With house prices rising, the Australian property market runs the risk of overheating. Rising house prices might jeopardize the financial stability and economics of the country. According to the American real estate agent Moody low interest rates fuel the rise of the housing price. This trend appears to be quite dangerous for the Australian housing market, since prices to income and prices to rent are well above the average. House prices continued to rise even in the second quarter of 2014, reaching the highest growth rate in nearly 5 years. Australians can’t afford to buy a house in bigger cities like Sydney or Melbourne due to strong mortgage buffers, low leverage levels and rigorous banking system.
Because of this USA property for sale is the hottest topic in Australia at the moment. Growing number of Australians decide to invest their money wise and look property for sale in the USA. Thanks to the low interest rates, Australians can buy two houses in the US for the price of one in Australia. However, you must be aware of investment scams. Sometimes a property might seem too good to be true. The disadvantage of buying a foreign property is that you cannot actually see the property thus thoroughly inspect it. You must rely on a good real estate agent who will work in your name. But even then, agents are not always familiarized with all the faults and defects a house might have.
But, there are more advantages than disadvantages of owning a foreign property. Australians invest in USA property for sale to increase their income tax. Those who own property overseas are required to withhold 30% of the gross income such as rents. Australians who have bought USA property for sale will be able to deduct expenses such as interest, depreciation, property taxes and common area charges. Another reasons Australians choose to invest in property for sale in the USA are low interest rates that kept falling in the last three years. It’s way cheaper for Australians to invest in US housing market at the moment.
Your dream to own a nice house in Florida can turn into a reality now. Since there are no foreign restrictions, Australians can invest in USA property for sale without problem. Just make sure you find a reliable real estate agent to help you choose an affordable property for sale in the USA. You are not obligated to show up in person. Your real estate agent will be able to seal the contract in your name. All you need to do is open a US bank account and fill out certain US tax related documents.