Buying a house and living in it is not something that everyone looks forward to doing. There are many who prefer to invest in the properties and profit from their investments. In fact, the proportion of property sales belonging to second home purchases has increased dramatically over the past few decades.
Maybe our more savvy readers have a good handle on plying the Singaporean property market. What about investing in an overseas market like Australia, where the rules, property climate and laws are totally different down under? There is always money to be made if you know how to find it. And since knowledge is power, it never hurts to read up more about diversifying your holdings into overseas properties.
Working the Lay of the Land
Needless to say, the investment landscape in Australia is vastly different from what we are used to locally. Having a proficient grasp on the ebbs and flows in their markets while knowing what exactly is in store will help safeguard your investment and improve your returns, so here are several handy tips to consider.
Consider the Advantages and Weaknesses
Common sense in investing (or in most of the real world) is not as common as many people think. Judge the strength of the property accordingly, and think beyond the short term to accurately assess its potential. Is the property in a prime location? Are further developments slated to be completed or currently in the works? Would the property value be affected by any surrounding factors?
It can be helpful to start thinking like a homeowner concerned with the value of his property rather than just an investor-cum-observer. This is something that many investors forget when dealing with investments overseas – they only see it for its potential but not its practicality. Keeping an astute sense about the small things can make a world of difference in the health of your portfolio.
Watch Out for Shocks
Singapore is one of the most investment friendly environments globally, especially towards foreign investors. Australia’s cities being more spread out each have their own bubble to deal with, promising equal parts risk and reward.
Melbourne, for instance, has had their housing market severely impacted by the Corona virus lockdown over 2020. But just while everyone was pulling out, the introduction of the vaccine and relieved measures sprang the market back up. All of these are unforeseen events that could dampen or uplift the performance of your property. Investing beyond your means is never a good choice, especially if it is risky.
Keep an Eye on Cost
Hidden costs might also slow your short-term gain, especially in the form of taxes and necessary fees. Planning to rent out the property? Be ready for renovation costs, time and even advertising cost spent designing the interior and finding a tenant. Selling the property would also rack up the cost later when contacting an agent. These quantities are less tangible to us from a foreigner’s perspective, so it is prudent to only invest what you can afford to lose.
In short, be inquisitive and proactive about your investment location and the property is sure to do well. Choose wisely and act fast – but before the latter do visit RealVantage for more information about Australian property investment. Visit https://www.realvantage.co/insights/investing-in-australian-residential-real-estate/ for information and more about planning your next Australianreal estate investment!
