One of the biggest no-brainers in the market is investing in Australian real estate. Real estate is the best alternative available for consistent profits over time, even though its capital growth may not be as rapid as that of cryptocurrencies or equities. So buying a residential property is a good idea if you want to live in Australia.
The reason is that Australia's housing market is stable and always booming. Even during the COVID-19 pandemic, most foreign investors looked to buy property in Australia as it stayed firm. Here's more information on what to expect when you want to buy a residential property in Australia:
- A Stable Housing Market
The Australian housing market has been stable even in recessionary and pandemic times. The global housing market has seen a drop of over 70% in the housing market. The Australian housing market has stayed stable due to its high number of household owners. Homeowners own over 70% of properties, so there has been less of a fall in prices here.
- Beautiful Locations
Australia has stunning natural landscapes where you can see various scenic sights. From the famous beaches of Queensland to the stunning coastline of Victoria, there is plenty to see here.
You can also enjoy stunning hikes in the mountains and valleys of New South Wales. Besides this, the suburbs are safe for families and have good educational facilities.
- Look At Your Circumstances
Before buying a residential property in Australia, you must know your circumstances.
- Assess whether you have the job security and funding to buy a property.
- Most lenders will prefer you have worked for at least 12 months in your current job to ensure that you can repay the mortgage and are a low risk to lenders.
- If you have dependents, this will lessen your chance of getting a mortgage loan. Lenders will look at medical, education, and childcare costs. It can lower the price by about $50,000-$60,000.
- While looking at a residential property for sale in Australia, you must also consider your credit score. You might not get a loan if you have a bad credit score. Therefore, paying off all your debts and increasing your credit before asking for a house loan is better.
How To Buy Residential Property in Australia
- Get the deposits ready
If you want to be a homeowner in Australia, you must have a deposit of at least 20% ready. With this deposit, you can avoid paying the lender's mortgage insurance in Australia. You can take a low-interest house loan if you do not have this deposit amount. But you must pay mortgage insurance first, so keep your budget in mind.
- Research the market
Australia has many beautiful locations, but each area has a different price. You should contact real estate agents and brokers to help you do proper research. Find a house in a place that suits you and where you can see yourself for a long time. It would be best to look at all the housing sectors before making an informed decision.
- It's Easy for Foreign Investors
The best part about the Australian housing market is that it is easy for foreign investors to invest here. If you are a foreigner or a non-resident, you can buy property without being a citizen or working here. You will also get a foreign mortgage with specialist brokers to buy your own home.
Conclusion
Considering the above factors, you should consider buying a residential property in Australia. It is economically stable and a good investment for foreigners and citizens.
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