 Guide
to Property Investments in Australia
Price values in the Australian property market took a fall from 2004
to 2005 and have been struggling to recover ever since. Some are predicting
that the market is close to stabilizing and that now may be the time
to invest “Down Under.”
A large percentage of the Australians own there own home (over 70%).
This leaves a large market for rental property. Rentals also serve the
business community and tourism industry as well. Rental yields are climbing
and the average to date is around 6%.
The policy for foreigners purchasing property in Australia is a fairly
strict one. It requires that approval of the Foreign Investment Review
board (FIRB). The Board examines proposals and makes recommendations
to the Government about whether the sale should proceed. Foreigners
who are in Australia for an extended period of time will still need
to get approval from the FIRB.
Temporary Residents that have gotten permission to purchase property
but are preparing to leave the country will not be able to keep the
property they purchased with the permission of the FIRB. Arrangements
will have to be made to sell the property unless the origional property
was vacant land that has been developed.
Foreign Nationals do not need approval when purchasing property through
an Australian incorporated company or unit trust.
Because of the restrictions for purchasing property, foreigners are
advised to get FIRB permission before signing any agreement to purchase
(the exception would be a purchase agreement that stipulates FIRB permission
would have to be granted for the agreement to be valid).
Most transactions fees are split evenly between the buyer and the seller
(when the totals are figured). They can run anywhere between 4% and
21% of the purchase cost. Typically the seller will pay the entire Agent
fees and half of the Conveyance fees. The buyer pays the cost of the
Stamp Duty, registration fees and half of the conveyance fees. It is
always advisable to invest in legal advice when entering into any type
of financial agreement.
Where to buy property in Australia
The Move Channel has a good selection of property for sale across Australia:
The
Move Channel
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Newsletter:
5 March to 12 March 2010 - Struisbaai, Western Cape, South Africa
