Australian commercial real estate has always been a safe investment, especially when it comes to commercial real estate. For decades, the Australian economy has thrived on raw materials exported to large economies like China, India, and Japan. As all three of these countries are currently experiencing continued economic growth, the demand for raw materials remains high. This factor makes Australian property an appealing choice for investors looking to diversify their portfolios while still maintaining stability in an uncertain international climate.
Let’s take a look at some reasons why you might want to invest your money into commercial real estate in Australia:
1) A Strong & Steady Economy
The Australian economy is stable and growing every day with low unemployment rates, which equate to less available commercial properties on the market. This is great news for investors looking to purchase commercial real estate, as there are fewer options available than there have ever been before.
2) Education & Innovation
Australia is one of the top 5 countries in the OECD for education excellence, which means students who attend a university within Australia have strong educational prospects after completing their studies. As many international companies rely on graduates to fill positions within their businesses, these graduates will likely look towards working in Australia following graduation, resulting in greater demand for housing and other necessities. The more people willing to work within an economy, the higher chance of economic growth over time.
3) Diversifying Your Portfolio
With Australia experiencing low unemployment rates and economic growth, it is prime time to enter the commercial real estate market. This means that fewer investment dollars are necessary to purchase properties, making it easier for investors on a budget to gain exposure within the Australian economy. Another reason why this might be an appealing option for investors who are looking to diversify their portfolios would be due to Australia’s attractive rental yields of between 5-9%.
4) Foreign Investment Opportunities
The Australian government introduced new legislation to make it easier for foreign investors to purchase commercial real estate within Australia. This is important as it makes buying up property more accessible and opens up investment opportunities across various industries.
5) Tax Benefits For Investors
Australian commercial real estate provides many tax benefits that are unavailable in other countries. This means you can save a lot of money when purchasing a property. Another advantage to consider would be depreciation which allows investors to decrease their taxable income by claiming depreciation on buildings.
In conclusion, investing in Australian commercial real estate is the right choice for any investor looking to put their money into a large industry with an attractive yield. Australia’s economy is growing, and this means that investing funds within the local market will allow you to make more profit over time, which is ultimately what every investor looks for.