Thinking of investing in Australian property? Leading buyers agent reveals all
This article is written by guest contributor, Helen Tarrant. Helen is a leading Australian buyers agent who specialises in helping foreign investors access Australian commercial property investments.
Investing in Australian property is no longer a little-known secret. International investors from countries such as Hong Kong, China and Singapore have seen the incredible opportunities available ‘down under’ for many years, particularly in the commercial property sector.
However, when it comes to bouncing back after a global pandemic, many first-time investors can be hesitant taking this new step into an unfamiliar market.
While it may seem like a scary time to invest in Australian real estate, as a leading commercial property specialist and buyer’s agent, I can tell you that now is the ideal time to make your move. With high commercial yields, bountiful investment opportunities and lack of competition, 2022 will be a prime opportunity to obtain a great deal and invest in a space that would otherwise be highly competitive.
The true benefit of investing in the Australian market now is that there is a large gap post COVID-19 lockdowns, whereby local buyers are fearful of further shutdowns and tenant redundancies. However, if you are willing to play the long game on your investment, and have the monetary backing to enter the space and be prepared to hold through the next 2-3 years as the local economy recovers, you will be in the prime position to win both on the cash flow and capital growth front.
When it comes to what you should be looking for when investing in the Australian commercial property market, I always like to tick off the ‘ABCs’.
When many people start looking to purchase investments in a new country, they are often very excited and buy “hot” properties such as glitzy new apartment buildings or shopping centres, expecting immediate returns.
However, where international investors can really set themselves apart, is in purchasing properties that are tethered to strong tenants.
Those who have no desire to move or uproot any time in the immediate future and will be looking to stay a strong ‘anchor-tenant’ for many years to come. Not only does this give you peace of mind if you’re not able to travel and visit your property often, but also ensures you are getting that guaranteed income from your tenant on long-term loans, whilst the value of your property continues to increase.
If you can afford to, make a big property footprint. If you can manage to buy a whole building or floor in the CBD, you should.
Regardless of what type of building it is, as the owner you can always reconfigure your commercial property to make it suit the current market or tenant needs.
Having bigger blocks sets you up for long-term success and ensures much bigger returns and capital gain over time as the pressure for rental increases goes up. It’s all about having the control to do what you like with the building and determine your own tenant mix by leasing out to the tenants you want.
If you’re looking for that next investment, focus your attention on the major metro state cities including Sydney, Melbourne, Brisbane, Adelaide and Perth.
If you can, pick areas where there are high volumes of foot traffic. If you look at recent examples of what’s rebounded after COVID-19 lockdowns, this should give a pretty good indication of where to invest.
You will be surprised to know some of these are not the CBD but strong performing suburbs on the fringe or outskirts of the city. If you know the area will always make a comeback, it’s worth making the investment. Don’t think about what looks good now, but what will be the right property type in 10 years’ time and always have that ‘city’ appeal.
If you are thinking about getting started in your commercial property journey, it is incredibly important to have someone on the ground to assist you and build confidence as you go through that transaction. Always speak to a local buyer’s agent who understands the landscape and do plenty of research to ensure you make the best decision for your investment.
For further information on investing in Australian property, or to contact Helen Tarrant to start your commercial property journey, visit https://helentarrant.com/.