With the falling Australian dollar, property investment back home has become an extremely attractive proposition for expats working overseas, with many desperate to take the plunge.
However according to anecdotal feedback, there are those who mistakenly believe the acquisition and management of a quality property portfolio in Australia is beyond their grasp and off-the-plan purchases, the only alternative.
This is hardly surprising given that the only real estate companies on the ground in the bulk of Aussie expats hubs are project marketing companies selling over-priced off-the-plan Australian property to overseas markets.
Sadly the fallout from this type of investment – which generally involves apartments in high-rise towers – is that these properties have little to no growth potential over the medium term and can be difficult to rent out, given the current glut of apartments in cities like Melbourne and now increasingly Brisbane.
While expats are generally savvy investors and understand that off- the-plan property is not in their best interests, some are desperate to capitalise on the falling dollar and in the absence of quality advice and property options, settle for second best and fall prey to these purchases.
It is important to remember that effective investing and property portfolio management for expats is no different to that for people living in Australia, particularly if their affairs are being managed by a specialist property investment advisory company, such as Performance Property Advisory.
We source and purchase properties on investors’ behalf, manage this property, regularly review it and in some cases, recommend disposal of under-performing assets.
Unlike your traditional property managers, we also ensure properties are inspected four times a year, builders conduct a maintenance report every two or three years – frequency of inspection that should put the minds of any concerned expat investor at rest.
Other great news for expat investors is that we will be running investment seminars for expats living in the Middle East, pockets of Asia and the US. These seminars aim to educate would-be investors about market conditions and the best approach to property investment in Australia.
We now have around 50 expat investors on our books and are fully expecting that number to double within 12 months given the very high level of inquiries from overseas.
Our current expat investor clients are located in Hong Kong (the biggest concentration), NY, London, Shanghai, India and the Middle East. They are primarily time-poor professionals, interested in high quality, high growth established investment properties that are easy to rent and attract good tenants.
Performance Property Advisory recently secured coverage on this very topic in the Australian Financial Review. Follow this link for the full story.