Following the Knight Knox International’s exhibition team’s first ever attendance at an Australian property exhibition, the North West investment firm can report that interest from Australia is indeed high, after taking over 89 enquiries in the three-day show.
Two main factors are being identified as the reason for this upsurge. The first of which is the costly nature of the Australian property market which freezes out many of its own home-grown investors.
Identified in the 2013 Annual Demographia International Housing Affordability Survey as the third most unaffordable major market, properties across Australia continue to experience rises in price.
So much in fact, that the house price index for 8 major cities in Australia rose by 2.6% during Q1 2013, with a surge of 8% in properties in Darwin, an upscale of 6.1% in Perth and a rise of 3.6% in Sydney, according to the Australian bureau of statistics.
The second reason behind this rise in Australian investment is the continuing depreciation of the Australian dollar causing many to put their money in UK Stirling and property, allowing them to both secure their funds and gain financial rewards.
The value of the Australian dollar has been dipping dramatically since April
The value of the Australian dollar has been dipping dramatically since April, with the IMF reporting that the dollar has depreciated by around 10% since; this is just one of a series of major drops the dollar has experienced, it also fell by about 7 per cent between May and mid-June and falls such as this, are another reason behind the upsurge in interest in the UK property market.
Alasdair Mcdonald, a member of the Knight Knox International exhibitions team spoke of the rising interest from Australian investors, which he saw direct evidence of at the Sydney Homebuyer and International Property Investor Show.
Alasdair commented: “When discussing potential investment options with Australian investors their true feelings come to the fore, they expressed that there is no country that they would prefer to invest in more than the UK because of the security and also because they are investing in pounds sterling, as well as generating a steadily increasing income on the net rental side. Also as an overseas investor they will be paying zero capital gains tax and be taxed considerably less on their rental.”
The Knight Knox International Exhibitions Team will continue exhibiting on their first visit to Australia on August 23rd at the Homebuyer & Property Investor Show, Melbourne.
Investors are urged to come along to the three day event which comes to a close on the 25th of August, to take advantage of exclusive offers the team will be offering in the UK buy-to-let and student accommodation market at the event.