Current Scenario for Real Estate in Australia

By: Jacqui Smith

It is a common scenario worldwide that any property bought by an individual as a long term investment always appreciates in value. The Australian property market is no exception with a recent survey noting that in Australia investors have made remarkable gains on property investments.
According to the survey, in Australia over 90% of property investors surf the net to find the right investment property. Investment in property is usually considered by buyers after the purchase of the primary family home, thereby gradually growing the investor’s property portfolio. This second property can then be used to make money from rental or resale profits. Investing in property is a long term venture.
When it comes to dealing in property, buyers are initially looking at the location and condition of property on the market. Then financial considerations must be made, weighing up the value for money in potential investments. When a buyer is properly informed in matters of location and costs they are then able to make better choices in selecting property, thereby securing better gains whether buying in Australia or overseas. For all these matters one needs expert advice and real-estate websites provide a great resource for those looking to buy property. These sites allow one to make property searches free of charge, offering the best deals with proper guidance and at the best rates.
Today, GDP growth, budget surplus and reduced unemployment rates hint at better times ahead for the property market in Australia. Under the current circumstances, demand for property has outstripped the supply consequently pushing up the rental rates.

This provides a “best of both worlds” situation for shrewd investors. With rising interest rates, developers are now offering buyers cash funds and attractive rates, and those who have surplus funds for disposal get better deals.
In such a situation first time buyers keep a low profile while the more experienced buyer always taps the right source to make a better proposition. Developers take the current situation into account in their costing. Bulk buyers stand to gain as they have better bargaining powers. Rising demand for rental housing has provided boon to cash rich investors. This situation has proved the recent survey by The Housing Industry Association in Australia which predicted a fall in property rates.
Permanent residents of Australia are free to buy any property, but foreign nationals require permission from the Australian Government before making any investment in property. When buying property with borrowed funds, a 10% deposit of the total loan value is needed. Transaction cost is around 5%, this includes stamp duty, insurance of property, legal and other fees.
As Australia is the fourth largest pension market of the world, investment in property is more accessible for potential investors. It is still possible to make good returns if buying in the more expensive capital cities in Australia. Popular cities for property investment in Australia are Sydney, Perth, Melbourne, Brisbane and Adelaide. As majority of the population lives near ports and costal areas, these locations will always have short supply of property and rates will keep mounting whether the property market slows down or not. When coastal areas fail to meet the demand, nearby areas will catch the attention of investors and in turn these outer city regions will fetch good returns. Consequently the decentralization of residential areas will occur providing more opportunities to investors. Further development of infrastructure with rail and road links will also encourage the growth of these new property markets.
Governments may consider tax and stamp duty concessions and cheaper finance so that the centralization of the property market can be prevented. According to recent reports, the Australian Government is considering changes to the rules associated with the related costs of property investment.
Therefore it is important for any real-estate website to highlight such opportunities, thereby providing better options for people thinking about value for money. Such sites should also include the details of financial institutions, interest rates, property tax information and hints about where to buy. It is also necessary to highlight the infrastructural development that is taking place in and around the chosen locations.
While giving such information these websites also provide a guide as to how to comply with the final formalities and what documentation is required when buying property. So it becomes very easy for an investor proposing to buy a property to get all the important information at their disposal.

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