Lower Aussie dollar tempting expats to buy back home

Lower Aussie dollar tempting expats to buy back home
Lower Aussie dollar tempting expats to buy back home

The Christmas break is often a time when Australian expatriates buy properties back in Australia to eventually occupy as their home when their overseas assignments end. 

"We expect given the low Australian dollar, that this summer will see many more expats actively looking for a property back here in Sydney," estate agent Vicki Laing noted. 

"There are great buying opportunities for cashed-up expats given the softening state of the Sydney market."

The Australian dollar briefly dipped this year below US70¢ for the first time since April 2009, down from US81c in January 2015, and at US$1.10 in mid-2011. It was around 71c in mid-December.

Many see it going and staying in the 60s during 2016.

Vicki Laing said while the low dollar was having an emerging impact on the willingness of Australian expats to buy, there were many familial influences always motivating them to buy property in Australia including schooling issues.

"These are not influenced by the state of the dollar," she said.

Expat interest is beginning to emerge in select pockets highlighted in early spring when three of the five registered bidders for a Belle Manly auction offering were expats.

It sold for $4,550,000 under the hammer with the buyer from Singapore beating buyers from the UK and the USA for 8 Bower Street overlooking Cabbage Tree Bay.

But many agents aren't seeing any increase in expat numbers.

"I would like to say that the expats are back in strength given Australia’s currency is now at a six year low however that’s simply not the case," Mosman Richardson & Wrench agent Robert Simeon said.

 "With the Australian dollar weaker, property is around 25% cheaper than the A$0.94c it was just 24 months ago for those who are paid in foreign currencies," Robert Simeon noted.

Tags: 
Sydney Residential Market

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