It seems that you just need to open the newspaper and there will be two conflicting articles on whether the timing is right for a property purchase. The reality is that in some areas of Australia property might be at a cyclical peak while in other areas property prices could be at a cyclical low.

You just need to look at Sydney and Perth. So while I believe Australian property is a good long term investment, it does not mean any property will be a good long term investment.

If property prices rise dramatically while you are away and history shows that prices can move very quickly at times , it may be very difficult for a non-property owner to get back in the market.

Rental Income Depending on how large your deposit is, and the type and location of the property you purchase, rental income can make a substantial contribution to the cost of holding the property. In limited circumstances it may be possible for your rent to exceed your expenses. Tax Benefits Australian Resident for Tax Purposes Tax benefits should not drive your investment decisions, but be seen as an added benefit to an investment — the icing on the cake so to speak.

The Australian tax system provides great benefits to those people investing in Australian property whether you are an Australian resident for tax purposes or not. If you remain an Australian resident for tax purposes, then you can deduct from your taxable income all of your financing costs and all the costs involved in maintaining and managing the property.

The Purchase of Australian Property by Foreign Residents | Exfin - The Australian Expatriate's Gateway

In Australia you are also able to depreciate the value of the building and improvements of your property. For more information on maximising your tax benefits of your rental property through depreciation, then click here for my article on the benefits of rental property depreciation. In this article I also include a special offer negotiated for readers of The Australian Expat Investor to obtain a depreciation report on their property.

Tax Benefits Non-Resident of Australia for Tax Purposes If you are not an Australian resident for tax purposes, then you may still claim all the deductions mentioned previously i. If in the event your deductions are greater than your Australian sourced income, then you can carry forward any tax losses to future income years. To understand more about the tax implications of moving abroad, download my special report — Tax Implications For Australians Working Abroad.

Investing in Australian Property Provides a Stable Investment Property prices do move in a cyclical manner and it is possible to lose money on a property investment , however the volatility in prices is much less than say shares , gold or foreign currencies. Relative to other loans eg.

Leverage provides you with the opportunity to have greater investment exposure to an asset with minimal contribution from your own funds. Obtaining finance as an Australian Expat is still possible, but it is getting harder. As a result you are best talking to a mortgage broker that specialises in loans for expats. Diversity All good investment strategies should include a diversified portfolio of investments.

If all of your investments are held in direct share investments, managed funds, or through your superannuation, you are unlikely to have any exposure to Australian residential property in your investment portfolio.

With the right property selection, an owner can add value to their investment by doing a cosmetic makeover, a major renovation to the house, sub-dividing the land, or landscaping the garden.

6 all-important tax issues you need to know when investing overseas

There are many ways an owner can add value to a property, that they cannot do with their share or managed fund investments. As an Australian Expat, it is still possible to buy and finance a property investment from abroad. Take the stress out of buying a property in Australia by working with Milk Chocolate Purchase Concierge. Milk Chocolate specialise in purchasing property and undertaking renovations for Australians living abroad.

They work exclusively for the buyer. Milk Chocolate offer a true concierge service, taking care of every last detail of your property purchase.

Wealth & Estate Planning | BNY Mellon Wealth Management

Using the latest technology, data and communicating in your time zone ensuring the experience is rewarding and enjoyable. This information is for educational purposes only and does not constitute financial or taxation advice. As this information is not advice and has been prepared without taking into account your objectives, financial situation or needs you should, before acting on this information, consider its appropriateness for your circumstances.

To the extent permitted by law, we exclude all liability for any loss or damage arising in any way. We may receive referral commissions from companies mentioned in this article.

Blog You are here: Building Wealth , Property 8 benefits of investing in Australian property while living abroad. Get Started On Your Property Search… Take the stress out of buying a property in Australia by working with Milk Chocolate Purchase Concierge. Craig Get my free ebook at The Australian Expat Investor - Free EBook. Craig is an Australian Expat and the founder of The Australian Expat Investor.

Craig is passionate about investing, and while Craig cannot give personal financial or tax advice, Craig enjoys sharing investing, tax, and other tips for Australian expats to help them to build their wealth while living abroad and get the most out of their time living overseas.

Get his free ebook on 9 Financial Surprises That Could Cost Australian Expats Thousands of Dollars at the link above. Latest posts by Craig see all The Dutch Healthcare System — What Expats Should Know - June 7, Quick Facts For Australians In The Netherlands - June 7, 5 Common Mistakes People Make Investing In Property - June 6, Like what you are reading.

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