• TOP-RANKING STR MARKET IN OCEANIA

Millions of tourists visit Australia each year due to its natural wonders, iconic attractions, and rich biodiversity. Thanks to this, there’s a steady demand for short-term rentals, especially in popular tourist destinations like Sydney. In fact, we must highlight that it’s one of the top trending travel spots for international travel according to Airbnb.

Besides, Australia ranks among the top STR markets in Oceania with the highest occupancy rate. Moreover, you can also find some of the best Airbnb property management companies, teaming up with them will allow you to enjoy more freedom to explore this haven!

• RESILIENT REAL ESTATE MARKET PERFORMANCE

Although house prices are rising in Australia, the market remains relatively stable and strong. The economic resilience and demographic increase the country has been experiencing plays an important role in the demand for housing. Moreover, there are plenty of great real estate financing options that investors can take advantage of!

While the real estate market in major and popular metropolitan areas is expensive, there are many high-growth suburbs in Australia where you can find more friendly budget options. These suburban areas also offer good rental yields and have high occupancy rates that guarantee a nice return on investment to investors.

• ROBUST ECONOMIC DEVELOPMENT

Australia is usually regarded as an attractive country for living, working, studying, and investing. Thus, it consistently ranks among the top countries when it comes to economy. The country has one of the highest GDP per capita in the world and also a top among the world’s largest 20 economies!

Australia stands as a thriving business hub, drawing investment from multinational corporations, startups, and research organizations globally! The country offers a business-friendly environment, characterized by favorable regulations and low taxes. 

Thanks to its favorable economic conditions, Australia features a strong job market that has consistently maintained relatively low levels of unemployment. Currently, the unemployment rate in Australia is 3.7% as of October 2023.

Cons of Buying a Property in Australia

Aside from the pros of buying an investment property in New Zealand, let’s discuss some cons so you can know what to expect when investing and living in this country. It’s always better to look at the two sides of each coin to properly set your expectations!

• REAL ESTATE: HIGH ENTRY COST

Australia’s real estate market remains stable and experiences consistent growth, but it also comes with its challenges and downsides. In this regard, we must mention that average housing market values across major cities in Australia are not particularly cheap. 

Moreover, entering and exiting the property market poses some financial challenges. Aside from the property prices, there are other high entry costs involved such as the stamp duty, legal fees, and real estate agent fees, Hence, investors should carefully evaluate the upfront investment needed.

• AUSTRALIA IS VULNERABLE TO CLIMATE-RELATED DISASTERS

Located in the southern hemisphere and the Pacific Ring of Fire, Australia is quite susceptible to natural disasters such as bushfires, floods, and cyclones. The region is characterized by being seismically and volcanically active.

Is Airbnb legal in Australia?

While understanding Airbnb’s essential metrics is vital, it’s equally important to know about the legality of Airbnb in your target area. In general, it’s legal to become an Airbnb host in Australia! Yet, you should keep in mind that each state has its own STR regulations. Broadly speaking, most cities require hosts to register their properties to obtain a license for operating.

If you are a foreign investor or a temporary resident seeking to acquire property in Australia, then you will be required to obtain FIRB approval. Otherwise, proceeding with a purchase without approval may result in a variety of sanctions. Additionally, foreigners should keep in mind that the property must be new or they must acquire a vacant lot to build a new property. 

In the case of rental arbitrage, while it is legal, tenants are not permitted to sublease the property without the consent of the owner or landlord. 

It is extremely crucial to adhere to council zoning laws, otherwise, you can face consequences such as monetary penalties and being registered in the Exclusion Register.

Best Australian Suburbs to Invest in STR Properties