Buyer’s Advocacy for Foreign Property Investors in Melbourne

by Prime Estate

Investing in property can be a profitable venture. Done right with the necessary market knowledge and economic insight, it can yield good returns for any investor. But the risk of putting your eggs in the wrong basket is higher if you are not equipped with the knowledge and experience to make the right decisions – a risk much higher again if you are purchasing from abroad.

In 2018, the Australian property market has seen a slowdown in price increases and a corresponding decrease in auction clearances, indicators that will make many think twice before investing. But savvy investors know if you know where to look, you can still find promising opportunities for investment. Melbourne, for one, has seen a constant 10% market growth over the past year, and Hobart sits above this at 11.5%. Sydney, on the other hand, continues to see growing investments in infrastructure, with the government raising the allocation for the next four years by AUD$8B, paving the way for properties to continue to increase in value and marketability over the longer term.

These kinds of variables make it advisable for offshore investors to hire a local buyer’s agent, one who is across the highs and lows of the investment market and is aware of the economic factors that will impact on the market’s performance. If you are a foreign investor looking to buy a property in Australia, here are some good reasons why employing a buyer’s agent may be a smart first move:

Knowledge of neighborhoods

Australia’s communities have much to offer in terms of lifestyle and culture. Often surrounded by beautiful beaches, packed with bustling cities, and recognized worldwide for its great outdoors, many of its communities offer a rich mix of sought after lifestyle factors along with modern conveniences, retail and entertainment. If investing in a rental property, a local agent will know which pockets can provide the greatest returns and which areas will best meet your objectives. Proximity to schools and business districts, and accessibility to transport are key factors that affect both long-term rentals and an enjoyable lifestyle.

Insight into market trends

With the ups and downs of the Australian economy in recent years, it takes market knowledge to ensure you are investing your money wisely. Some key factors that directly affect risk and returns in property investment include migration, wages and employment, and transport and infrastructure developments. A property advocate will be able to guide you in your decision of whether and where to invest by understanding the local market and the impacts of broader economic factors on specific areas.

Lending Restrictions

Funding your investment could be a challenge if you need to take a loan. Local banks are stricter in dealing with foreign investors, with some big players not issuing loans to non-residents. On the flip side, lending to the investment market is rather competitive, and there are many lending options offering home loans. Your buyer’s agent will be able to connect you with their trusted brokers who can help you navigate loan options and requirements.

Ready to consider purchasing a property in Melbourne? Get in touch with Prime Estate today and we’ll be happy to make the property investment process easier for you. Call us today on +61 3 9686 0058.

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