Reports state that the American real estate market has experienced its fair share of foreclosure. However, the segment in on route to recovery, there are some markets that are still struggling. The worst hit areas were Detroit, Phoenix, Seattle and Houston. They have reported an overall decline of more than 70 percent in property value. What would be their normal cost they have had their price reduced by half. The result saw many buyers investing in properties in Australia.
Reasons for Investing in Australia
Whenever anybody thinks of Australia, the first image that crop in to the mind is the country’s glorious weather throughout the year. Along with its brilliant hot weather, the country is spacious. It is a perfect getaway from the busy pace of city life. This is evident in the ability to drive for hours across vast expanse of nature and open lands. However, this does not mean that Australia leads a sedentary life. It is also well known for its constant pursuit of outdoor activities. Other than this, the country is famous for its fresh produce, lavish coral reefs and beautiful flora and fauna. The lifestyle is healthy and sporting. This makes the country the perfect place to settle.
Expenses in buying property in Australia
Investing in this country has been relatively secure especially for the last decade. Reports state that some of the market has reported more than eight percent as returns. Australia is a country for the nouveau rich. It boasts of its rich culture, vast expanses of wilderness and array of outdoor sports. When buying a property like AV Jennings homes, it is important to have a fixed budget. The amount of money should be determined after it covers all the necessary costs including the mortgage. The budget should be around five to seven percent of the purchase price. The following are some of the costs that should be considered:
Legal Fees and Solicitor fees: This can range from one to two percent of the total worth of the property. However, it is greatly defined by the location of the place. The solicitor’s fee is negotiable.
Land Transfer registration fees: The amount greatly differs from one place to another.
Survey Fees: This is not compulsory. However, if the buyer is not located in Australia, it is best to carry this out.
Strata inspection fees: This is applicable for apartments. The inspectors ensure that there is no structural problem with the new place. It is important to remember that if the buyer stays more than six months in a year in Australia, they will be liable to pay income tax. Before travelling overseas to find the appropriate property to live, it is important that an agent be employed. They search the existing properties and review them according to the needs of the buyer. This may incur more expenses, but is more affordable in the end.
Benefits of buying property in Australia
Unlike the share market, investment in property constitutes of low risks. Some of the benefits of buying property in Australia include the following. It helps in building a positive asset base. The potential lenders favour individuals with properties when they see that they have not defaulted in their payments. It is important to remember that investment in real estate constitutes of lesser risks. Reports state that the country has had consistent growth over the past few years. Real estate property can be bought at 80 percent LVR (Loan to valuation ratio). The amount of LVR is calculated based on the amount of loan and dividing it with property’s value. If the buyer is a first time investor, and have permanent residence in the country, one can apply for the First Home Owner Grant. The buyer would also receive multiple concessions in stamp duty and grants.
Australia is a lucrative country. Investing in properties like AV Jennings would ensure improved returns. The author thinks that investing in these properties would greatly benefit the buyer.