How much to invest?
What to Buy & How Much?
How Much You Need to Buy Real Estate in Australia?
It’s important understand the financial requirements crucial for a successful property investment.
First, let’s consider the types of property you want to explore investing in.
Australia offers a diverse range of property types to cater to
different investment strategies and preferences:
Residential Apartments and Houses
- Ideal for first-time investors and those seeking rental income.
- Located in urban centers with high demand for housing.
Commercial Buildings
- Suitable for long-term investments with potential for higher returns.
- Includes office spaces, retail units, and industrial properties.
New Developments (Off-Plan and House & Land)
- Invest in pre-construction projects with the potential for significant capital appreciation.
- Benefit from modern amenities and prime locations.
- Tax depreciation benefits
- Foreign Investment Review Board (FIRB) approved purchase
Vacation Homes
- Perfect for investors looking to capitalise on the tourism market.
- Located in popular holiday destinations with high rental demand during peak seasons.
After you understand what you’re looking for and what you are eligible to buy as a foreigner or
Australian resident, it’s then time to know your budget.
Here’s some of the costs you’ll need to consider:
RESIDENTIAL
Off-Plan
10% Deposit to secure home
10% + Stamp Duty (5-12%) + Unconditional mortgage at time of completion
House & Land
20% Deposit + Construction Loan approval Stamp Duty (5-12%) + Unconditional mortgage at time of purchase
Existing
20% Deposit + Stamp Duty (5-12%) + Unconditional mortgage at time of purchase
Point: FIRB fees apply to foreign purchases. We recommend independent legal advice.
COMMERCIAL
30% Deposit + Stamp Duty (5-12%) + Unconditional mortgage at time of purchase
*conditions to be reviewed by independent lawyer*
In addition, for some property types or specific Buyer’s needs, you’ll need to consider:
- Buyers’ Agent Fee
- Legal Frees
- Tax & Finance advice fees”
Here’s some things to think about when investing:
Initial Investment: How much do you currently have? What’s your budget? As a guide, you can expect to pay the following – as everyone’s situations and lending options will vary – this is why we recommend starting with a conversation:
Residential properties: 20% deposit.
New Developments: 10% Deposit (Start investing with as little as SGD $80,000 for Off-Plan properties in prime locations).
Commercial Buildings: 30% deposit
Additional Costs:
Initial Property Advising Fees: From SGD $1000 - $2500 you can unlock access to a wide range of strategies with Property NXT.
Stamp Duty (Australian Residents): Varies by state and property value, typically around 5% of the purchase price.
Additional Foreign Duty (Foreign Purchases): In addition to 5% Stamp Duty, foreign investors will pay 7-8% Foreign Duty.
Legal Fees: Approximately AUD $1,800 - $3,000 for conveyancing and legal documentation.
Financing Costs: If opting for a mortgage, consider interest rates, loan fees, and ongoing repayment obligations.
Financing Options: Property NXT partners with leading financial institutions to offer competitive mortgage rates and flexible financing solutions tailored to your needs based in both Singapore and Australia.
Projected Gains on Property Investment
What Our Clients Are Saying
Australian property has grown an average of 5-6% YoY over the past 30 years according to CoreLogic data.
The percentage varies city by city, state by state but if invested smartly with specialists, you can expect to see returns at some capacity in Australia’s stable economy that inclue:
Capital Appreciation
Historically, major Australian cities like Sydney, Melbourne and Brisbane have seen annual property value growth of 5-8%, driven by demand and limited supply.
Rental Yields
Residential properties typically yield 3-5% annually, providing a consistent income stream alongside property appreciation.
Long-Term Gains
Over a 5–10-year period, investors can expect significant capital growth, making Australian property a solid foundation for wealth building.
Market Resilience
Even during economic fluctuations, the Australian property market has demonstrated resilience, maintaining steady growth and demand.
Benefits of Owning Property in Australia
Investing in Australian property offers numerous benefits that enhance both your financial portfolio and lifestyle. Australia’s real estate market is renowned for its stability, growth potential, and high demand. While many Australian Expats look to financial assets to invest in, we believe that building your property portfolio while overseas as well, is the best way to diversify your portfolio and maximise your return on investment.
Steady Capital Growth
Australia boasts a robust and resilient economy, providing a secure environment for property investments.
High Rental Yields
With a growing population and increasing urbanisation, the demand for rental properties remains consistently high.
Diverse Property Options
The Australian government supports foreign investments with transparent policies and incentives.
Quality of Life
Major cities like Sydney, Melbourne, and Brisbane offer exceptional growth prospects and infrastructure development. High growth regions like Sunshine Coast and Gold Coast are also seeing huge government investments in infrastructure.
Major cities like Sydney, Melbourne, and Brisbane offer exceptional growth prospects and infrastructure development. High growth regions like Sunshine Coast and Gold Coast are also seeing huge government investments in infrastructure.
Ready to Start Exploring?
Our discovery calls are casual conversations where we seek to get to know you and what you might be looking for. We can meet in person, on a video call or just a normal chat. Book it via Calendly today.
Contact Us for a Free Consultation
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Property NXT