Carefully selected property in Australia offers high capital growth potential, particularly off-plan units in cities such as Melbourne and Sydney as well as in coastal regions where demand is at its highest for new properties. The growth in availability of apartment units and townhouses has been quite dramatic and off-plan is still considered to be a highly profitable option for investment property in Australia.
Returns have recently been recorded of between 30.6% and 42% per annum in some key locations. Historically, the best performing real estate in terms of capital growth has always been within cities such as Melbourne, Sydney and now Perth while properties close to inner cities and beaches have always performed well.
Investors are purchasing off-plan property as early as possible with a minimum “money-down” payment, then selling prior to completion are gaining substantial profits having made a relatively small capital outlay. As anywhere in the world, off-plan prices must always be a good deal lower than those in comparable completed developments. This gives full power to “flip” investment strategies in which capital investors sell on the unit prior to project completion. It’s important to ensure that the reassignment of contracts is permitted in the off-plan project you are interested in and under what terms. Sometimes, though not always, investors may be charged a percentage of the purchase price in order to do so.
Demand for rental accommodation in many areas across Australia is outstripping supply, allowing flip investors to find a ready market from longer term investors wishing to buy into a strong letting market. Ever increasing rental rates and yields are being experienced by shrewd buyers in central or sought after locations in major cities and tourist resorts. With tourism figures ever on the increase, it is forecasted by The Tourism Forecasting Committee that by 2014 some 10,000 extra hotel rooms alone will be required to cater for visitors – all good news for short and long-term investors seeking high demand for holiday property and market buoyancy.
Highly beneficial finance structures are generally in place for the purchase of off-plan property and, depending upon the development, investors need pay only around 10% of the purchase price in the form of a deposit, while the rest is payable when and if they complete. In this way, you could secure a property at today’s price without starting to pay for it for 12 months, while of course it’s not uncommon for an off-plan property to be bought and sold again prior to completion.
http://www.propertyshowrooms.com/australia/property/investment/australia-property-investment-strategies.asp
Australia’s property market is one of the worlds most transparent and regulated.