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The Thought Process

Why do I need a property in Australia?

Home ownership This happens when a family has to migrate to Australia, either for family, work, or for other personal reasons. Most families would prefer to purchase a home, rather than rent, so that their family has a proper home to settle down.

Homeownership has shown much positive social and political contributions. Research shows that homeownership can improve the owners’ sense of commitment to community – especially through their readiness to invest in the home as an asset, as a place to live in and to raise a family. Homeowners are also found to have experienced higher levels of overall quality of life, which has likely contributed to the well-being of both the homeowners and their children in a variety of ways. For instance, children of homeowners tend to achieve higher levels in math and reading, and are found to have fewer behavioural problems. These factors, amongst others, help explain improved education achievement and higher lifetime annual incomes of the homeowners’ children. (Source: Haurin, Donald R., Toby L. Parcel and R. Jean Haurin 2001. The Impact of Homeownership on Child Outcomes.Low-Income Homeownership Working Paper Series LIHO-01.14, Joint Center for Housing Studies of Harvard University.)&Green, Richard K. and Michelle J. White 1997. Measuring the Benefits of Homeowning: Effects on Children.Journal of Urban Economics 41(3): 441-461.).

It has also been found that homeowners were more contented with their own personal situation than renters. (Source: Rohe, William M, and Michael Stegman 1994. The Impacts of Home Ownership on the Self-Esteem, Perceived Control and Life Satisfaction of Low-Income People.Journal of the American Planning Association 60(1): 173-184.)Thus, as proven by research studies, these have led to better physical and psychological health among homeowners. (Rohe, Willam M., Shannon Van Zandt and George McCarthy 2001.The Social Benefits and Costs of Homeownership: A Critical Assessment of the Research. Low-Income Homeownership Working Paper Series LIHO-01.12, Joint Center for Housing Studies of Harvard University).

Student For parents who are sending their children to study in Australia, they may want their children to have a comfortable home to live in, which is close to the university their children will be attending, and not too far away from amenities. This not only provides their children with a conducive environment to live and study, but also gives the child a sense of peace and security – without the headaches of moving rental houses and rental increases. Once the children graduate, they will also have a place to call home.

For the parents, having a place of their own at an overseas country not only gives them a peace of mind, knowing that their children have a proper place to live in, but also gives the parents a comfortable place to stay in when they visit their children in Australia.

If and when their children move out from the property, the parents can then rent the property - either to other students or to the general market. The parents will then be receiving rental income, instead of making mortgage repayments every month. The property can thus be converted into an investment property as an extra source of income for the parents. Our research will ensure that the rental vacancy for the area is low to ensure that the property can be easily rented out, and we will assist with finding a suitable property manager for a hassle-free property management.

Investment Australia’s strong economy and proven property market makes it an ideal investment proposition for any investor.

Why invest in Australian properties? One of the key reasons you ought to choose to invest in Australian properties is because of the solid growth history of Australian properties. Furthermore, this class of asset is less volatile compared with investing in other assets (e.g. shares), thus less risks for the investor. You are also in control of your asset – let it be to renovate, rent or eventually sell.

Several notes worth highlighting regarding property investment:

Leverage With the ability to leverage on others’ time, knowledge and funds, investing in property becomes a very simple yet rewarding process. This way, investors can also greatly mitigate the risks associated with investing.

Knowledge You can have the advantage of evaluating the necessary information before investing in a property which best suits your needs. Historically proven growth: The property market has shown a long history of solid appreciation trends in developed countries, including Australia.

OPM Other People’s Money – in property, you can obtain financing of up to 90%. Thus, the 10% you put into investing in a property can gain you up to 100% in ROI (Return of Investment)!

Scarcity In line with the fundamentals of supply and demand, the scarcity of property coupled with high demand will see property values soar.