Benefits of Investing in the Australian Property Market
Both Australian citizens and property investors from other countries have discovered that Australia has one of the most stable and strongest property markets. There are tax deductions available to help you save money when investing in property, home loans designed for property investors, and a number of other benefits unique to the Australian property market.
Benefits for Investors of Australian Property
From tax deductions on investment properties to the cheapest home loans – there are many benefits to investors of Australian property.
Property Market Consistency – every country experiences fluctuations and cycles with their property markets. In Australia, over the last forty years, you’ll find the property market has been increasing. Some property values have doubled in value in a period as short as 7 years, while the average rate of the property market is an increase of 7% per year. As an investor, you can see how obtaining home loans for investment property in Australia offers a stable market from which to grow your investment and earnings over time.
Home Loans Offer Interest Deductions – The interest charged on your home loan is tax deductible, offering many investors a large deduction at tax time and reducing the amount of tax they owe the government.
Renovation Tax Deductions – when you make renovations to Australian investment property, you can deduct most of the money spent over a period of 40 years.
High Demand Means Higher Rent – in some areas of Australia, property is in such high demand that property investors can charge higher rent prices than the amount of their monthly home loan payment. This allows an investor to begin profiting from their investment as soon as the property is rented out.
Home Loans for Investors in Australia
If the stable market, high demand for properties and variety of tax deductions make you want to invest in property in Australia, you’ll find there are hundreds of home loans available for property investment. While each investor will have their own unique needs for home loans, and what they consider to be the best home loans, you will find a mortgage product suitable for your situation. You may want to use a property investment mortgage broker to help guide you through all of the various home loans available for investors, so you can be sure your selecting the best home loan and rates for your needs.
Previously, it used to be difficult for someone to qualify for investment home loans. Banks required a minimum of a 20% deposit and documented evidence of your financial ability to repay – which was sometimes difficult to produce. Banks have tight criteria and expectations for what makes a “good borrower”; and if you didn’t meet those exact specifications, you would have a hard time getting approval for a home loan.
The current lending environment
Property investing has changed, as has the home loans market in Australia – making it easier for investors to borrow higher amounts of money and at excellent interest rates. Some non-bank home loan lenders will even allow some investors to borrow more than the value of an asset (for the purpose of home renovation, for example). Take some time to do your research and home loan comparison of various mortgage products for investors, and find one that matches your needs.