Question for optional or for anyone from Australia

[arie1985]

Not sure if it belongs to Saloon or here, it's about investment but not from the kind of gambling lol... so I was wondering is it worth nowadays for foreigners to invest in Australia?

I know optional is from there but I'm asking seriously, I know foreigners can only invest in new developments, so if you buy in Sydney (NSW) under $800k AUD you pay no land tax, you still pay high stamp duty + 32.5% rental tax but you can deduct many expenses (they call it Strata there + water + anything related, Skype calls etc. etc.)

Interest rates are about to go down, so property prices might go up again, Australia has a pretty solid economy, is Sydney a good place for investment despite the high 32.5% tax rate on the rental? (you do get it offset in your country of residence so it's not like this money goes in vein, it's tax credit)...

[Optional]

The property market is in a small lull due to interest rate uncertainty and a fair few people being caught with very low honeymoon interest rates resetting to high variable spot rate in the last couple of years.

I purchased a house to renovate and rent out or flip about 6 months ago thinking it was a prime time to buy. So I agree there is opportunity.

I would be very comfortable investing in Sydney if I could afford it. As the demand is not slowing and economy is very resilient compared to most others even if some new global disaster comes into play. 800k is not going to get you a lot if it has to be a new development though.

As far as that tax rate and rules for foreign investment I have no idea really.

[arie1985]

Thanks optional.

I found some new developments for early 2026, for instance in Rockdale NSW, Fox Lane, $600k - $650k for 1 bed, so it's not a bad price in comparison and it's a new development... What do you think?

[hehfest]

Australia is a LOCK. Go all-in!

[Optional]

There are a lot of units around there. I'm not so sure you would pull the rental needed to fully service a 600k mortgage from a 1 bedroom place.

I'm all about positively geared investments personally.

Although I guess you are limited in that respect when have to invest in new buildings only.

[arie1985]

Although I guess you are limited in that respect when have to invest in new buildings only.

Yes, it is a drawback unfortunately, however long term 10-20 years it could be a good deal, maybe also with prediction the AUD as a currency can go high due to China's role in the world.

[Optional]

Oh I am sure you will make bank over that time period.

I'd hate to imagine what an apartment will cost in Rockdale in 20 years time. Multi millions at a guess.


And yes the currency is at a low rate compared to recent history, so you gain extra value from your foreign currency too in the end probably.

[arie1985]

Oh I am sure you will make bank over that time period.

I'd hate to imagine what an apartment will cost in Rockdale in 20 years time. Multi millions at a guess.


And yes the currency is at a low rate compared to recent history, so you gain extra value from your foreign currency too in the end probably.

I totally agree, and thanks, the only annoying thing here is the stamp duty really:

https://stampduty.calculatorsaustralia.com.au/

It's super expensive, to add $70,000 AUD to the price of what you pay, but my wife for some reason thinks it's still a good investment, despite this heavy tax...

You gotta do what the wife says, huh?