It seems to be the most cliched answer to a question in the UK, “if you could move anywhere in the world, where would you go?” and the answer, nine times out of ten, is “Australia.” And it’s not much of a surprise. With warm climates, beaches everywhere and cool beer, it is the country of choice for many an ex-pat looking for a new life. But what are the details when it comes to setting up that new life for you and your family? Apart from the immigration papers, what can you do from the point of view of someone looking for a change of scenery? For Australians and others, here is the lowdown on property investment down under.
Step One: Do Your Research
Many people skip this step in favor of jumping in at the deep end. It’s a fact that investing in properties anywhere needs to be prone to much research. Where are you planning to go? Do you want the city life? Or are you looking for a more quiet place to settle down? Perth is one of the more attractive areas for investment, and the suburbs of Scarborough there is a good range of investment properties that are below $500,000. And that will offer investors good rates of rental return. Also, in South Perth, you can buy an older one or two-bedroom apartment for under $500,000. Make sure you do adequate research before you get onto the ladder. You may look at places that are not on the radar yet and may even lack in the essentials, like streetlights. G & S Industries offers a diverse range of street lighting poles if you need to get involved on the building side of things.
Step Two: Save! Save! Save again!
It is always underestimated when it comes to the amount of capital you need to put behind you. On the vast majority of purchases in Australia, you have to pay 2 to 3 percent of the purchase amount upfront. This is a tax that is known as stamp duty. If you are not aware of this beforehand, it may mean a big scramble to find a large amount of cash at the last minute. For a property that is $500,000, that would be between $10,000 and $15,000! The amount that you pay will depend on which state you buy in. Make sure you save up a lot of money before signing on the dotted line.
Step Three: Be Prepared To Get Taxed
There are many Australians that are moving in the other direction to most of us, and tax is a factor in this. The state government imposes an annual land tax. This comes into play once your property holdings become more substantial. So before you invest in your chosen area, look at what the tax details are in relation to the purchase before you go ahead. The charges will change depending on the state that you are in. But if you are aware of it before you go into it, you can prepare your finances accordingly.