The Australian dollar is a win win for overseas real estate investors
The recent fall in the Australian dollar to a record low is a win win for overseas real estate investors.
From an average of $0.85 in November 2014 the Australia dollar is fallen to (fluctuating by 15 cents) record low of $0.72 in September 2015.
This is great news for overseas investors who have had a windfall of over 10%.
Buying property requires a 10% deposit to secure the sale. An example purchase at AUD$500,000 with a AUD$50,000 down payment in November 2014 would have exchanged at USD$42,500.
The same transaction in September 2015 would have been USD$36,000 a savings of USD$6,500.
With many banks offering now 70% finance for overseas investors, the 30% equity required would represent a total savings of USD$19,500 or approx. AUD$25,350 or a huge 5% of a typical property investment of AUD$500,000
Overseas investment will slowly increase this year, as the confidence in the Stockmarket has turned speculative investors back to the security of bricks and mortar returns.
The Australian property market is without doubt in a high cycle with certain areas and individual opportunities offered ‘red flagged’ by UCHK Consulting as poor investments. There is an unprecedented level of stock available and identifying good priced stock is increasingly difficult.
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