Reasons to invest in Australian real estate



Staff member
The Australian real estate market has performed better than many since the 2008 worldwide economic downturn. There are many reasons why Australian property remains popular such as a lack of high-end property, a strong economy and serious interest from the Chinese investment community.

We would be interested to learn any other reasons you believe it is worthwhile investing in the Australian property market.

Jason D.

New Member
The most important advantage of real estate investing is LEVERAGE! It is the use of borrowed capital to increase the potential return of an investment. In real estate transactions, leverage occurs when a mortgage is used to reduce the amount of investor capital required to purchase a property.

Jason D.

New Member
Australia will see the world's biggest house price declines this year, according to one of the world's major credit ratings agencies, which declared homeowners would have to wait until 2020 to see any recovery.
In a research report released on Wednesday, Fitch Ratings forecast Australian house prices would decline a further 5 percent this year, on top of a 6.7 percent decline from the peak so far, making Australian housing the worst performer out of 24 countries for the second consecutive year.

Fitch also warned that mortgage delinquencies will rise as house prices fall and homes take longer to sell.

It said Australia has now hit a household debt-to-GDP ratio of 121 percent, which is a big risk to the nation's economy going forward.

But it said above-trend GDP growth, decreasing unemployment, and strong net migration should stabilize prices by 2020.

Fitch said the national decline of 6.7 percent as of December was being driven by lower investor demand as regulators imposed restrictions on interest-only and investment lending.
It noted peak-to-trough declines of 11.1 percent in Sydney and 7.2 percent in Melbourne as of December.

"The most expensive quartile of properties has experienced the largest declines with falls of 9.5 percent [nationwide]," the report said.


I tend to thing that the higher end of the property market is not always a good measure for the rest of the market. Just look at the non-link betweek London and the rest of the UK.


New Member
For property investors, Australian tax law offers great benefits. Leveraging to invest creates higher ROI. Lenders lend up to 100% on a property, more than against any other asset classes. So I think investing in Australian property can be a good investment decision.
This is all that I know about this, but if you want more detailed information, then I guess you should meet a professional real estate person.(moderated)
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The UK has one of the highest levels of property related taxes in the world but the market is still booming - bizarre!

What level of property income/capital tax rates are used in Australia?


New Member
From last 40 years,the Australia property has average annual growth rate of 7% per annum. The doubling in the value of properties every 7 -10 year . Australian properties has the low risk investment with promising capital growth. So real estate investment is better option.