meanwhile demand for rental accommodation in certain areas across Australia is outstripping supply, creating the perfect environment for buy-to-let investments, where increased rental rates and strengthened yields are being experienced by investors in the right locations.

Australia Economy

Australia’s strong economic growth rates are higher than in most OECD countries including the US and UK. Currently the country’s GDP is higher than that of the UK, Germany and France for example. There is a low degree of risk in the Australian economy while it boasts consistently strong GDP growth, stable interest rates, rising exchange rates, relatively high levels of employment and a low rate of inflation.

In the main cities unemployment is relatively low and on average, national unemployment figures stand at around 5%. The country receives many applications each year from those wishing to immigrate to Australia and take advantage of the high standard of living and general opportunities the country has to offer.

Reasons Why Australia Is An Intelligent Property Investment Location

Year-round sunshine, giving rise to a desirable outdoor lifestyle with healthy living that so many people go to Australia to enjoy.
Some key investment areas are seeing property investment returns of around 30%+ in 2006.
Current favourable currency exchange, makes it cheaper for foreigners to invest.
Australia’s strong economic growth rates are higher than most OECD countries, including the US and UK
Strong rental demand due to currently high property prices
Interest only mortgages are available for 5 or even 10 year periods, making property purchase an even more viable option.
Population growth and rising incomes ensure the demand for housing outpaces supply, causing prices to rise.
English is the national language and legal and business practices are based on the British system.
Unspoilt beaches, tropical rainforest, rugged mountains, deserts and sun-baked horizons continue to attract people to Australia as a whole.