Where would you prefer to buy ? Pelican Waters or Paris - what $ 1 million will buy you around the world
While we can ’ t travel , it is still fun to daydream about the rest of the world , particularly their cheaper property prices . While Australia ’ s house prices continue to rise , you may be wondering whether you could find better value buying something in one of your favourite holiday destinations .
Australians are property obsessed and particularly like investing in property . But the places in which we invest are overwhelmingly in Australia and we are generally wary about looking too far afield . Unlike investors from China , who represent the biggest group investing offshore , who look far and wide for opportunities . We have a much stronger preference to stick closer to home .
As well as being nervous overseas buyers , we are restricted from buying in many countries . New Zealand has completely banned overseas buyers . In Thailand , foreigners can own an apartment but are forbidden from owning freehold land . Elsewhere , there are far fewer restrictions . In the United Kingdom , anyone can buy , even if you don ’ t live there . It ’ s a similar situation in the United States . In Cyprus , they will even throw in a passport , although you do need to spend at least € 300,000 in a government approved new development .
The final challenge is getting finance . Australian banks are not keen on providing finance to offshore purchases of residential property . And it ’ s difficult to get finance from foreign banks . If you want that Paris apartment , it might be best if you have the cash available .
Assuming you have overcome your nervousness about buying overseas , have saved up lots of cash over the pandemic and have found a country that allows you to buy , what types of properties could you afford to buy ?
It ’ s hard to compare pricing at a global level , particularly given within a capital city or country , there can be significant variance in properties available . On a sqm basis , Turkey is the cheapest country to buy in , while Switzerland and Luxembourg are the most expensive . But in the United Kingdom , cities like London would have precincts that are potentially far more expensive than Switzerland .
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