G’day, fellow Aussie expats! Have you ever dreamed of investing in the booming Australian property market while living the expat life abroad?
Well, you’re not alone. Australia’s real estate landscape has long been a promising playground for investors. So, why not make your mark and build a profitable property portfolio back home? It’s easier than you might think!
Investing in Aussie properties from overseas may seem like charting uncharted waters, but fear not! As a seasoned buyers’ agency having worked with numerous expat investors, InvestorKit is here to share three invaluable tips on financing, portfolio planning, and purchasing. Let’s dive right in!
Financing: Charting Your Course with an Expat Specialist
Navigating the financing waters from overseas can be like deciphering a foreign language. Here’s why it’s crucial to secure yourself an expat specialist finance broker:
– Credit Assessment: When you’re living and working abroad, banks will assess your credit based on your foreign income and expenses, which is more complicated than applying onshore.
– Loan product selection: Banks often have varying deposit requirements for overseas loan applicants compared to domestic ones. You might need to prepare a more substantial 20-30% deposit instead of the common 10% for domestic applicants. Choosing the right financial product tailored to your situation is important.
An expat specialist broker is your secret weapon, making your financing journey smooth as a breeze, maximising your borrowing capacity (if needed) and securing you a top-notch deal on mortgage rates.
Portfolio Planning: Set Sail for Long-Term Success
As an expat, your portfolio strategy might be different from onshore investors:
– Global Portfolio Integration: You might already have investment properties in your current country of residence or elsewhere, so you need to plan your Australian portfolio to align with your global investment strategy;
– Future Residency: You might plan to return to Australia someday, so you want to have an investment property that can be turned into your future home;
– Digital Nomad Dreams: For adventurous souls who envision moving around Australia, owning properties in multiple cities/states might be the way to go. Imagine living in your own properties as you explore the vast Australian landscape!
Regardless of how distinct your portfolio plan may be compared to investors onshore, the golden rule remains unwavering: Think long-term.
As we often emphasise, property investment isn’t a sprint but a marathon. This principle holds even more significance for expats, given the constraints of time and energy when dealing with property in a foreign land. Instead of chasing quick profits through constant buying and selling, the wisest course of action is to swiftly build a diversified portfolio, allowing your equity to flourish naturally over time.
Purchasing: Assemble Your A-Team
Buying property from afar can feel like navigating a labyrinth blindfolded. Don’t fret; here’s your winning team:
a. Expat-Savvy Lawyer or Conveyancer
While you won’t face the same restrictions as non-residents, expect legal procedures to take longer when you’re overseas. An experienced conveyancer ensures a smooth journey through the paperwork maze and helps you avoid delays.
b. Tax-Savvy Accountant
Your accountant should understand both Australian and your host country’s tax implications for property investments. They’ll also help you look at your financial scenario holistically and optimise the structure of your investments and affairs.
c. Local Property Expert (Buyer’s Agent)
Living overseas might leave you in the dark about the Australian property market. That’s where a buyer’s agent comes in. They help you:
– Plan your portfolio based on your goals and unique situation;
– Gaining profound insights into the Australian property market through extensive research;
– Conduct due diligence to minimise risks, such as bush fire, flood, traffic noise, etc.;
– Negotiate on your behalf to ensure you are not paying any higher than necessary;
– Connect with other professionals like building & pest inspectors, conveyancers, and property managers in case you don’t have local connections.
d. Efficient Property Manager
A stellar property management team helps you secure high-quality tenants, minimise vacancy periods, provide reasonable rental price suggestions when it comes to lease renewal, and help you maintain a good relationship with your tenants. With a good property management team at the helm, you can enjoy peace of mind, knowing that your property is not just in good hands but is thriving under their expert care.
InvestorKit has helped both onshore and expat investors achieve their financial goals through property investment. Our dedicated research team has profound knowledge of national and local economies and property markets. We hold our property selection criteria to the highest standards, ensuring every property we buy is one we’d invest in ourselves. Plus, we actively source off-the-market opportunities to keep you one step ahead of the competition from local buyers.
Ready to embark on your property investment journey back in the homeland with InvestorKit? Click here to secure your 45-minute FREE, no-obligation consultation! Your voyage to Australian property success awaits!