Australia boasts a stable economy, high standard of living, and diverse natural beauty, making it an attractive destination for tourists and property investors alike. In this article, we'll discuss the benefits of investing in Australian property and the mortgage options available through GMG.

1. Rental Income Potential

One of the main benefits of investing in property in Australia is its strong rental market. There is a high demand for rental properties, particularly in popular tourist destinations like Sydney, Melbourne, and the Gold Coast. According to Domain Group, the rental yield for apartments in Sydney ranges from 3.5% to 4%, which is considered high compared to other major cities such as New York and London. In Melbourne and the Gold Coast, rental yields can range from 4% to 5%, depending on factors such as location, property type, and seasonality. Additionally, the Australian government has implemented policies to support the rental market, such as tax incentives and subsidies for landlords.

2. Price Appreciation Outlook

Another advantage of investing in property in Australia is its potential for price appreciation. While property prices in some parts of Australia are already high, there are still many areas that offer more affordable options for investors. According to the Domain House Price Report, property prices in Australia have been increasing steadily over the past decade, with a 22% increase from 2011 to 2021. In Sydney and Melbourne, property prices have increased by an average of 6-7% per year over the past decade, according to CoreLogic. Additionally, the Australian government has implemented policies to encourage foreign investment in the real estate market, such as offering tax incentives for long-term investors.

3. Low Cost of Living

Australia is known for its high standard of living, but it also has a relatively low cost of living compared to other developed countries. This can make it an attractive option for investors who want to keep their expenses low while managing their properties.

Mortgage Options for International Investors

GMG offers a range of mortgage options for international investors looking to invest in property in Australia. With a team of experienced mortgage advisors, GMG can help investors find the right mortgage for their needs. GMG offers both fixed and variable-rate mortgages, and investors can choose from a range of repayment terms.

In addition to mortgage options, GMG also offers a range of other services to help investors navigate the Australian property market. This includes legal and tax advice, property management services, and assistance with the purchase process.

Overall, Australia offers a lot of potential for property investors looking for a stable market with strong rental demand and the potential for price appreciation. Sydney, Melbourne, and the Gold Coast, in particular, offer investors the opportunity to invest in growing tourist destinations with world-class attractions and stunning natural beauty.

If you're interested in investing in property in Australia, GMG can help you navigate the market with our range of mortgage options and other services. Our experienced mortgage advisors can help you find the right mortgage for your needs, and we work with trusted partners to provide you with access to a wide range of properties across Australia, including in popular tourist destinations such as Sydney, Melbourne, and the Gold Coast.

Whether you're a seasoned investor or a first-time buyer, we can assist you every step of the way. From identifying the right investment opportunity to securing financing and managing your property, GMG is committed to helping you achieve your investment goals in Australia. To learn more about our financing solutions for foreign national investors, please contact us at [email protected].

France has always been a popular tourist destination, but in recent years it has also become a hot spot for property investors. With its rich cultural heritage, beautiful landscapes, and world-renowned cuisine, France offers a lot of potential for those looking to invest in property. In this article, we will explore the benefits of investing in property in France and the GMG mortgage options available for investors.

Rental Income Potential

One of the main benefits of investing in property in France is its strong rental market. There is a high demand for rental properties, particularly in popular tourist destinations like Paris, Cannes, and Nice. According to SeLoger, the rental yield for apartments in Paris ranges from 3.2% to 4.2%, which is considered high compared to other major cities such as New York and London. In Cannes and Nice, rental yields can range from 3.5% to 5%, depending on factors such as location, property type, and seasonality. Additionally, the French government has implemented policies to support the rental market, such as tax incentives and subsidies for landlords.

Price Appreciation Outlook

Another advantage of investing in property in France is its potential for price appreciation. While property prices in some parts of France are already high, there are still many areas that offer more affordable options for investors. According to the National Institute of Statistics and Economic Studies, property prices in France have been increasing steadily since 2015, with a 3.9% increase in 2021 and a 3.8% increase in 2022. In Cannes and Nice, property prices have increased by an average of 4-5% per year over the past decade, according to French Property. Additionally, the French government has implemented policies to encourage foreign investment in the real estate market, such as offering tax incentives for long-term investors.

Low Cost of Living

France is known for its high standard of living, but it also has a relatively low cost of living compared to other developed countries. This can make it an attractive option for investors who want to keep their expenses low while they are managing their properties.

Mortgage Options for International Investors

GMG offers a range of mortgage options for international investors looking to invest in property in France. With a team of experienced mortgage advisors, GMG can help investors find the right mortgage for their needs. GMG offers both fixed and variable rate mortgages, and investors can choose from a range of repayment terms.

In addition to mortgage options, GMG also offers a range of other services to help investors navigate the French property market. This includes legal and tax advice, property management services, and assistance with the purchase process.

Overall, France offers a lot of potential for property investors looking for a stable market with strong rental demand and the potential for price appreciation. Paris, Cannes, and Nice, in particular, offer investors the opportunity to invest in growing tourist destinations with world-class attractions and stunning natural beauty. With GMG's mortgage options and other services, investors can navigate the French property market with confidence.

Get in touch with us to learn more about investing in France, properties available to purchase through our partners and about GMG's financing solutions for foreign national investors today at [email protected].

5 Reasons why Japan Real Estate Is a Good Investment 

In recent years, Japan has become an attractive destination for property investors due to its stable economy, low crime rates, and high standard of living. With its rich cultural heritage, stunning landscapes, and bustling cities, Japan offers a lot of potential for those looking to invest in property. In this article, we will explore the benefits of investing in property in Japan and of course GMG mortgage options available for investors. 

1. Surprisingly High Rental Income Potential 

One of the main benefits of investing in property in Japan is its strong rental market. There is a high demand for rental properties, particularly in popular tourist destinations like Niseko. According to Japan Property Central, the rental yield for apartments in central Tokyo ranges from 4-5%, which is considered high compared to other major cities such as New York and London. In Niseko, rental yields can range from 4-8%, depending on factors such as location, property type, and seasonality. Additionally, the Japanese government has implemented policies to support the rental market, such as tax incentives and subsidies for landlords.

2. Price Appreciation Outlook

Another advantage of investing in property in Japan is its potential for price appreciation. While property prices in some parts of Japan are already high, there are still many areas that offer more affordable options for investors. According to the Japan Real Estate Institute, property prices in Japan have been increasing steadily since 2013, with a 2.7% increase in 2021 and a 2.9% increase in 2022. In Niseko, property prices have increased by an average of 3-4% per year over the past decade, according to Niseko Property. Additionally, the Japanese government has implemented policies to encourage foreign investment in the real estate market, such as relaxing visa requirements and offering tax incentives for long-term investors.

3. Low Cost of Living 

Japan has a reputation for being an expensive country, but it also has a low cost of living compared to other developed countries. This can make it an attractive option for investors who want to keep their expenses low while they are managing their properties. 

4. Mortgage Options for International Investors 

GMG offers a range of mortgage options for international investors looking to invest in property in Japan. With a team of experienced mortgage advisors, GMG can help investors find the right mortgage for their needs. GMG offers both fixed and variable rate mortgages, and investors can choose from a range of repayment terms. 

In addition to mortgage options, GMG also offers a range of other services to help investors navigate the Japanese property market. This includes legal and tax advice, property management services, and assistance with the purchase process. 

Overall, Japan offers a lot of potential for property investors looking for a stable market with strong rental demand and the potential for price appreciation. Niseko, in particular, offers investors the opportunity to invest in a growing tourist destination with world-class skiing and stunning natural beauty. With GMG's mortgage options and other services, investors can navigate the Japanese property market with confidence.

5. GMG Concierge Program

We have a large list of exclusive secondary properties in Tokyo and Yokohama with very good return profiles which can be shared with you upon request.

Meanwhile we have extensive relationships with real estate developers with new projects which we can show as well in Niseko, Tokyo and Kyoto.  

Get in touch with us to learn more about access to our property portfolio as well our Japan mortgage options for foreign national investors at [email protected]. 

Note: From March 14-19, we will be showcasing single-family homes near Dallas, Texas, for sale. Starting at $390,000, these are great starter homes for those looking to build their investment portfolio. They are even more attractive when you take advantage of our 75% financing and property management services. Click here to sign up or learn more.

In the report, we want to highlight why Texas is an attractive state to own an investment property in. 

Many know Texas as the home to many famous sports teams and a popular 80s soap opera.

However, it's also the state that has been the most gentrified over the past few years and will continue to, in our opinion. Texas has an underappreciated diverse, and robust economy, with numerous industries, including oil and gas, technology, healthcare, and manufacturing. This has resulted in job growth and a steady influx of new residents, which drives housing demand.

Let's start with our 5 reasons to own investment property in Texas

1. Strong Economic Growth: 

Over the past decade, Texas has also consistently ranked among the fastest-growing states in the U.S., driven by a number of factors, including a business-friendly environment, a growing population, and a diversified economy – all positive factors contributing to a strong real estate market. 

Texas has outperformed the national average in terms of GDP growth.  

Insight: The Bureau of Economic Analysis, as of 3Q2022:

Real GDP growth rate for Texas was 8.7% vs. the national average of 3.2%. 

Personal Income growth +6.9% vs. national average +5.3%! 

People in Texas are seeing their wages grow more, and their companies are growing faster than the rest of the nation by a long shot!

2. Affordability:

Compared to other major U.S. cities, Texas cities like Houston, Dallas, and Austin are generally more affordable in terms of housing costs, which can make them attractive to investors looking to get more for their money.

Texas has a lower cost of living than the national average, which can make it an attractive destination for people looking for a more affordable place to live. 

Insight: According to data from the Council for Community and Economic Research, as of March 2023, the cost of living in Texas was approximately 8% lower than the national average.

Mostly from housing, 15% lower, Food, 9% lower, Transportation, 7% and Healthcare, 4% lower than the national average. 

Housing costs, in particular, tend to be more affordable in Texas compared to many other parts of the country, which can be an important consideration for people looking to buy a home or rent an apartment.

3. Business-Friendly Environment: 

Texas is known for its business-friendly environment, with low taxes, a favourable regulatory climate, and a pro-growth mindset which now leads the nation in the number of Fortune 500 companies that have made the state their headquarters.

In just 2021 alone, 62 companies relocated their HQs to Texas from 17 other states and 3 countries, with Tesla being the most notable.

This steady stream of businesses and corporations relocating to the state brings with them jobs and new residents.

There is no individual income tax in Texas and no corporate income tax. State sales tax of 6.25% is also lower than the national average of 8.20%.

4. Landlord-Friendly State:

Texas is known for its strong protection of property rights, which can be attractive to landlords. 

Quick eviction: Landlords have a legal right to evict tenants who fail to pay rent or violate the lease terms with a quick eviction process compared to other states, which can be helpful to landlords who need to regain possession of their property quickly.

Limited tenant protections: Compared to other states, Texas has relatively few laws protecting tenants' rights. For example, there is no limit on security deposits, and tenants have limited legal recourse if their landlord fails to make necessary repairs.

Freedom to set rent: Landlords in Texas have the freedom to set their own rent prices without being subject to rent control or other restrictions.

5. Strong Rental Market: 

Texas cities have strong rental markets, with demand driven by a combination of population growth, job growth, and a relatively high number of renters compared to homeowners. 

This can make investing in rental properties in Texas a lucrative option.

Insight: According to data from Zillow as of February 2023, the median rent in Texas increased by 5.8% over the past year and will continue to increase to 8.4% as of May 2023, according to the Dallas Fed report. 

I hope this report helps shed some light on why Texas has been and will continue to be one of the most popular states to own an investment property in.  

As we mentioned at the beginning of this report, we are bringing brand-new single-family homes in Dallas, Texas, through Asia from March 14-19. If you want to learn more, please click this link and register.

Real Estate Capital Gains Tax - A Global Comparison

This week, in our "Wealth Planning" series, we analyse and compare the capital gains tax for the major real estate investment destination countries. This is a follow-up article from last week's "Global Stamp Duty Comparison."

This week we take a closer look at the real estate market and the capital gains tax in 13 countries around the world:

Australia France Japan Spain USA

Canada Hong Kong Portugal Thailand

Dubai Italy Singapore United Kingdom

What is Capital Gains Tax?

Capital gains tax (CGT) is a tax levied on the profit from selling an asset, including real estate. The rate for foreign national investors in 2023 can vary between countries and may also depend on the specific circumstances of each transaction. 

Global Comparison

Here's a list of Capital Gain Tax for the countries we offer mortgages to:

Australia: In Australia, the CGT rate for foreign nationals is determined by the investor's marginal tax rate, which ranges from 0% to 45%. A discount of 50% is available for individuals and trusts if they have held the asset for more than 12 months.

Canada: In Canada, 50% of a capital gain constitutes a taxable capital gain, which is included in the corporation's or the individual's income and taxed at ordinary rates.

Dubai: There is currently no personal income tax in Dubai. As such, capital gains tax is not imposed on UAE nationals or resident individuals.

France: In France, the CGT rate is 30% plus exceptional income tax for high earners at 4%.

Hong Kong: Hong Kong does not have a CGT on real estate.

Italy: Capital gains are subject to separate taxation at 26% (normal PIT rate applies in certain instances).

Japan: In Japan, gains arising from the sale of real estate property are taxed at a total rate of up to 39.63% (30.63% for national tax purposes and 9% local tax), depending on various factors.

Portugal: 50% of capital gains arising from the sale of real estate by tax residents and non-tax residents in Portugal are taxed at marginal rates varying between 14.50% and 48% (plus the solidarity rate, if applicable).

Singapore: In Singapore, the CGT is not applicable to the sale of residential property.

Spain: In Spain, the CGT rate is 26% for residents and 19% for non-residents.

Thailand: Capital gains on the sale of investments derived from or in Thailand by a foreign company not carrying on business in Thailand are subject to a tax of 15%, withheld at source by the purchaser, unless otherwise exempt under a DTT.

United Kingdom: The rate of CGT is 10%, where the total taxable gains and income is less than £37,700. Any excess gains are taxed at 20%. Where business asset disposal relief applies, the rate of tax on the whole gain is 10%, subject to a £1m lifetime allowance.

United States*: In the U.S., the CGT rate is 0%, 15%, or 20%, depending on their tax-filing status. Individual taxpayers will not pay any CGT if their taxable income is $44,625 or below. If their income falls between $44,626 to $492,300, the CGT rate is 15%. Above $492,300, the rate increases to 20%. A flat tax of 30% is imposed on U.S. source capital gains in the hands of non-resident alien individuals physically present in the United States for 183 days or more during the taxable year. 

*How to Defer Capital Gains! 

“1031 Exchange” is a type of tax deferral strategy used in the United States for real estate transactions. It allows investors to defer paying capital gains taxes on the sale of a property by "exchanging" it for a similar "like-kind" property. The idea behind this strategy is that investment in real estate can continue to grow tax-free until the final sale, when taxes are ultimately paid.

In Summary 

Real estate can be a valuable investment, providing a place to live and the potential for capital gains. Currently, some of the top markets for real estate capital gains include the United States, Canada, Australia, and the United Kingdom. The global real estate market in each of these countries offers its own unique opportunities and challenges, and a range of factors, including economic growth, interest rates, demographic trends, and government policies, influences it. 

At Global Mortgage Group, we understand the complexities that international investors face when it comes to capital gains tax. We provide tailored advice to meet our client's specific needs. Our team of experts is dedicated to providing personalised solutions to help our clients maximize the return on their investments while minimizing their tax liabilities.

Contact us today to learn more about how we can help you get the most out of your capital gains tax and learn all about GMG's financing solutions for foreign national investors at [email protected].