The number of foreigners and other non-residents who are interested in purchasing an investment property in Australia is increasing. Home Loan Experts’ data revealed a 100 percent increase in inquiries from expats for investment properties in January 2023 as compared to the lowest level in 2022. A further increase of 34% was recorded between January and February 2023.
The opening of borders and the increase in immigration have enticed expats, as well as other non-residents from abroad, to buy local properties. Investors seeking to capitalize on the boom in rental properties have opted for Brisbane, Perth, and Adelaide at present because of greater rent yields.
“Most of the enquiries have been from people wanting to invest in property for rental income or invest for now and move into the property later,” Home Loan Experts’ general manager for mortgage broking Bhisan Raj KC said.
“This is in line with the feedback we’ve received from our buyers’ agents, and we anticipate this trend to keep going. Investors are now interested. Primarily because renting is getting hot, they feel it’s an ideal time for a property to rent.
“With immigration surging and people getting permanent residency, there are people on temporary visas, work visas, bridging visas to permanent residency, and so on, enquiring about a home to live in, too.”
Reasons For Surge In Foreign Investors
Foreigners and non-residents are confident in the Australian property market because it has performed very well in the past ten years. Australia was able to manage its economy through the COVID-19 pandemic with stable wages and extremely low-interest rates, ensuring confidence for investors.
The Australian economy is performing better than the world economy overall. The rental returns are excellent, and investors could earn solid rental income over the next few years and then eventually sell to make a profit.
Foreign investors who are expressing interest in the real estate market have high earnings and come predominantly from the UK, the US, China, and a few parts of Europe. Chinese buyers led foreign investment in Australian properties for the period from June to December 2022. $1.6 billion worth of purchases that were approved.
Buying A Home Loan As An Expat
Aussie expats can get a house loan and can borrow at least 90% of the property’s value if they hold an excellent job in a foreign country. Expat lending regulations are a bit shady, and it is recommended to talk to experienced brokers with expertise in home loans for expats to find the most affordable deal.
Expats who are seeking home loans are likely to face a different process than Australians who live here. Expats might find that lenders consider them to be a greater risk, and banks might cut their incomes, thereby reducing their borrowing capacity. Australians who are buying a home in a foreign country or who have recently returned to Australia must seek out an agent who is knowledgeable about home loans for non-residents or expats to guide them through the process.
