The weak Australian dollar is tempting Aussie expats into investing in property back home in Australia.
With money earned from their jobs overseas, Australians abroad are increasingly looking to invest in property in Australia armed with their stronger buying power.
A lot of property purchases from expats while they are still working overseas are for them to eventually move into when they return back home.
Vicki Laing is a real estate agent in Sydney and she spoke to Property Observer.
“We expect given the low Australian dollar, that this summer will see many more expats actively looking for a property back here in Sydney,” she said.
“There are great buying opportunities for cashed-up expats given the softening state of the Sydney market.”
The Australian dollar is sitting just above the US70c mark after being in the US90s not that long ago.
Economic forecasters say they won’t be surprised to see the Australian dollar sitting in the US60s for most of 2016.
While increased expat buyer activity in Australia has been noticed in pocketed areas of the real estate market, not all real estate agents have seen any change.
Robert Simeon from Mosman Richardson & Wrench is one such agent who hasn’t yet noticed increased activity form expat property buyers.
“I would like to say that the expats are back in strength given Australia’s currency is now at a six year low however that’s simply not the case,” he told Property Observer.
“With the Australian dollar weaker, property is around 25% cheaper than the A$0.94c it was just 24 months ago for those who are paid in foreign currencies.”
Vicki Laing however said Aussie expats are cashed up and ready to buy.
“They have the preparedness to offer local vendors either short or long-term settlements which suits both parties,” she said.
Ms Laing said that often the expats actually don’t need the house immediately and are keen to rent it back to the vendor.