The Australian Property Market is very different to the fast paced and mass construction environment that is found in Dubai today. Many years of steady population growth and a diversity of styles and locations has seen Australia develop a strong and stable property market that adequately meets the needs of the Australian based and foreign investor alike.
It is common for international investors to consider Australia as an option to include in their property portfolios due to its consistent growth, stable market and high standard of construction.
Australia does impose a buying restrictions on Foreign Nationals that do not have approved Permanent Resident Visa status. The restriction acts to limit the property purchased to new property.
According to Steve Douglas, Chairman of aussieproperty.com, this is done as a protection mechanism and to ensure maximum financial benefit to the Australian economy as a whole.
“By directing Foreign purchasers to new property, substantial jobs and activity is created as well as ensuring a steady increase in the accommodation pool” Mr Douglas said, “it also protects the local property market from excessive price competition on established housing, as most foreign investors would easily be able to out bid an Australian based buyer, not least because they will no doubt have the benefit of rental collection, making the acquisition easily affordable.”
Under the Foreign Investment Review Board guidelines, approval must be sought by any person, other than Australian Citizens or Permanent Residence Visa holders, when they intend to acquire a residential property. Provided that the property is recently constructed and no one has previously lived in it, then the approval is almost automatic and issued very promptly.
Under these rules, Foreign Nationals can acquire land provided that they commence construction of a dwelling within 12 months, apartments, newly completed houses, townhouses, villas or any other style of newly constructed dwelling.
Holding land without commencing construction is not permitted.
Importantly, when any property is acquired with the intention to develop or improve it, either for resale or to keep, then this is permitted provided a commitment to spend an additional amount of at least half of the original property price is undertaken.
Commercial or Rural property do not have the same restrictions, so any one can freely acquire interests in these type of properties.
These regulations have been highly successful in ensuring the Australian Market has maintained affordable and sustainable levels of growth over the long period.
It has also greatly benefited the standards of the construction industry as the consistency have allowed the development of many trade skills and educational programs that ensures only highly skilled and regulated tradesman work in the construction industry.
The directing of foreign investment capital towards new construction, has been a major contributor in the high quality of Australian property.
The Australian government has also ensured that the regulations supporting investment in Australia strongly protect the foreign investor.
The legal system ensures Freehold title to the owner, finance is readily available for up to 80% of the purchase price and there are many special tax incentives available to property investors that can ensure that no tax would be payable on their investment with proper planning.
Aussieproperty.com is a specialised Australian property website that focuses on the education and support of foreign based investors, intended migrants and Australian expatriates and was recently launched to satisfy the increasing demand for information on Australian property investment, and is free to access.
“The site is essential for anyone considering investing in Australia, we have developed special financial tools that easily explain the process from a financial and taxation aspect, as well as many valuable reports and statistics on all the various issues of acquiring property in Australia whilst abroad.” Mr Douglas added.
For investors looking for premium built quality, in a stable and strong long term growth market, then Australia is certainly worthy of investigation.