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Australia property investment has been popular avenue for Australians as well as international investors as a means of growing their assets. Healy Consultants independently assists clients to efficiently manage all legal, accounting, finance and tax matters relating to Australia property investment. Key factors of interest for international investors choosing Australia property investment include:

Australia property investment provides the incentive of negative gearing. Negative gearing refers to borrowing to acquire an investment but the interest payments and other costs to the owner are more than the rental income received. The tax incentive is that the difference between the amount of rent received and the expenses incurred because of the property are tax deductible. Positive gearing refers to where the income from the property exceeds the costs incurred by the owner and is often the long term goal of savvy investors.

The high quality of living in Australian Cities enhances the appeal of Australia real estate and migration to Australia. According to Mercer Human Resource Consulting, Sydney, Melbourne and Perth are 3 of the top 5 cities within the Asia Pacific for living standards in its 2010 Quality of Living Survey. Sydney was ranked 10th out of 215 cities globally, Melbourne and Perth ranked 18th and 21st respectively.

The Australian Government, through the Foreign Investment Review Board (FIRB), regulates the sale of Australian property to overseas persons and corporations. Australian citizens living abroad who are holders of permanent visas or entitled to hold a 'special category' visa can purchase property in Australia without being examined by the FIRB. The term 'non-resident' for lending purposes applies to a person who:

• Permanently resides out of Australia and is not an Australian citizen;
• Is an Australian citizen that has been living and working out of Australia for more than 6 consecutive months;
• Is not an Australian citizen but has been residing in Australia for less than 6 consecutive months.

International entrepreneurs and investors undertake Australia property investment across the different sectors of i) residential real estate if living in Australia, ii) commercial real estate to support business interests or iii) as a rental property to gain an income stream.

In summary, non-resident buyers are able to undertake Australia property investment in the following categories: i) Real estate for residential redevelopment, ii) vacant land, iii) home units, townhouses that have not been occupied or previously sold. Construction on vacant land, for example, must begin within 24 months of purchase.

Australian real estate prices are increasing as the availability of housing continues to remain tight, the Real Estate Institute of Australia states. Prices have actually risen sharply by 3.1% percent in the June Quarter 2010. Perth was the only capital city not to experience average price increases. Of these capital cities, Sydney had the highest increase at 4.9%, while Melbourne and Adelaide showed gains of 3.6% and 3.2% respectively.. The simple factor of higher demand than supply is contributing to price increases in the Australia real estate market.

At the moment interest rates in Australia remain static. This is predicted to last one month, as the Reserve Bank of Australia announced they will be increasing interest rates. This will therefore discourage buyers from investing in Australia real estate. By February 2011 if interest rates get as high as the levels anticipated by the financial markets (7.98 per cent), the same first home buyer would be paying $1,978/month or an additional $100/week.

Healy Consultants assists investors and entrepreneurs with all steps in the process of Australia property investment.  Our firm assists clients to save time and money on key aspects of purchasing Australia property and selling Australia property. Services provided include:

Developing market analysis of Australian real estate, current property market sentiment, currency & interest rate changes and their impact on Australia property investment. Reputable sources including the Australian Bureau of Statistics (ABS), Housing Industry Association (HIA) and RP Data are referenced to give accurate information.

Appointing and supervising a local lawyer is important to make sure the legal matters associated with Australia property investment are undertaken correctly.

Providing professional tax and accounting advice specific to Australia property investment to ensure all tax obligations are met. While Australia has some high taxes, there are also tax incentives available so gaining professional advice is beneficial.

Valuable property management services give clients the opportunity to save time and money by allowing our firm to project manage these activities. Such services include organizing property refurbishments and property maintenance, managing the process of finding tenants, arranging property insurance, organizing property valuations and sourcing for property security requirements.

Obtaining international mortgages to support Australia property investment. Our firm works with international banks such as the Commonwealth Bank, ANZ Bank, DBS Bank and OCBC Bank to obtain competitive property finance options.

Australia provides many options in real estate due to the sheer size and differing environments found within the country. A growing economy, a strong job market and the reductions in interest rates are positive aspects for the Australia property investment.

For further information on Australia property investment, call us in Sydney at +61 280 147 568.

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