Newsletter: “Am I buying at the right time in this market?”

Hi,

For many Australian expats, the question right now isn’t if you should invest back home—it’s:

“Am I buying at the right time in this market?”

Recent data from Cotality highlights something important:

In some parts of Australia, the cost of owning an investment property (particularly units) is now comparable to—sometimes even less than—renting.

While this is more relevant domestically, it signals a bigger shift:

The gap between rental returns and property values is tightening

Why this matters for expat investors

• Rents have increased significantly (up 5.5% over the past year)

• Vacancy rates remain tight (~1.5%)

• Some unit markets are seeing more supply, keeping prices stable

This combination is improving rental yield potential—a key factor for investors.

The opportunity right now

We’re seeing:
Strong demand at the entry-level end of the market
Investors returning (+31.8% year-on-year)
Lower-priced properties outperforming higher-end markets

This is creating a competitive but opportunity-rich environment for investors.

What expats often overlook

Even in a competitive market, there are still ways to enter strategically:

5% deposit schemes (in certain scenarios)
2% deposit options with select lenders
Strong lender appetite for well-structured expat deals
The ability to leverage Australian income and assets effectively

The key isn’t timing—it’s structure

In today’s market:

• Good properties are moving quickly

• Competition is strong

• Lenders are more selective

Which means your success comes down to:

• Being pre-approved and ready

• Choosing the right location and asset type

• Structuring your loan correctly from the outset

The long-term view

While short-term costs may look similar to renting, the long-term benefit remains:

Australian property values have increased ~44% over the past 5 years
Adding approximately $280,000 to the median dwelling value

As an investor, this is where wealth is created.

Let’s position you properly

At Australian Expat Finance, we specialise in helping expats navigate:

• Lending requirements from overseas

• Structuring investment loans correctly

• Identifying opportunities in a competitive market

Considering purchasing an investment property in Australia?

Adam Kingston
Co-Founder & Director
Australian Expat Finance

Let’s ensure you’re positioned to act with confidence in this market.