Many people are looking to get there feet wet in the Australian property market and many of these people are international. As an international investor there are a few things you need to know before you can begin your investment process.

First off do you qualify to buy property in Australia? If you are looking to purchase an established property then you must show proof of residency for at least 12 months, or you can go in with a partnership with someone who is a resident.

If you do not qualify as a resident then you can purchase property that is being newly developed. As for taxes you usually have to pay something called a Stamp Duty which is around 0.3% – 2.5% of the purchase amount. You may also have pay an annual land tax on property you own depending on how much it is worth.

The rental yields from investment depending on the property grade is very competitive even on an international level, yields between 3.5% – 5%. Most investment grade property is located in large Australian cities, particularly Sydney, Melbourne, Perth and Brisbane.

Invest in the stuff that’s not so shiny. High rises may seem appealing but they often come with a lot of expenses for maintenance and when it comes time to sell or rent they often receive a lot of competition. Compare this to low rise living where maintenance cost are low, demand is high for affordable living, and there is a higher land content value.

Property investors in Australia should target apartments which are at least 50 square metres in size, townhouses with a private courtyard and small to middle sized houses with a separate living room and an outdoor area. If you’re an international investor looking to invest in Australia be sure to study these facts!