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  • Writer's pictureAlison Wong

Advantages of Australian Property Investment Compared to UK, US, and Canada

Updated: Apr 11

For most investors who want to buy property in Australia, their purposes include planning for immigration, creating income, realising capital growth, and planning for retirement.

However, achieving success is not easy, especially when investing in Australia’s properties to pursue stability and long-term returns. If you invest in Australian real estate in a way that is unrealistic in the Australian real estate market and select the wrong properties, you will not achieve the expected results.

So, what are the advantages of investing in Australian properties?

Population high growth rate

The characteristics of the Australian real estate are mature and stable, and the legal system is sound. It is a market with long-term rising house prices. Although there will be rising house prices, if you choose some good properties and hold them for a long time, you can achieve stability and get high investment returns.

We judge whether a country or a city’s house prices are worth investing in based on whether the population increases. Australia is a major immigrant country, especially the cities of Sydney, Melbourne, and Brisbane. A large number of immigrants flow in each year; international students and tourists, whose arrival constantly stimulates the demand for property trading in Australia.

In contrast, the real estate market in Hong Kong or the Mainland has been greatly affected by policy. In recent years, the outflow of residents has intensified, and the prospects of the property market have not been clear. With the “drive” of capital chase, funds will flow to the real estate markets with significant growth potential. Therefore, more and more people are “showing their skills” in the global real estate market.

As an immigrant country, the threshold in Australia is far lower than in other countries, and the superior natural environment has attracted many overseas talent to move there and immigrate.

The Australian Bureau of Statistics expects the population to increase by 40% from 2016 to 2041, from 24.2 million to 34 million, and the number of households will increase by 3.4 million.

Australia issues about 200,000 immigration quotas each year. It is estimated that by 2031, Australian housing demand will be higher than 663,000. Although the Australian population is reduced under the influence of the recent pandemic, it is estimated to reach 31.8 million by 2040.

Since 2005, the vacancy rate of Australian real estate leasing is generally only about 2%, and some places are even as low as 1%. Among them, the vacancy period is very short. In addition, the Australian population has continued to increase, and leasing demand is rising. The Australian real estate market is more stable for investors, with more room for growth than in other countries.

Stable real estate market

Many buyers will worry about whether there is a sound legal system to protect them when choosing to buy homes overseas. After all, overseas property investment in Australia is not cheap. The overall transparency of Australian real estate is the third best in the world, second only to Britain and the United States. Both local and overseas buyers enjoy unified prices with high transparency.

The Australian real estate market has stabilised and is healthy. In the past three decades, Australian properties have obtained an average of 7% yearly return on investment. This is closely related to the Australian government’s real estate control, so local Australian property can always be in short supply.

For example, if the Australian government feels that the population inflows in a certain area in recent years, more approved house construction permits will be needed to increase the number of properties in this area. If the Australian government feels that the population flow in a certain area is slowing down, it will reduce the approval of new properties accordingly. This can ensure that the houses in the region are in short supply correspondingly to ensure the stability of real estate buyers in Australia.

It is easy to make overseas property investments in Australia

Compared with many other countries, making property investment in Australia particularly easy. The transparency of Australian real estate rules and regulations is simple and allows anyone to buy Australian properties easily. In addition to the easy investment, managing properties in Australia is also very simple.

Most property management companies in Australia can assist overseas investors with all matters relating to the property.

These property management companies in Australia are supervised. Due to competition between each other, most Australian property management companies will provide professional services at reasonable costs.

Foreigners can also have permanent business rights, with no inheritance tax

In Australia, foreigners invest in specific types of real estate. Australia also welcomes foreigners to have permanent business real estate and enjoy owning the same real estate as locals. In addition, foreign investors have no price restrictions, which is not the case in many other countries.

For example, in Vietnam, foreigners can only have leased property. In Thailand, foreigners have no right to purchase real estate. And in Malaysia, foreigners can only buy real estate priced at RM$1 million.

As for inheritance tax, in Britain it is up to 40%. In the United States, if you die your heirs will also be charged 18% to 40% of the heritage tax. As for Canada, there is no heritage tax on the surface. Though if a person with a lot of assets dies, there will be a lot of taxes and fees to pay. Under Canadian law, a death is deemed the same as a sale. It means that the assets under the name of the person who died are liquidated, and the value-added part of all assets must be reported.

Hong Kong’s high property prices make it difficult for young people to get on the property ladder. They may try investing in the Australian real estate market to enjoy sound legal protection and high rental return. The property price in Australia is much lower than that in Hong Kong. 

If you want to know how to choose different property types when buying a property in Australia, please see this video of mine:

Alison’s Story

Born in Hong Kong an moved to Australia, I have been associated with real estate all my life. As the plane slowly landed on the runway of Melbourne Airport, my life and career also changed to another runway. I changed from a Hong Kong real estate agent to an Australian real estate agent, and successfully obtained the Australian lawyer qualification.

When I was working in a law firm, I was surrounded by highly educated professionals. Even though their wages are very well, and they are absolutely the elites in society, but their lives are full of hard labor, and it’s hard for them to get rich through buying properties.

So I spend all my time and effort on learning financial and real estate investment knowledge, hoping to achieve financial freedom as soon as possible, and let my parents who have worked hard for many years live a good life.

Now I will share with you the knowledge and experience of investing in Australian real estate, and embark on the road to financial freedom together.

Alison Australian real estate information platform

The original intention of Miss Alison to establish is to provide neutral Australian real estate information through this platform and help investors establish the most suitable investment strategy.






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