Investing In Australian Property As A Foreign Buyer Can Be An Attractive Opportunity!
Given the stability and potential for growth in the Australian real estate market, especially at the moment.
However, as a foreign buyer you need to navigate certain regulations and considerations before making an investment. Helen Avis of Specialist Mortgage discusses.
Foreign investment regulations in Australia are governed by the Foreign Investment Review Board (FIRB). It is crucial to familiarise yourself with these regulations, as they determine the types of properties you can purchase and any restrictions or conditions that may apply. Different rules apply to residential and commercial properties, vacant land, and new developments. Ensure compliance with the regulations by seeking professional advice and consulting the FIRB website, concludes Helen Avis.
Investing In Australian Soil? What You Need To Know To Gain An Australian Home Loan
Before you invest in Australian property, define your investment strategy and goals says Ms Avis. Consider factors such as capital growth, rental income, investment duration, and risk tolerance. Research different property markets across Australia to identify regions and property types that align with your investment objectives. The team at Specialist Mortgage can assist you with all parts of your Australian property purchase journey.
Engage professionals who are experienced in assisting foreign buyers can greatly facilitate the investment process. Seek guidance from a real estate or buyer’s agent specialising in working with foreign buyers. Specialist Mortgage is part of the SMATS Group and has a range of services available to their clients. Helen Avis and her team can assist with putting you in touch with a buyer’s agent and real estate professionals that are experienced with foreign buyers.
Consult with a solicitor or conveyancer who can provide legal advice and assist with due diligence, contracts, and property transfers. Additionally, consider engaging a property manager to handle rental management if you plan to lease out the property.
Explore financing options available to foreign buyers with Australian banks and lending organisations. While Australian banks generally require foreign buyers to provide a larger deposit compared to residents, there are lenders who specialise in providing loans to non-resident investors. Consult with mortgage brokers who have experience working with foreign buyers to access suitable loan options and obtain pre-approval before commencing property searches.
Understand the Australian taxation system and how it applies to foreign investors. Seek advice from a qualified tax professional who specialises in international taxation to ensure compliance with tax obligations, including rental income, capital gains tax, and potential tax benefits or exemptions. Regularly review your investment portfolio and monitor market conditions to assess the performance of your Australian property investment. Consider engaging a property investment advisor who can provide ongoing guidance and help optimise your investment strategy. Specialist Mortgage has access to tax agents should you need one.
Get To Know The Australian Property Landscape
Conduct thorough research on the Australian property market, including market trends, historical performance, and future growth prospects. Identify locations that demonstrate strong market fundamentals, such as population growth, employment opportunities, infrastructure development, and access to amenities. Research local property prices, rental yields, and vacancy rates to evaluate potential investment opportunities says Helen Avis.
Perform thorough due diligence on potential properties of interest. This includes obtaining building and pest inspections, reviewing strata or community title reports (if applicable), and assessing the property’s rental potential. Engage professionals to conduct property valuations and provide market appraisals on your behalf to ensure you make an informed investment decision.
Once you have identified a suitable property, negotiate and secure a Contract of Sale. Engage a solicitor or conveyancer to review the contract and handle the settlement process on your behalf. Ensure that all necessary documentation and approvals, including FIRB approval, are in order before proceeding with the settlement.
If you plan to lease out the property, engage a reputable property management company to handle tenant selection, rent collection, and property maintenance. Familiarise yourself with local tenancy laws and landlord responsibilities to ensure compliance with regulations and protect your investment.
Are You Ready To Buy Australian Property?
Foreign buyers can navigate the investment process and make informed decisions to achieve their investment goals in the Australian property market, so what are you waiting for? For an obligation free consult contact Helen Avis or Specialist Mortgage today and invest in Australian Property.
Specialist Mortgage, a part of the SMATS Group, specialises in providing tailored mortgage solutions for Australian expats and foreign investors. The team of experts led by Helen Avis, have consistently provided tailored mortgage solutions to clients worldwide, helping them achieve their property ownership dreams.
With a focus on personalised service and in-depth industry knowledge, Specialist Mortgage has established itself as a leader in expatriate and foreign national home loans.
Helen Avis of Specialist Mortgage discusses what you need to know.
Resident vs. Non-Resident Australian Tax – What Is The Difference?
Australia’s tax system is structured differently for Australian residents and non-residents, and it is important for individuals to understand the distinctions to ensure compliance and optimise their tax obligations especially if you’re interested in buying Australian Property as an Expat or non-resident.
As specialists in expatriate home loans we have a vast network of trusted advisors and if you want specific information to your circumstances you can contact us today for an obligation free consult. We can provide a detailed outline of the key differences in Australian tax treatment between residents and non-residents, including income tax, capital gains tax, and other related considerations. In the meantime, here’s a brief summary to get you started.
The first step in determining the tax treatment you need is establishing residency status for tax purposes. The Australian Taxation Office (ATO) considers various factors, such as the length of stay, intention to reside, and ties to Australia. Generally, an individual is considered an Australian resident for tax purposes if they reside in Australia or have significant ties to the country says Helen Avis.
Australian Tax And The Different Tax Rates, What Are DTAs And CGT?
Residents are subject to Australian income tax on their worldwide income. This includes income from employment, business activities, investments, and rental properties. Non-residents, on the other hand, are generally taxed only on their Australian-sourced income, such as employment income earned in Australia or income generated from Australian assets.
The tax rates applicable to residents and non-residents differ. Residents are subject to progressive tax rates, meaning the more income they earn, the higher the tax rate they pay. On the other hand non-residents, are subject to a flat tax rate on their Australian-sourced income, which is generally higher than the tax rates for residents.
Residents are also subject to Capital Gains Tax (CGT) on the disposal of assets, both in Australia and overseas. They are eligible for various exemptions, discounts, and concessions, such as the 50% CGT discount for assets held for more than 12 months. Non-residents are generally only subject to CGT on the disposal of Australian real property or certain taxable Australian assets.
Australia has Double Taxation Agreements (DTAs) with many countries to prevent double taxation. These agreements provide relief to individuals who may be liable for tax in both Australia and their home country. DTAs generally determine the taxing rights for different types of income and provide mechanisms for claiming credits or exemptions. Specialist Mortgage are part of the SMATSgroup and have access to tax agents should you require some personalised assistance.
Other Considerations, Its Not A One Size Fits All.
Residents are required to pay the Medicare Levy, which helps fund Australia’s public healthcare system. The levy is calculated as a percentage of taxable income. Non-residents are generally not liable for the Medicare Levy, although they may be subject to the Medicare Levy Surcharge if they do not have private health insurance.
Superannuation, or retirement savings, is an important aspect of the Australian tax system. Residents are eligible to contribute to superannuation and enjoy tax benefits such as concessional tax rates on contributions and tax-free withdrawals after preservation age. Non-residents can only contribute to superannuation if they are employed in Australia.
There are additional tax considerations for non-residents, such as the application of withholding taxes on certain types of income, including interest, dividends, and royalties. Non-residents may also be subject to specific tax treaties between Australia and their home country, which could impact their tax liabilities.
Understanding the difference in Australian tax treatment between residents and non-residents is essential for individuals to fulfill their tax obligations and optimise their tax positions. Residents are subject to tax on worldwide income, while non-residents are generally taxed only on Australian-sourced income. Different tax rates, exemptions, and concessions apply to each category. It is advisable to seek professional advice from a tax specialist to ensure compliance and take advantage of concessions that may be available to you.
Helen Avis Of Specialist Mortgage Demystifies Non-Confirming Home Loans In Australia.
What Is A Non-Conforming Home Loan?
Non-conforming loans, also known as specialist or non-standard loans, are designed to provide financing options for individuals who may not meet the strict criteria of traditional Australian lending institutions. These loans cater to borrowers with unique circumstances, such as self-employed individuals, those with poor credit history, or individuals with irregular income, or overseas property investors such as Australian expatriates or foreign buyers.
Are There Additional Eligibility Criteria For Non-Standard Loans?
Eligibility criteria may vary among lenders, but generally, borrowers should be prepared to provide additional documentation and meet certain requirements. This may include providing bank statements, business financials (for self-employed individuals), proof of income, and evidence of a steady employment history. Lenders offering non-conforming loans consider the borrower’s overall financial situation, including income, assets, and liabilities, to assess repayment capacity.
Are There Higher Fees And Rates For Non-Conforming Home Loans?
These types of loans typically come with higher interest rates compared to standard loans. Lenders offset the increased risk associated with lending to borrowers who don’t meet traditional criteria by charging higher rates. Borrowers may encounter higher fees, including application fees, valuation fees, and lender’s mortgage insurance (LMI) fees if the loan-to-value ratio (LVR) exceeds a certain threshold.
The loan-to-value ratio represents the proportion of the property’s value that the lender is willing to finance. Non-conforming loans may have a lower maximum LVR compared to traditional loans. Borrowers may need to provide a larger deposit or have a higher level of equity in the property they wish to purchase. Limited LVRs help mitigate the lender’s risk and provide a level of security.
Do Non-Conforming Home Loans Have Any benefits?
Non-conforming loans often offer flexible features to cater to the unique circumstances of borrowers. These features may include options for interest-only repayments, extended loan terms, and the ability to make additional repayments. Borrowers should carefully consider the loan features and assess whether they align with their financial goals and repayment capacity.
How Do I Secure A Non-Standard Home Loan?
A mortgage broker may be your best option when looking for non-conforming loans, as they have knowledge of lenders who may approve your finance and understand how they assess your mortgage application. Working with a mortgage broker can also help borrowers access a wide range of non-conforming loan options and help you assess each product offering along with the advantages and disadvantages of them. Helen Avis and the team at Specialist Mortgage are here to help if and when you need to apply for an Australian home loan.
Specialist Mortgage Is Here To Help
Given the complexity and unique nature of non-conforming loans, seeking professional advice from mortgage brokers or financial advisors is highly recommended. They can provide guidance on the available options, assess eligibility, compare loan terms and interest rates, and assist in navigating the application process. Understanding the eligibility requirements, higher interest rates and fees, limited LVRs, flexible loan features, and the role of specialist lenders is crucial when considering a non-conforming loan. Seeking this expertise can help borrowers make informed decisions and secure the most suitable non-conforming loan for their individual circumstances.
For an obligation free chat about your personal circumstances, Aussie home loans or expat home loans contact Helen Avis and Specialist Mortgage today.
20th Annual Australian Budget Review 2024
On May 14th Treasurer Jim Chalmers delivered the 2024-25 Federal Budget, with a central focus on alleviating the cost of living pressures felt by Australian’s through promised tax cuts for every taxpayer.
Central focus remains on alleviating the cost of living pressures currently being felt by Australians. The current Government recently modified the previous legislated tax cuts to offer less savings to the higher paid and more to the middle income bracket in order to try and soften the impact of inflation, which has started to slow, albeit not yet to the preferred range of the Reserve Bank.
In his most recent address, Chalmers said “The global economy is uncertain and unpredictable, fraught and fragile” influenced by conflicts in the Middle East and Eastern Europe, fragmenting global supply chains, and inflation concerns in North America and China
Australians are eager to know how this Government will address national and economic security with rising global uncertainty in this Budget. And, how it will solve cost of living pressures beyond the Stage 3 tax cuts, as well as shortcomings in education, housing, medical and defence.
Will the Future Made in Australia Act and delivering a global net zero economy be a major focus, and what will this mean for Australian businesses?
And most importantly, what impact will the Budget have on you and your family?
Watch Our 20th Annual Australian Budget Review Webinar!
We invite you to watch our 20th Annual Australian Budget Review Webinar, presented by Steve Douglas, to gain insight into:
Key insights into the Federal Budget announcement
Analyse the economic responses and new initiatives
Review the revenue and expenditure priorities
Evaluate how the budget may shape the economy
The budget impact on Australians, expats, intended migrants and investors
Assess the affect the budget may have on Australia’s property markets.
Insights From Your Mortgage Broker, Helen Avis Of Specialist Mortgage
Entering the new year, we are flooded with predictions and forecasts from the media as to what property prices, interest rates and what the direction the industry in general may or may not be heading. Each economist, commentator and journalist has either opposing or complimentary sentiments and its difficult to know where anything is heading!
Here are my thoughts for the year taking into account the varying shades of insight. The Australian property market is definitely poised for dynamic shifts and challenges and as a mortgage broker I’m at the frontline facilitating property transactions and may be able to offer some more tangible insights likely to share the real estate landscape.
Australian Home Loans – Interest Rates And Housing Affordability
I do agree, there will be a continued impact of interest rates on housing affordability. As rates fluctuate, they play a pivotal role in influencing borrowing capacities and, consequently, property prices. Exploring competitive loan options and understanding interest rate movements becomes crucial for both first-time buyers and seasoned investors.
Buying Property In Australia
The trend of regional property resurgence is anticipated to persist. We’ve seen an increasing number of individuals seeking the tranquillity and lifestyle benefits offered by regional areas. This shift not only diversifies investment opportunities but also challenges the conventional notions of property hotspots.
The Digital Age And Its Effect On Australian Property And Mortgages
In an era dominated by technological advancements, I am predicting an accelerated integration of digital tools in property transactions. From virtual property tours to streamlined online mortgage applications, technology is set to enhance efficiency and convenience in the buying and selling processes.
Changes in government policies and regulations often have a direct impact on the property market. Industry leaders have emphasised the importance of staying informed about policy shifts related to grants, incentives and lending criteria but it is hard to stay on top of and it is always changing, so if you are starting to look at purchasing options get in touch so I can update you on the changes that have been made and what’s potentially coming. These changes can significantly influence market dynamics and individual purchasing power.
Going Green – Environmental Sustainability When It Comes To Getting A Home Loan
A growing consciousness about environmental sustainability is influencing property preferences too. I’m seeing a higher demand for eco-friendly homes and properties with sustainable features. This trend reflects not only a shift in lifestyle choices but also an awareness of long-term environmental impacts.
Given the unpredictability of global and economic factors, we do seem to stress the importance of adaptability! Navigating uncertainties requires a proactive approach, strategic financial planning, and a willingness to explore diverse property investment avenues. I’ve got a great team behind me and we are here to help so that you don’t have to do it alone. We’ve got access to a great number of resources to assist you too.
As we navigate the intricate landscape of the 2024 property market, hopefully these insights serve as a compass, guiding both buyers and sellers. The ability to embrace change, stay informed, and leverage professional expertise positions individuals for success in the Aussie real estate environment and I am only a message, call or email away!
Your 2024 Guide
How To Make Buying Australian Property As An Expat As Easy As 1, 2, 3?
For Australian expatriates wishing to invest in property back home navigating the process can seem daunting. Being armed with the right information and planning makes buying Australian property as an expat a feasible and rewarding endeavour. Helen Avis of Specialist Mortgage is a seasoned professional when it comes to expatriate finance. Here, let Helen Avis step you through the basics to successfully navigate the Australian property market.
Are You Ready To Purchase Australian Property?
Like everything in life you need to be prepared before starting anything. Before jumping straight in it’s crucial to research and understand the Australian property market. Consider factors such as market trends, property prices, rental yields, and economic conditions. Engage with local real estate agents and online resources to gather relevant information or speak to one of our friendly mortgage professionals and they’ll point you to the right person. We have a network of agents, accountants & brokers to provide you with the knowledge you need before embarking on one of life’s biggest investments.
Can You Afford An Australian Home Loan?
Don’t forget about your financial goals and budget too. It’s all very well to know what suburb is providing a sound return on investment but can you actually afford it? It’s important to first know the purchasing budget you are working with. That way you, and your mortgage broker will get a better understanding of your purchasing range and the properties you can look at.
Having a chat with an experienced Australian expat mortgage broker will give you a good indication of your borrowing capacity, and how much deposit you will need to have for the Australian property you are going after. Your Australian mortgage broker will then being able to pin point some of the incentives you may be eligible for also.
Get Professionals In Your Corner For All Things Aussie Property.
We’re not experts at everything so why pretend to be? To navigate the complexities of the Australian property market, we do advise to engage the services of professionals such as a real estate agent, mortgage broker, and a solicitor. A reputable real estate or buyer’s agent can assist in finding suitable properties, your mortgage broker can help secure financing options tailored to your needs & a solicitor will guide you through the legal processes involved in property transactions.
Did you know if you purchase a property in New South Wales on the East Coast of Australia, whilst only holding a PR status and not hold an Australian passport, you would be subject to an additional 8% stamp duty surcharge on the purchase? It’s important to understand your liabilities and having an expat mortgage broker will only strengthen your options when purchasing Australian Property
The Fund Part – Accessing Australian Home Loans.
Arranging finance is tricky for everyone, and as an Aussie expat or repat there can be some loopholes and barriers. Exploring your financial options like securing a mortgage from an Australian lender or utilising existing funds in an Australian banking institution can really help. Talk to us, or consult a mortgage broker so you can understand the requirements, interest rates, and terms and conditions associated with Australian expat mortgages and non-resident lending.
Virtual Reality When Purchasing Bricks And Mortar Investments.
The biggest question we get all the time is how can I purchase property in Australia if I’m not physically in Australia? I can’t go and inspect properties?!
Yes, its always best if you can personally inspect potential Australian properties but in this digital age it is not uncommon for even locals to not even set foot in their future home. You can now leverage technology to conduct virtual property inspections, seek detailed property reports, and engage with trusted individuals to assess properties on your behalf. Ensure the property aligns with your investment goals, location preferences, and meets necessary standards.
Once you have identified a property, (digitally or elsewise!) make an offer through your real estate or buyer’s agent. Ensure the offer is contingent upon due diligence, including property inspections, finance approval, and legal requirements and negotiate the purchase price and terms to reach an agreement beneficial to both parties. You can do this all electronically and remotely if required.
After due diligence and legal processes are completed, proceed with settling the property purchase. Coordinate with your solicitor, lender, and real estate or buyer’s agent to ensure a smooth settlement process. We too can take care of this entire process for you with our dedicated team that work with expat clients daily. We know the ins and outs and act as your proxy every step of the way.
Purchasing Aussie Property Worldwide.
Buying Australian property as an expatriate may require additional considerations and processes, but with thorough research, professional assistance, and careful planning, it is an achievable goal. By understanding the market, adhering to regulations, and engaging the right professionals, expats can successfully invest in Australian property, benefiting from long-term capital growth and potential rental income. Is it time you invested in Australian soil?
Specialist Mortgage, a part of the SMATS Group, specialises in providing tailored mortgage solutions for Australian expats and foreign investors. The team of experts led by Helen Avis, have consistently provided tailored mortgage solutions to clients worldwide, helping them achieve their property ownership dreams.
With a focus on personalised service and in-depth industry knowledge, Specialist Mortgage has established itself as a leader in expatriate and foreign national home loans.
Your 2024 Comprehensive Guide To Off-the-Plan Finance For Australian Expatriates
Investing in off-the-plan properties can be an attractive option for Australian expatriates looking to secure a foothold in the Australian property market. However, navigating the finance landscape for such investments can be complex. Here’s what you need to know if you’re looking to invest in Australian Property as an Aussie expat and seeking finance for off-the-plan properties.
Understanding Off-the-Plan Finance for Australian properties
Off-the-plan finance refers to financing arrangements tailored specifically for properties that have yet to be constructed or completed. As an expatriate, it’s crucial to understand the unique financing challenges and opportunities associated with these types of investments.
Current Finance Landscape For Expatriates
In recent years, there have been significant changes in the finance landscape for Australian expatriates. Lenders have become more cautious due to regulatory changes and increased scrutiny on overseas income. Expats may encounter stricter lending criteria compared to resident borrowers.
Challenges Faced By Expatriate Borrowers
One of the main challenges faced by expatriate borrowers is proving income stability and affordability. Lenders may require additional documentation, such as employment contracts, tax returns, and bank statements, to verify income sources and assess repayment capacity. Moreover, fluctuations in foreign exchange rates can impact borrowing capacity and loan affordability.
Strategies To Overcome Financing Challenges
Aussie expatriates can employ various strategies, including:
Building a Strong Financial Profile
Maintaining a healthy credit history, saving for a larger deposit, and reducing debt can strengthen your financial profile and improve your chances of securing favourable financing terms.
Partnering with Specialist Mortgage Brokers
Engaging the services of experienced mortgage brokers who specialise in expatriate finance can provide invaluable support and access to a wide range of lenders. These brokers understand the unique needs of expatriate borrowers and can tailor solutions to suit individual circumstances.
Exploring Alternative Financing Options
Expatriates may explore alternative financing options, such as non-bank lenders or international banks with a presence in Australia. These institutions may offer more flexible lending criteria and competitive interest rates tailored to expatriate borrowers.
Seeking Professional Advice
Seeking advice from financial advisors, tax specialists, and legal professionals can help expatriates navigate the complexities of off-the-plan finance and ensure compliance with regulatory requirements.
Securing finance for off-the-plan properties as an Australian expatriate requires careful consideration of the current finance landscape, potential challenges, and available strategies. By staying informed, seeking expert advice, and partnering with specialist mortgage brokers, expatriates can overcome financing hurdles and successfully invest in off-the-plan properties in Australia.
Specialist Mortgage, a part of the SMATS Group, specialises in providing tailored mortgage solutions for Australian expats and foreign investors. The team of experts led by Helen Avis, have consistently provided tailored mortgage solutions to clients worldwide, helping them achieve their property ownership dreams.
With a focus on personalised service and in-depth industry knowledge, Specialist Mortgage has established itself as a leader in expatriate and foreign national home loans.
Specialist Mortgage’s Top 8 Factors For 2024
Buying a property in Australia can be a significant milestone and a complex process that requires careful consideration of various factors. From navigating the property market to managing finances and legalities, there are numerous aspects to address to ensure a successful purchase. We’ve compiled our Top 9 factors you need to consider when buying Australian property, covering everything from market research to the settlement process.
1) Property market research
Conduct thorough research on the property market, including historical sales data, recent trends, and projected growth. Familiarise yourself with the local market conditions and property prices in the area you’re interested in. If it’s an investment property, rental data will also be important to analyse.
Will this be the property that you and your family be living in long term? If yes, and you have young or school aged children you might want to look at the local amenity of the suburb too – factor in local schools, transport hubs and accessibility, shopping centres and activities (parks and recreation) in the area.
2) Budget and affordability
Determine your budget and assess your financial capacity to purchase a property. Consider factors such as your income, savings, borrowing capacity, and any additional costs associated with buying a house, such as stamp duty, legal fees, and ongoing maintenance.
3) Government grants and incentives
Research and determine if you’re eligible for any government grants or incentives available to first-time home buyers or specific property types. These can provide financial assistance and help reduce the overall cost of buying a house. We are here to help you every step of the way and have access to all updated information and grants that you may apply for.
4) Financing options
Explore different financing options, including home loans from various lenders. Compare interest rates, loan terms, fees, and features to find the most suitable loan for your needs. Consult with your mortgage broker to help navigate the lending process. Ensure you get pre-approval before you start seriously searching for property to buy. Our team is happy to assist with getting the pre-approvals you need.
5) Contract of sale and legal advice
Seek legal advice from a licensed conveyancer or solicitor to review the contract of sale and ensure all legal obligations are met. They will can guide you through the legal aspects of the purchase, including title searches, property transfers, and any special conditions in the contract.
6) Building and pest inspections
Consider obtaining building and pest inspections to identify any hidden problems with the property, such as termite infestations or structural issues. These inspections can help protect your investment and potentially negotiate repairs or a price reduction.
7) Property insurance
Arrange property insurance to protect your investment against potential risks, such as fire, theft, or natural disasters. It’s important to have adequate coverage in place before settlement, you may have to consider house and contents insurance as well as landlord insurance for investment properties.
8) Settlement process
Understand the settlement process; this involves finalising the purchase and transferring of Australian Property ownership. Your nominated conveyancer or solicitor will ensure all necessary paperwork, payments, and contractual obligations are fulfilled on time.
Purchasing a property in Australia demands thorough research, meticulous planning, and careful attention to detail. By considering the key factors outlined above including market research, budgeting, financing options, inspections, legalities, insurance, government incentives, and the settlement process, you can navigate the property buying journey with confidence and make informed decisions that align with your goals and objectives. Whether you’re a first-time homebuyer or an experienced investor, being well-informed and proactive can help you achieve success in the Australian property market.
Specialist Mortgage, a part of the SMATS Group, specialises in providing tailored mortgage solutions for Australian expats and foreign investors. The team of experts led by Helen Avis, have consistently provided tailored mortgage solutions to clients worldwide, helping them achieve their property ownership dreams.
With a focus on personalised service and in-depth industry knowledge, Specialist Mortgage has established itself as a leader in expatriate and foreign national home loans.
Six Sydney property experts reveal the suburbs and property types real estate investors should be looking to buy in 2024.
The Sydney property market has undeniably become unaffordable to many, with a median dwelling value $300,000 above the next highest median, Canberra, and almost $400,000 above Melbourne’s.
But like all city property markets, it is a diverse real estate landscape with its mix of sour lemons and appetising fruit cocktails awaiting property investors.
Despite its wince-inducing median dwelling value of $1,139,375 the city as a whole last month still notched up another 0.3 per cent price uptick, according to CoreLogic.
With price trends still in the positive, some suburbs are still delivering the type of capital growth, complemented by high rental returns, that captures the attention of property investors.
Houses remain the preferred investment vehicle but unit prices have been outstripping houses in recent months.
PropTrack’s Senior Economist, Eleanor Creagh, on Friday (11 April) said that in Sydney, six of the top 10 suburbs where unit growth is outpacing house price growth this year are in the Inner West, Inner South West, or City and Inner South, namely Dulwich Hill, Mortdale, Rozelle, Bexley, Balmain and Petersham.
Of all the suburbs in Australia, the house price premium over units is the most extreme in Clontarf, Queens Park, Bellevue Hill, and Vaucluse, in Sydney’s Northern Beaches and Eastern Suburbs. In these suburbs, houses can cost almost 10 times as much as units, with the difference in value ranging from $3 to $8 million.
So where should property investors turn their attention in Sydney?
Six property experts spoke to API Magazine and shared their thoughts on the suburbs that offered the best prospects for medium-term return on investment.
From the top end of town to more affordable outskirt suburbs, here are the suburbs they think will have investors sipping cocktails on the beach in the future.
Sydney’s 2024 Property Investment Hotspots
Aaron Downie, founder and buyers agent, Mackenzie Property Group
The East, Lower North Shore, and Northern Beaches could potentially see above-average capital growth
Suburbs like Coogee, Neutral Bay and Curl Curl really stand out. These areas, with median house values in the $3m to $4 million range, are known for their quality of life, access to amenities and strong demand from families, professionals and investors, which may drive property values up.
I anticipate units to continue outperforming in the Sydney market, driven by an upturn of investor interest, as well as by downsizers and those preferring the lifestyle Sydney offers over relocation alternatives.
Allen Habbouchi, Head of Project Sales & Distribution, aussieproperty.com
Sydney’s top three suburbs likely to keep delivering stronger than normal trends are Coogee, Kingsford and Kensington.
This is mainly due to their strategic positioning within 10km of the CBD, university campuses, beaches and infrastructure.
Two of our commentators named Coogee as a suburb worthy of property investor attention.
They offer lifestyle and investment opportunities to residents and investors alike.
Ultimately these factors could potentially contribute to deliver stronger than expected growth for houses and units.
Locations like Liverpool and Campbelltown are already seeing 17 per cent annual increases in searches and this renewed interest will flow on to higher prices with the increased demand.
Much of the outperformance of the luxury end of the market has been due to the immunity of that segment to interest rate rises compared to the lower quartile. With the rate cuts now priced into rate market into the end of the year and start of 2025, we expect some of the serviceability constraints and buffers to ease.
Five Dock is also a suburb seeing a lot higher search volumes, in Sydney’s Inner west, where the Sydney Metro West project station is underway, which will enhance its already good transport links. It is close to the CBD and is relatively affordability compared to other nearby locations.
The Agency, CEO of Real Estate, Matt Lahood
Sydney’s price trajectory is slowing due to high interest rates and people having less disposable income. People don’t have the borrowing power of previous years, which is reducing the rate of growth.
The most likely places to resist this price pressure are Alexandria, Burwood and, on the Central Coast, Kincumber.
Liam Carmody, General Manager, Palise Property
Despite the significant median price difference compared to other capital cities, outer suburbs in Sydney may not necessarily be the best performing.
This can be attributed to various factors, including infrastructure, amenities, employment opportunities and lifestyle preferences.
Inner suburbs often offer better access to amenities and employment hubs, attracting higher-income individuals willing to pay premium prices.
Additionally, limited supply and high demand in inner suburbs contribute to price growth. In contrast, outer suburbs may have more affordable housing but lack the same level of amenities and infrastructure, resulting in comparatively slower price growth.
Three suburbs positioned to deliver stronger than trend capital growth this year could include:
Surry Hills: An inner-city suburb experiencing gentrification and attracting young professionals and investors.
Marrickville: Known for its cultural diversity and vibrant lifestyle, with ongoing development projects driving demand.
Parramatta: Sydney’s second CBD undergoing significant infrastructure improvements and development, and offering investment opportunities.
Julian Khursigara, Partner, Search Party Property
We would expect demand for units to remain particularly strong in metro areas as affordability issues persist and investor interest picks up throughout the year.
Some recent industry surveys have indicated a growing trend of families opting to downsize in Sydney.
Along with seasoned Sydney investors returning to the market, this is probably another reason for the recent exuberance for units and townhouses.
By comparison, interstate investor attention is largely focused elsewhere, and first home buyers are also finding it increasingly difficult to break into the Sydney market.
Six property experts interviewed by API Magazine identified a range of suburbs where property prices were expected to deliver strong capital growth, ranging from affluent coastal areas like Coogee to outer suburban Endagine.
What is the median property price in Sydney?
Despite its wince-inducing median dwelling value of $1,139,375 the city as a whole last month still notched up another 0.3 per cent price uptick, according to CoreLogic.
Our Top 5 2024 Tips For Accessing If Its Time For An Update To Your Home Loan.
Refinancing a home loan can offer financial benefits, such as lower interest rates, improved loan terms, or access to additional funds. However, deciding when to refinance requires careful consideration of various factors.
1) The Interest Rate Environment
One key factor to consider when contemplating refinancing is the prevailing interest rate environment. If interest rates have significantly dropped since your initial loan, it may be a good time to refinance. By securing a lower interest rate, homeowners can potentially reduce their monthly repayments and save money over the life of the loan.
2) Better credit.
If your creditworthiness has improved since obtaining your original loan, you may qualify for better loan terms and interest rates. Factors such as an improved credit score, increased income, or reduced debt can positively impact your eligibility for more favourable refinancing options if you have gone with a non-banking lender.
3) Changing Financial Goals.
Changing financial goals can also prompt refinancing. For instance, if you wish to consolidate multiple debts, such as credit cards or personal loans, into a single mortgage with a lower interest rate, refinancing can provide a solution. Additionally, if you want to access the equity in your home for home improvements or investments, refinancing may be a viable option.
4) Flexibility and options.
Refinancing allows homeowners to reassess their loan features and seek more flexibility. If your current loan lacks desirable features, such as an offset account, redraw facility, or the ability to make extra repayments, refinancing can help you secure a loan that aligns with your preferences and financial needs.
It can also provide an opportunity to review the fees and charges associated with your current loan. Evaluate the costs of refinancing, such as application fees, valuation fees, and legal fees, against the potential savings or benefits gained from the new loan. It’s important to carefully compare the costs and benefits to ensure that the overall financial outcome is actually a positive one.
Keep an eye out for the cash back incentives that some banks offer, these can cover the costs of the refinance and sweeten the deal with some of the bonus left over. Your mortgage broker will be able to assist in comparing the best deals for you when it is time to refinance.
5) Loan structure.
If you currently have a fixed-rate loan and interest rates have fallen significantly, or have a variable-rate loan and interest rates have increased or predicted to rise, refinancing to a different structured loan could be advantageous. However, be aware of potential break fees associated with terminating a fixed-rate loan prematurely & the break fees alongside potential savings to determine if refinancing is economically beneficial in your situation.
You can quickly weigh the costs of breaking the fixed term by simply reaching out to the bank and asking them what the break cost of the fixed loan is. They should be able to give you an answer on the spot.
How can Specialist Mortgage Assist You?
Seeking advice from mortgage professionals can provide valuable insights and guidance in determining the optimal time to refinance. At Specialist Mortgage our brokers can help assess your financial situation, analyse loan options, and recommend the most suitable refinancing strategy based on your individual circumstances and goals.
Deciding when to refinance requires careful evaluation of various factors. Monitoring the interest rate environment, assessing improved creditworthiness, changing financial goals, and reviewing loan features and fees & weighing the costs and benefits are crucial considerations, especially when purchasing Australian property or applying for an Australian home loan as a expat.
By understanding the appropriate circumstances and conducting thorough research, individuals can take advantage of refinancing opportunities to achieve their financial objectives and potentially save money over the long term.
Is it time for a refinance? Still unsure? Touch base today and we’ll do a deep dive into your situation and see if it’s worth it.
Specialist Mortgage, a part of the SMATS Group, specialises in providing tailored mortgage solutions for Australian expats and foreign investors. The team of experts led by Helen Avis, have consistently provided tailored mortgage solutions to clients worldwide, helping them achieve their property ownership dreams.
With a focus on personalised service and in-depth industry knowledge, Specialist Mortgage has established itself as a leader in expatriate and foreign national home loans.
