The Australian Bureau of Statistics' investment statistics show that Australia remains a key destination for overseas investment. Over the past year, foreign investment in Australia has increased by more than A$92 billion. International remittance inflows have been growing at a significant rate, boosting the number of trusts in Australia.
All is not well, inflation and interest rates continue to rise. In spite of this, the strong and stable position of Australia's real estate sector gives confidence that strong investment growth will continue into next year.
Inflationary pressures and a global rise in interest rates mean that cross-border investors will be looking for a shoeless haven for their money. Accordingly, in Australia, real estate is taking on the role of such a haven. This market is huge, with many assets available and nice rental terms that are indexed for inflation.
By investing in Australian real estate, foreigners insure themselves against inflation. Rental property yields good returns and they have remained steady, while the growth of industrial real estate has been fuelled by the growing need for e-commerce centres.
Australia was ranked third in JLL's latest Global Real Estate Transparency Index, well ahead of competitors in the Asia-Pacific region. What can we say, Australia has political stability and an excellent reputation.
The popularity of Australian trusts
Australian trusts are popular for many reasons; they have distinct advantages in management, as well as being a tax-efficient transit mechanism.A trust structure is tax-efficient because tax is paid by the unit-holders or beneficiaries at their basic tax rate.
When it comes to family trusts, buying through one is a common way to invest in real estate in Australia given the protection it offers. The structure of the trust is beneficial, and this is where the benefits outweigh the cost of setting up and administering the trust.
What are the benefits of setting up a family trust?
This type of trust provides an opportunity to share income annually among family members. It is more tax efficient and helps minimise the tax liability of each member.
A significant advantage of owning property in a family trust is that the property is owned by the trustee and not by an individual. This means that this type of investment is protected from creditors, even if one of the beneficiaries goes bankrupt.
An Australian family trust provides a unique structure for the transfer of family assets from one generation to the next, with no costs or stamp duty.
International remittances for family trusts
The family trust is a viable strategy for many foreign investors. This strategy becomes even more attractive when foreigners have chosen which method of transferring money to Australia they wil utilise. After all, a reliable and low-cost method of money transfer is essential.
This should be a major consideration as moving money between countries can be prohibitively expensive because of foreign exchange risks and the cost of remittance.
For the last few years, a popular way to send money to Australia to open a family trust is with a low cost digitalprovider. The Flash Payments provider is well established in the Australian market and has assisted overseas investors with thousands of international money transfers over the years. Transfers to open a family trust in Australia are no exception. The specialist team at Flash Payments will help you transfer funds reliably and 99% of the time at the lowest cost. Check them out before you use your bank again.You can find out more here: https://flash-payments.com/