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Expat property investment decisions: Buy a smaller property or your forever home?

Expat property investment decisions: buy a smaller property or your forever home?

As an Expat who is planning to eventually move back to Australia, you may have a lot of questions in mind about buying property.

“Where should I buy?”
“What’s the best home type to suit my needs?”
“When is the best time to purchase?”

However, the biggest question I get asked by Expats is:

“Is it best to buy a cheaper investment property to lease for now or opt to purchase a forever home?”

It’s a great question and here’s my answer.

Weighing up your property investment options

As an Expat, making property decisions like this can greatly affect your investment outcomes in the future.

For instance, a smaller investment home can provide some extra income if you decide to lease it in the meantime and may potentially earn some capital growth. You can hold onto this investment property for a while or you can sell it to purchase your forever home when you arrive back in Australia. With this option, you at least are ‘in’ or have some exposure to the Australian property market.

The other option is to invest in your forever home now, buying it remotely from where you’re living right now.

This choice tends to be more expensive than the first option and it can be more of a personal choice that requires more careful research. But this offers more potential for greater growth, as its value will progressively appreciate until you return.

What it comes down to is your budget, your goals and your plans for the next few years.

So, have you taken the time to think about these two options?

Picture this scenario.

As an Expat, you purchase a $1.2 million Australian investment property. It earns some rental income and increases in value due to capital growth over the next couple of years. You’re ahead and then, when you plan to return home, you can decide what to do with it – either hold it as an investment or sell it to use the proceeds to buy your forever home.

However, instead of buying that $1.2 million Australian investment property only to sell it when you get back (leaving you with selling fees and Capital Gains Tax), you may decide to buy your forever home for, say, $3 million and let it appreciate to $4 million when you return. This may suit you better and will spare you from another round of stamp duty tax.

The most important thing is to consider your current situation and financial circumstances when deciding which choice is best, as it will all boil down to your finances and preferences.

To make sure you decide on the best option for you, speak to a professional financial advisor. They can assess your financial situation and can help you make the best decision.

Whichever your decision, a Buyer’s Agent can help you

Whichever path you choose, as an Expat, it’s difficult to buy property when you’re not physically in the country – even with digital technology today.

You need someone to represent you and be your eyes, hands and ears on the ground. A Buyer’s Agent is someone you can depend on when buying property remotely as an Expat.

As real estate experts, we perform due diligence and provide you with in-person insights you need to make well-informed decisions. No matter what you’re looking for, a Buyer’s Agent can help you choose the right property based on your property goals.

Speak to a Buyer’s Agent you can trust

A Buyer’s Agent should be someone you can depend on to help you make the right property investment decisions.

So, make sure they have your best interests at heart when they’re looking through different homes and discussing your property options based on their professional advice.

A Buyer’s Agent with proven expertise is great but what you also need to look for is someone who will listen to your property investment preferences.

How Porter’s House helps Expats buy property

Porter’s House has been a trusted partner in Australian property investment and real estate services for over 20 years.

We provide our clients with a strategic, skilled and personal approach when solving your property needs. 

We value every transaction that our clients make because we understand that purchasing a property, whether for investment or for personal use is an emotional and personal experience.

Achieve your property goals remotely with a Buyer’s Agent you can depend on.

For expert property purchasing services specifically tailored for you, contact Porter’s House today – +61 411 202 685 or cameron@portershouse.com.au.

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