| Australia Rental Market |
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Foreign ownership of Australia property has restrictions and is governed by the Foreign Investment Review Board (FIRB). Investors do have options for owning property within the residential and commercial sectors of the Australia property market. Following is information related to this and how Healy Consultants assists investors with their objectives in foreign ownership of Australia property:
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1.
| According to the Global Property Guide, Australia is classed as having neutral laws regarding the rights of landlord and tenant. The rights for both parties are protected under the Residential Tenancy Acts of each state. One positive aspects of the Australia rental market in favour of the property owner is that the tenant must pay a rental bond and rent must be paid in advance. In Australia, the laws governing tenancy are controlled by the state governments so each state has its own Tenancy Act. These are listed below: | |||
| i) Australian Capital Territory - Residential Tenancies ACT 1997 ii) New South Wales - Residential Tenancies Act 1987 iii) Northern Territory - Residential Tenancies Act 1995 iv) Queensland - Residential Tenancies Act 1994 v) South Australia - Residential Tenancies Act 1995 vi) Tasmania - Residential Tenancy Act 1997 vii) Victoria - Residential Tenancies Act 1997 viii) Western Australia - Residential Tenancies Act 1987 | ||||
2.
| Foreign investors in the Australia property market are required to gain approval via the Foreign Investment Review Board (FIRB). The FIRB is a non-statutory body established in 1976 to give guidance to the Government on foreign investment policies. Their role is to protect Australian citizens while at the same time allowing investment which benefits communities within Australia. The three categories for foreign individuals to purchase property in Australia are: i) Real estate for residential redevelopment, ii) vacant land, iii) home units, townhouses that have not been occupied or previously sold. FIRB approval is more likely to be given to those who are purchasing an apartment in a new development, rather than residential property that has been owned, or occupied before.
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3.
| Migration to Australia is one reason for its population growth, a positive aspect when considering the rental market. Australia is seen by people all over the world as having a desirable quality of life. This is supported by the 2009 Quality of Living Survey by Mercer Human Resource Consulting which ranked Sydney, Melbourne, and Perth 10th, 18th, and 21st respectively. Within Asia Pacific, all three cities were ranked in the top five.
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4.
| Low vacancy rates are helping the Australia rental market to maintain its strength. In September 2008 rentals for all major cities to be constant or inclining.flat. Sydney has experienced annual approximate growth of 18% for 3 bedroom houses and 15% for 2 bedroom units.
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5.
| Healy Consultants assists investors to manage the process of finding tenants for newly acquired residential and commercial property. This process includes i) appointing a reliable agent, ii) determining the optimal rental for the property, iii) interviewing potential tenants and supervising negotiation of contracts iv) arranging necessary requirements for collection of rental payments v) efficient resolution of tenant issues. |
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6.
| In Australia, the concept of negative gearing is allowed.
Negative gearing refers to borrowing funds for purchasing property and receiving a tax incentive as the difference between the amount of rent received and the expenses incurred by the owner are tax deductible. |
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7.
| Investors in the Australia property market are is assisted by the property management services provided by Healy Consultants. By project managing activities such as organizing property maintenance and refurbishments, implementing property security requirements, organizing property valuations, and ad hoc problem solving issues, our firm saves clients from these time consuming aspects of buy-to-let property investment.
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| Contact Us | ||||
For further information on the Australia rental market, call us in Sydney at +61 280 147 568 or contact us at email@healyconsultants.com
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