Australian Investment Property
Australian Property Opportunity
Summary
- Off-Plan Properties at Discounted Prices
- Rental Guarantees
- Up to A$1500 toward legal costs
- Sought-After Sydney Waterfront Locations
Australian Property Market Conditions
Typically, all the properties marketed through our Agent have the prospect of strong rental returns and capital growth.
Following a boom in prices between 2000 and 2007, Australian property prices have stabilised and the market slowed down. Consequently, Developers are now offering significant deals to entice buyers and these take the form of discounts, complimentary memberships to exclusive facilities such as Golf Clubs and Country Clubs, or take the form of rental guarantees.
Investors buying properties in Australia are required to have a Foreign Investment Review Board (FIRB) approval prior to purchase. Most new homes have FIRB approval certificates, however the same is not always true for second user housing stock. (Exemptions are available for immigrants looking to purchase property prior to settling in the country.)
Finance
When buying new properties a fully refundable A$2,000 holding deposit is required to take the property off the market. In the case of off-plan purchases, this is followed by a further 10% down payment payable on exchange of contracts, with the outstanding balance being due on completion. The whole legal process takes between 8 and 12 weeks to complete on average.
Australian Mortgage lenders are lending up to 90% of the property value depending on status, and are currently offering rates of around 8%. Our Developers and local Agents can recommend the services of excellent local mortgage consultants who will assist you in sourcing and co-ordinating the acquisition of your Australian mortgage.
Typical Rental Yields
The most popular rental properties in Sydney are 1 and 2 bedroom apartments priced at between $300,000 and $700,000. As an indicator, properties valued at around $500,000 would expect to attract rents of around A$2,000 per month, plus, depending on their location.
Properties with waterfront, close to water, and with water views, typically attract higher returns and resale values.
Process For Purchasing Property
The process for purchasing Australian investment property is very similar to most developed countries, and involves the services of a conveyancer. A smooth process is ensured when using the services of a reputable selling real estate Agent.
Property purchase transactions can be conducted without the need for the purchaser to sign documents “in-person” on Australian soil.
