If you’re serious about migrating to Australia, you probably already know everything that needs to be done before the big move. The question is, however: How can you make your transition to Australia easier?
Most people are under the impression that they will get their visa, hop over to Australia, get a job, buy a house and settle down. Unfortunately, it is not as simple as that in reality. Unless you have a credit rating in Australia, you will be unable to get a loan from Australian institutions. This means that you will need to pay cash for everything for the first 6 months, you will have to pay cash for everything. These are critical months in a new country as you will have to make many important decisions without much time to think about it. You could even lose out on rental properties if you aren’t prepared to pay 6 months’ rent upfront.
How do you avoid such a situation? You can build up an Australian credit rating before you even start your visa application process by purchasing an investment property. Doing this will benefit you immensely, not just when you arrive in Australia, but in the long run as well.
Australia is a high-tax country. If you earn an income of $70, 000 a year, you will pay tax amounting to $15, 392. That is roughly 21%. Were you to own a rental property in Australia before moving, you would only pay $11, 024 tax on $70, 000 annual income. That is a saving of $4, 638! Take this saving into account over the long run and you will save a lot of money you would not have been able to otherwise. You will also own an income producing asset, which will continuously rise in value and save you tax dollars.
Buying an investment property before immigrating to Australia isn’t something you have to do, but it is something you should consider doing. It will make your transition noticeably smoother and save you the hassle of having to pay cash for everything.