Australian Migration: Have You Covered All Your Bases?
Most people who consider relocation take the necessary steps to get a visa, and organise furniture removals, pet quarantine and so on – but sadly, they neglect one of the most crucial things they can do before they move which will give them a significant financial advantage on arrival.
It’s a shame that every day, people get on a plane to their new life in Australia without knowing how much money they could have saved before they got there.
There are significant benefits for people to invest in an Australian property PRIOR TO RELOCATION. Most people simply don’t know about them or even worse, they think they can’t afford it.
The fact is: They can’t afford not to.
Potential migrants can invest in an Australian property that will be rented out. Just by owning that property; you will reduce the amount of tax you pay each year and be able to build a sound financial base with income-producing assets.
As a potential migrant, you have a unique opportunity to plan ahead and find out what step you can take to ensure your financial security upon arrival into Australia.
How would you like to:
- Arrive in Australia knowing that you can save thousands of tax dollars in your first working year and every working year thereafter?
- Be secure in the knowledge that you have established an Australian credit rating. Lenders in Australia generally require migrants to have 2 years work history in Australia before they will give you a loan. By having taken this step, you will NOT have to resort to paying cash for everything.
- Know that you have established some Australian real estate and have learnt a bit more about how things are done in Australia.
- Be able to talk to the people you meet about your “Australian property”. Feedback from others has shown that this has given them comfort and gave them a topic of conversation that was easy.
- Have an Australian tax file number already organised, enabling you to qualify for investment tax deductions which will increase the amount of money that you receive every week compared to arriving with no property.
- Protect your Rand from further erosion and make sure that you have some funds tied to a strong currency.
Most people wrongly move to Australia thinking that they will be able to buy a home and get a mortgage as soon as they arrive. Unless you have been paying off something in Australia, you will NOT have Australian credit rating. Furthermore, opening an Australian bank account alone will not help you to establish an Australian credit rating.
Unfortunately, so many migrants arrive in Australia without any knowledge of these important facts and the steps that could have been taken to make their arrival more financially sound.
Did you know?
- If you own a property that is rented out in Australia, the Australian Government will significantly reduce the amount of income tax you pay annually
- You will pay little or NO tax on rental income
- You can buy a property in Australia whether you live there or not or whether or not you ever intend on migrated there
- You can open an Australian bank account from South Africa and deposit money into it and make withdrawals before you arrive
- You will be able to arrange a mortgage in Australia to buy Australian property BEFORE you live there, allowing you to establish an Australian credit rating
Too often people tell us that they will not buy an investment property before they depart because they want to be able to apply for the $7,000 Home Grant. However, by owning a property that is rented out, you will receive over AUS$7,000 every year for 40 years.
BUT WAIT, THERE’S MORE! As a South African individual, you may now use your R1million Single Discretionary Allowance for foreign investment purposes without having to obtain a SARS Tax Clearance Certificate. This opens up significant opportunities for those looking for ways to prevent further erosion of their Rand.
FACT: The Rand has lost 35% of its value against the Australian dollar compared to what it was 5 years ago. In the past 10 years, it has gone from 4.2 to 9.1 to the Australian dollar (that’s a 116% erosion to South Africans). This continuous downturn will harm your buying capacity internationally – there is no ‘catch up’ if you delay your decision to take action.
The moral of the story? Plan ahead and invest in Australian property now to maximise your wealth preservation prior to making the big move.
Foreign Exchange Application Form
Migrate 2 Oz is proud to offer our clients foreign exchange services in collabortaion with reputable associates. Through our associates, we are able to provide clients with a ‘one-stop-shop’ solution – saving the time and hassle of dealing with your bank, standing in queues and struggles through the process of moving money.
If you wish to require more information regarding Australian property investment, please contact us or if you would like to transfer funds to Australia then you can complete our foreign exchange application form below.