| Owning Property in Australia |
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Owning property in Australia is a goal for many residents and a strategy for many international investors. Whether for residential, commercial or purely investment purposes, there are many options for owning property in Australia. Below are Healy Consultants services and information to equip investors with information related to owning property in Australia.
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1.
| Owning property in Australia is appealing to so many due to its quality of life. This is supported by research from Mercer Human Resource Consulting. Mecer ranked Sydney, Melbourne and Perth in the top 5 cities within the Asia Pacific for living standards in its 2009 Quality of Living Survey. Sydney was ranked 10th out of 215 cities globally, Melbourne and Perth ranked 18th and 21st respectively.
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2.
| Owning property in Australia requires payment of taxes. The tax system in Australia can be quite in depth and so it is beneficial to have professional advice on this area. Healy Consultants provides professional tax and accounting advice to investors to ensure all tax obligations are met and tax incentives are taken advantage of. Detailed information on the Australia taxation system can be found on the Australian Taxation Office website. Two important aspects to consider are: | |||
i)
| Capital gains tax is payable in Australia, but there are variables for this. For example, owning the property for more than twelve months means only half of the capital gain is taxable.
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ii)
| The incentive of negative gearing. This is where an investor borrows to acquire an investment but the interest payments and other costs to the owner are more than the income received via rent. The difference between the amount of rent received and the expenses incurred is tax deductible. | |||
3.
| Non-resident buyers are generally permitted to own property in Australia 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 or redevelopment of property must begin within 24 months of purchase.
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4.
| Despite strong affinity with Australian real estate, the current economic environment has weakened sentiment for owning property in Australia. Interest rate cuts by the Reserve Bank of Australia (RBA) and government initiatives such as the first home buyer boost are strategies to help avoid a crash in the property market.
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5.
| For foreign individuals interested in owning property in Australian, application must be made via the Foreign Investment Review Board (FIRB). The FIRB is a non-statutory body established in 1976 which provides advice to the Government on policies related to foreign investment. Their role is to protect Australian citizens while at the same time allowing investment which benefits communities within Australia.
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6.
| There is a diverse range of options for owning property in Australia. From holiday destinations in Queensland, to Australia's two largest commercial hubs in Sydney and Melbourne, different property options can be found to suit the needs of investors. One option for investors looking for a unique getaway is to buy a private island. As an example, Smooth Island is located near Tasmania and is currently for sale at a price of A$1.65million (US$1.1m).
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7.
| According to the 2009-2012 Residential Property Prospects report by BIS Shrapnel, average residential house prices in the Australia real estate market are forecast to rise as much as 22%. Among the capital cities, Sydney, Melbourne and Adelaide are forecast to show the strongest price growth at 19% over the next three years. Based on the statistics mentioned in the report, owning property in Australia will become expensive in the future; therefore, now is a prime time to invest in Australia real estate. |
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8.
| The property management services provided by Healy Consultants make life easier for investors owning property in Australia. By using our firm to manage services such as organizing property maintenance and refurbishments, security, property valuations, finding tenants and ad hoc problem solving issues, clients save time and money, allowing them to focus on their business and families. |
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9.
| Arranging property finance is an important step in the process of owning Australian property. Healy Consultants will source financing options, including international mortgages, and recommend the most appropriate alternative for the needs of our client. Leading international banks including Commonwealth Bank, ANZ Bank, DBS Bank and OCBC Bank are preferred for obtaining mortgages. |
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10.
| Appointing and supervising a local lawyer is another process managed by Healy Consultants to assist our clients with their objective of owning property in Australia. Using an experienced lawyer helps avoid any issues in the purchase process and allows the strengths of local laws to be utilized to protect asset ownership for foreign investors. |
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11.
| Healy Consultants project manages the entire process to help clients achieve their goal of owning property in Australia. Apart from managing the steps in the process of purchasing their property and providing property management services, our firm assists clients who are migrating to Australia to gain the relevant visas, coordinate relocation services and familiarization with their new country. |
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| Contact Us | ||||
For further information on owning property in Australia, call us in Sydney at +61 280 147 568 or contact us at email@healyconsultants.com
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