Australia is doing exponentially great when it comes to real estate. According to Forbes, the prices of houses in Australia have increased significantly for the past couple of years. Because of this, it would be better to invest in rental properties to have excellent rental yields. One of the best places in Australia to rent out commercial, industrial and residential properties is Sydney. By having rental properties in Sydney, you will be able to make a lot of money. This is one of the best ways to invest in real estate in Australia.
Australian Citizens
Australian Citizens who have real estate properties that they would like to re-sell or lease must make sure that the property they have are FIRB and ITR approved. This way they can market their properties, not just to Australian Citizens but to the whole world as well. If you have capitalized in your investment, you can have a bigger market and a faster sale by selling your property to the whole world. You can make more money by selling your property to the world market.
Non-Australian Citizens
For over a hundred years, the real estate market in Australia has around 15% annual returns and it provides 37% returns on investments. With this, more foreign investors are considering investing in the real estate market of Australia. If you are a non-Australian Citizen, then you must first have a pre-approval from the federal Government. Your real estate investments must also be approved by the Foreign Investment Review Board (FIRB) or you can simply buy a FIRB government pre-approved investment property, which you can get from the developer. The Federal Government can also award foreign buyers the Integrated Tourism Resort Status or ITR. This lets foreign investors buy resort properties without the limitations of the taxation laws of Australia.
Darwin
Darwin is another place in Australia where you can purchase real estate properties. In Darwin, you can buy pure residential apartments of serviced apartments. These apartments are also great real estate investments in Australia. These properties can offer you great returns for your investment. Don’t forget about stamp duty. The best way to calculate stamp duty for any state or city in Australia is to use stamp duty calculator.
Pure residential apartments
Pure residential apartments are real estate properties that owners can stay in or rent out. These properties are usually rented out with the help of a local property manager. It is leased for 6 or 12 months. You can gain maximum capital growth if you sell these properties with good quality, design and location and get the appeal of investors and occupiers, so they could open their wallets and wave with their credit or debit cards. The net income for having pure residential apartments is 2% to 4%.
Serviced Apartments
Small Studio apartments and bedroom apartments are examples of serviced apartments. They can give you a net income of 5 to 6 percent, which is higher compared to the 2 to 4 percent net income of pure residential apartments. However, service apartments can be a long term lease or ultimately it will stay that way forever. This may still appeal to investors who are looking for purely this kind of property though. With this, it has a lower capital growth compared to a standard apartment.
More info on income protection Australia website >