A Finance blog by Paul Bennion.
Australia’s population growth as a result of the influx of immigrants is having an increasingly positive impact on the property market, says DEPPRO Managing Director, Paul Bennion.
According to Bennion, the growing impact of overseas migrants on the property market has been a significant trend in the industry in recent years.
“Population growth is traditionally a key driver of the property market because it underpins demand for real estate. Immigrants now account for over 50% of total population growth in some areas of Australia. Not only do these people require rental properties when they first arrive in Australia, but down the track, they begin to buy their own homes and later, many purchase investment properties,” Bennion said.
“At DEPPRO, more than one in ten of our clients are immigrants who have arrived in Australia over the last decade. After financially establishing themselves, they have decided to buy investment properties to create long term wealth.”
Bennion warns however, that many immigrants do not fully understand the tax benefits available to them in Australia when they buy investment properties.
“For example, the tax laws relating to buying an investment property in the United Kingdom and Australia are very different, particularly in areas such as negative gearing and depreciation benefits. Any investor should seek the advice of a professional when it comes to maximising the financial benefit of their investment property,” Bennion said.
Locations favoured by overseas migrants moving to Australia
Source: Net Overseas Migration – ABS 2010/2011