Australian Real Estate: A Profitable Landing for Vietnamese Investors!

As globalization reshapes our world, Australia has emerged as a hot spot for real estate investment, offering unique benefits amidst global economic fluctuations and challenges. The Australian real estate market not only demonstrates timeless stability but also provides sustainable, long-term investment opportunities for smart investors. Let's explore the advantages of choosing Australian real estate as a Vietnamese investor with ClickClick.

1. Consistent Increase in Property Values

Statistics show that the value of real estate in Australia typically doubles every 7 years. In recent decades, particularly in Melbourne since 1966, the average time for property values to double has been 7.4 years.

For instance, if you bought property in 2005 for AUD 430,000 and sold it in 2007 for AUD 615,000, you would have made a profit of AUD 185,000 in just two years. That's a 43% return on your initial capital, demonstrating how investment in Australian real estate can significantly increase your asset value over time.

2. Permanent Ownership Rights for Investors

In Australia, up to four people can co-own a property with equal rights. The Australian government allows foreigners to own property permanently, a move aimed at attracting investment from developed countries into the real estate sector.

See more: Understanding Real Estate Investment for Vietnamese Citizens in Australia

Australia boasts five cities among the top 50 most livable cities in the world: Perth, Melbourne, Sydney, Brisbane, and Adelaide. This is due to their moderate climates, safe and civilized societies, high-quality education, and excellent social security.

3. Rental Potential and Passive Income

The real estate sector in Australia is continually attractive to international investors, including those from Vietnam. With a strong economy, transparent legal policies, and developed infrastructure, Australia is the ideal place for those looking for real estate investment opportunities, especially in rental properties to generate passive income.

In recent years, a surge in immigration and international students has kept the demand for housing high, often outstripping supply. In 2023, we saw rental prices reach a record high of 10.2%, averaging $555 per week, while the vacancy rate dropped from 3.1% to just 1% in September. If you're in a position to invest, you can leverage these conditions to find properties with attractive rental yields.

4. Financing Options for Buying Property: Capital Flexibility

Instead of spending a large amount upfront to buy a property, opting for a loan allows you to only pay 30-35% of the property's value upfront, keeping 65-70% of your capital free for other profitable investments.

For example, a 4-bedroom, 2-bathroom house in Australia priced at AUD 500,000 would require a significant upfront payment if bought outright. However, with a loan, you only need to pay AUD 175,000 upfront, keeping AUD 325,000 to invest elsewhere. Depending on the loan package, interest rates in Australia are lower than those in Vietnam, ranging from 3.53% to 6.0% per year. Thus, annually, you would pay between AUD 11,472 and AUD 17,438.

With AUD 325,000 in capital, investors can engage in profitable ventures in Vietnam, such as real estate flipping, stock investments, or starting new businesses. Ideally, the profits could double or triple within 1-2 years, leading to significant gains over six years.

5. Migration Opportunities:

Additionally, owning property can aid investors in applying for residency visas or other types of visas in Australia, showcasing their financial capability and commitment to the country.

For example, parents wanting to send their children abroad for education often consider buying a property near educational institutions to mitigate accommodation costs and ensure safety for their children, proving to be a vital investment over a few years.