Australia is known for its stable and powerful economy which has witnessed 16 consecutive years of positive growth. Australia’s stable and growing economy enables a safer and more productive environment in which to do business. The Australian economy is bolstered by a strong services sector and is the 13th largest in the world. It has been given the AAA rating by all global rating agencies and is forecasted to post even higher GDP growth over the next five years.
The economy is one of the biggest mixed market economies across the globe. The services sector is a key industry propelling this growth followed by mining, education, finance, agriculture, technology and science, banking, aviation, trade and commerce and many more. Australia is also a member of the G20, APEC and WTO. It also has trade agreements with ASEAN, Korea, China, Chile, Singapore, USA, Malaysia, New Zealand, Canada and Japan. The services sector accounts for a whopping 68% of the GDP while the Australian Securities Exchange in Sydney is the largest stock exchange in the South Pacific. Australia is home to several leading global behemoths including the Rio Tinto Group, Commonwealth Bank, National Australian Bank, Woolworths, Telstra, ANZ, Caltex and BHP Billiton among others.
Investors can take heart from the fact that Australian property has always provided consistent returns over the years. The average annual growth rate has always been around 7% per annum. The valuation of properties has been seen to double almost every 7-10 years, thereby signifying good news for investors. Property offers higher returns in Australia than several other asset classes and also works as a defense against inflation. Additionally, rates will increase further with huge demand for housing along with consistent economic growth and employment. There are several tax advantages available for property investors in Australia as well.
The increasing population of the country along with reducing household size is expected to generate demand for at least 620, 000 more households by the year 2030 as per studies. This growing demand will continue to propel property prices upwards and generate higher returns for investors. The majority of the population will always prefer to shift towards central infrastructure offered by major population hubs and nearer to the beaches as well. Rental vacancy rates are coming down to almost 1% and this shows strong demand for these investments as well. With only $150 on a weekly basis, investors can make $350, 000 property investments along with savoring capital growth close to $20, 000 per annum in prime locations in Australia as per expert studies. This presents tons of untapped opportunities to investors.
Australia is one of the most vibrant global countries in the world. With excellently developed public, social and business infrastructure along with top notch roads, airports and transportation, it is a great place to work and play. Australia offers a safe and elevated environment with top class amenities, leisure and recreation options, festivals, cultural landmarks, tourism hubs and a better quality of life as compared to many other countries.
The Australian Government has already announced investments of $50 billion on infrastructure and this is creating thousands of jobs and eliminating congestion in major cities. The Bruce Highway and Pacific Highway are major transport corridors and have been upgraded. The Government is coming up with the new airport at Badgerys Creek which will benefit Western Sydney. The Melbourne Metro is another project that will benefit infrastructure growth in the country. The Perth Freight Link in Western Australia and NorthConnex in Sydney are other big ticket projects. There will also be the Capital Metro light rail project in the ACT and Second Harbour Rail Crossing in Sydney. The National Stronger Region Fund will ensure more job creation and make $1 billion available for community projects over the next 5-6 years.
Australia is known for its outdoorsy lifestyle with its warm and pleasant climate. The country loves sports, particularly cricket, Australian Rules football and rugby. Other popular sports include golf, tennis, football, baseball and soccer. Australia is home to some of the most exotic restaurants, pubs, entertainment hubs and hotels in the world. Most global food chains are present in Australia and there are more than 10, 000 gorgeous beaches spread throughout the country including famous ones like the Bondi Beach in Sydney and Byron Bay. Partying and music are major attractions in Australia. The Sydney Festival is one of the biggest arts and culture festivals in the world and the Sydney Botanical Gardens hosts one of the biggest New Year’s Eve celebrations in the country.
Investors can now expect easier financing and low interest rates in Australia. Interest rates are really low and this will benefit investors taking loans to buy properties here. Also, nonresident foreign investors can get financing easily up to 95% of the property value which is a wonderful incentive to purchase property in the country. This helps ease out financing hassles for global investors and has also spurred demand for properties across multiple segments.