Wednesday, December 10, 2014

Invest in the Australian property market as a non-resident…

Overseas investors are free to purchase properties in Australia for speculation purposes. It is becoming quite popular to invest in Australian properties and can look for greater returns that might not be available in their countries. This is becoming an attractive option in the reality market for investors including for those who are residing in Australia and are visa holders. 

Such investors can borrow loans up to 80 percent of the value of the property but having stable income earning in Australia. Such borrowers might be required to face stricter rules but are sure to invest in Australian properties.

Stability of property
The property market in Australia has a proven record of stability. Housing is such a volatile commodity of the economy which can drop sharply even up to 70 percent within a few weeks, leaving investors to incur substantial losses. Unlike the recent trend in Hong Kong or USA, where the properties have suffered enormous losses, Australian properties are quite stable, and it is not heard at all in the history of properties in Australia.



Nothing to hide even the Global Financial Crisis has seen the falling of properties significantly in USA and UK during 2009/2010. More than past 100 years Australian properties have not seen any fall in the housing properties, rather properties in some pockets have recorded increase in prices of the real estate during the worst period of the economy.

Strong Growth Performance
One must understand the basic philosophy behind the stability of the properties. Australian population is increasing at a faster rate compared to the relative increase in the housing sector which has been facing acute shortage of dwellings resulting in the doubling of the prices roughly in every decade.

Great Place to Live in Australia
Almost every corner of Australia is worth living with its natural beauty, magnificent beaches, reefs with tranquil Blue Mountains and stunning coastal lines. These features add to the higher returns of the residential and commercial properties with excellent returns.
Global investors feel attracted towards the development of hotels, resorts and commercial properties.

Buying in Australia – Guidelines for Foreign Ownership
Managing Australian properties and asset, while living overseas is a welcomed asset. The property industry knows how to assist investors in acquiring the properties and managing the tenants in apartments. Government regulations are well insured to protect the rights of the landlord and to ensure the highest standard of building quality.  

Most of the properties are with freehold title, but you must be aware of certain important rules and regulations that get followed strictly.

Purchasing Guidelines
Any Australian residents and citizen can buy the properties. The Foreign Investment Review Board (FIRB) controls and regulates the sale of such properties to foreigners. There is practically no restriction, but some rules have to be complied up on. Foreigners can purchase any residential project or apartment, vacant land (construction beginning within a year period), commercial properties under AU$50m. This is controlled by selling off the property with the expiry of your visa with the consent of FIRB. 

Foreign nationals and Investors Corporation can buy any property within above-mentioned category and regulations. In the case of established properties, foreign investors would be required to spend an additional amount of 50% on its improvements or other construction with the prior approval of FIRB.

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