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Returns on property investments to remain strong

Returns on foreign investment in Australian property are high.

Recent data released by ANZ Research shows that returns on foreign investment within the Australian property market are "well above those in other developed countries", The Australian reports.

Foreign direct investment (FDI) in both the commercial and residential property markets recently reached heights of seven per cent, compared to five per cent in other regions of the world, which is good news for anyone considering purchasing a property in the country.

Much of this is down to Australia's healthy natural resource sector, which continues to pull in huge amounts of foreign businesses looking to make a profitable investment.

In the first half of 2012, the Foreign Investment Review Board approved about $400 billion of overseas investments in Australia's natural resources, with natural gas accounting for some $90 billion.

The ability of the country to rely on natural resources means it is unlikely there will be any reduction in FDI over the next few years, ensuring the Australian property market remain popular with overseas buyers.

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