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Australia real estate investment is attractive to Australian and international investors. Healy Consultants independently assists investors by managing all aspects, including obtaining property finance, along with legal and taxation matters related to Australia real estate investment. Key areas for international investors interested in Australia real estate investment include:

Australia real estate investment benefits from Australia being one of the most appealing countries to live in Asia Pacific. Mercer Human Resource Consulting rated Sydney, Melbourne and Perth as 3 of the top 5 cities within the Asia Pacific for living standards in its 2009 Quality of Living Survey. Of these, Sydney was ranked 10th out of 215 global cities, while Melbourne and Perth ranked 18th and 21st respectively.

Non-resident buyers can be involved in Australia property investment 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 and properties for redevelopment must begin within 24 months of purchase.

Australia real estate investment options exist across the different sectors of the property market including i) residential real estate if living in Australia, ii) commercial real estate to support business interests or iii) as a rental property to gain an income stream.

In Australian, the Foreign Investment Review Board (FIRB) regulates the sale of Australian property to overseas persons and corporations. Australian citizens living abroad who are holders of permanent visas or a 'special category' visa can invest in the Australia property market without examination by the FIRB. The term 'non-resident' for lending purposes applies to a person who:

• Permanently resides out of Australia and is not an Australian citizen;
• Is an Australian citizen that has been living and working out of Australia for more than 6 consecutive months;
• Is not an Australian citizen but has been residing in Australia for less than 6 consecutive months.

Negative gearing is one incentive for Australia real estate investment, not present in many other markets. Negative gearing refers to borrowing to buy property and the interest payments and other costs to the property owner are more than the rental income achieved. The difference between the amount of rent received and the expenses from owning the property are tax deductible. Positive gearing is the opposite, where the income from the property exceeds the expenses on the owner. Positive gearing on a portfolio of property is a long term goal of many savvy investors.

At the moment interest rates in Australia remain static. This is predicted to last one month, as the Reserve Bank of Australia announced they will be increasing interest rates. This will therefore discourage buyers from investing in Australia real estate. By February 2011 if interest rates get as high as the levels anticipated by the financial markets (7.98 per cent), the same first home buyer would be paying $1,978/month or an additional $100/week. 

Obtaining property finance is an important step in undertaking profitable Australia real estate investment. Ways in which Healy Consultants assist investors in obtaining competitive property finance for their Australia real estate investment include:

Locating international mortgages to support Australia real estate investment. Some of the principal international banks our firm works with on our clients' behalf include NAB, Commonwealth, HSBC and ANZ Bank.

Comparing the different property finance options to ensure clients obtain the best deal to support their Australia real estate investment objectives.

Negotiating banking terms and conditions on behalf of our client.

After obtaining the property finance, opening personal and corporate bank accounts to receive rental income and settle mortgage repayments for their Australia real estate investment.

Preparing business plans and cash flow projections to maximize the probability of the application being approved.

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Acting as the intermediary between the bank and our client during the entire process from sourcing to securing the property finance for the clients Australia real estate investment.

For further information on Australia real estate investment, call us in Sydney at +61 280 147 568.

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