The number of expats and other non-residents interested in buying investment property in Australia is rising. Home Loan Experts’ data showed a 100% rise in expat enquiries for investment properties in January 2023, compared with the lowest point in 2022. A further surge of 34% was noted from January to February 2023 alone.
Reopened borders and increased immigration have encouraged expats and other non-residents to purchase local property. Investors looking to capitalise on the rental boom have preferred Brisbane, Perth and Adelaide so far, due to higher rental 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 of mortgage broking, Bhisan Raj KC, said.
“This is in line with feedback we have been getting from some of our buyer’s agents and we expect this trend to continue. Investors are interested now. Mainly because the rental market is heating up. They think it is a good time to look to lease their property.
“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
Expats and non-residents have confidence in the Australian property market, as it has performed well over the last 10 years. Australia handled its economy well throughout the COVID-19 pandemic, with wage stability and ultra-low interest rates giving confidence to investors.
The Australian economy is doing better than the global economy in general. Rental returns are good so investors can hope to make strong rental income for a few years and eventually sell for a good capital gain.
Foreign investors showing interest in the property market have high incomes and are primarily from the UK, US, China and some parts of Europe. Chinese buyers dominated foreign investment in Australian homes in the six months to December 2022, with $1.6 billion in purchases approved.
Buying A Home Loan As An Expat
Aussie expats can take a home loan and borrow up to 90% of the property value if they have a good job overseas. Expat lending policies are complicated, so it is best to contact experienced brokers with specialisation in expat home loans to get the best deal.
Expats seeking home loans will face a more complicated process than Australians who reside here. Expats may find that lenders perceive them as a higher risk and banks may shade their income, reducing their borrowing power. Australians purchasing a home while living abroad or having just arrived back in Australia should contact a broker with expertise in expat or non-resident home loans to help them navigate the process.
Click on the following links to learn more about applying for loans while living in various countries.
- Australians living in the US
- Australian expats in the UK
- Australian expats in China
We Are Here To Help
A home is an expensive purchase and not being in Australia to make the decision might add pressure or uncertainty. At Home Loan Experts, we have experienced brokers specialising in helping expats, foreign citizens and other non-residents secure a home loan. We will assess your situation, guide you through the process, and help you find the best loan for you. Call us on 1300 889 743 or fill in our free online assessment form today!
