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Major Australian cities naturally are experiencing the biggest growth in their real estate markets. Cities like Sydney, Perth, and Melbourne are leading the way in the real estate arena. In addition, a great number of more rural areas in the country are experiencing a surprising growth in their own real estate markets. Many people have come to find the more rural areas of the Down Under to have particular appeal.
Investment Property in Australia
An increasing number of people — both Australian nationals and people living abroad — have become more involved in purchasing and owning investment real estate in Australia since the turn of the century. Generally speaking, the up tick in the acquisition of investment real estate throughout Australia is taking shape in two general areas.
First of all, a growing number of people are seeking, finding and purchasing real property in th major Australian cities that is then leased to different types of business enterprises. A surprising number of foreign nationals are involved in this type of investment scheme. For example, many Europeans have taken to investing part of their capital in commercial and business properties in the major Australian cities.
Generally speaking, investors have realized a fairly substantial return in this type of investment in recent years. Indeed, from a long term investment standpoint, real estate values have continued to rise significantly in all major Australian cities for the past decade.
Second, a notable number of people who are seeking an investment in income producing real estate have taken to putting their money into properties that are involved in the tourism trade in Australia in one fashion or another. Tourism remains a primary industry in the Down Under in the 21st century. An ever growing number of visitors are trooping to Australia with each passing year.
Most real estate analysts in Australia maintain that no proverbial bubble is yet in sight when it comes to the investment market Down Under. Therefore, most of these experts agree that a present day investment in real estate in Australia is a solid decision, not only for today but well into the future.
Residential Real Estate in Australia – Single Family Properties
As a nation, Australia is a country in which home ownership is a goal (and the reality) for a vast majority of people throughout the country. In point of fact, at the present time, over 70% of the population of Australia owns residential property. A clear minority are tenants or involved in some other living arrangement that does not include the ownership of a home.
In today’s Australia, the development and construction of single family residences is being undertaken at a fast clip. The major Australian cities, for the most part, have not yet been overbuilt. Thus, the demand for these properties continues to outstrip supply, at least to some extent. As a result, and generally speaking across the country, the Australian residential real estate market remains a seller’s market. Most industry experts and analysts expect this status to remain over the course of the coming ten years.
The percentage of residential properties owned by foreign nationals within Australia remains very small. Presently, most foreign nationals that are electing to live a part of the year in the country still tend to be leasing property for that purpose. However, and with that said, each year more and more foreign nationals are in fact making the purchase of residential properties in Australia for their personal usage.
Residential Real Estate in Australia – Apartments
When it comes to tourism in Australia, a significant number of visitors to that country plan extended holidays or travels within that nation. Many travelers who have Australia as a destination are determined to stay in the country for a period of months rather than weeks or days. As a result, the market for apartments and similar types of housing situations remains strong.
Recognizing the strength of this market, many people have taken to buying up and investing in apartments and other multi-family dwellings for investment purposes. Some foreign nationals are getting into this mix themselves.
When it comes to buying and investing in this type of real estate, the number of foreign nationals involved in the ownership of these properties understandably is largest in the major Australian urban areas. However, with more and more visitors to Australia — as well as Australian citizens themselves — becoming more interested in life in rural areas, more apartment units are being developed in smaller communities all of the time. These projects are ripe opportunities for many foreign investors interested in gaining a foothold in the Australian real estate market.
Holiday Property in Australia
Since the 1950s, when it come to the ownership of real estate in Australia by foreign nationals, the most common type of property that a non-Australian can be found purchasing is vacation real estate. Again, and as has been mentioned, tourism remains a primary industry in Australia. Thousands of people who are citizens of foreign countries have taken to purchasing vacation property in Australia. By making these investments, these foreign nationals are able to spend time on holiday or vacation within Australia and have a home base from which to operate while in country.
Many such investors are taking the additional step of renting or leasing out these properties during those periods of the year when they are not using the properties. In many of such cases, the vacation property owner has found that he or she is able to turn a tidy profit from this type of arrangement
Specific steps to buying real estate property in Australia
The ability of a foreign national to make the purchase of real estate in Australia requires governmental permission. Before a foreign national can commence seriously the pursuit of real estate to purchase in Australia, he or she must seek and obtain permission to purchase real estate from the Foreign Investment Review Board.
Whether a person is seeking to purchase residential property or investment real estate, it is important to initiate the approval process with the Foreign Investment Review Board early on. Indeed, most people apply for approval from the Board at least ninety days prior to launching a more concentrated search for real estate to purchase in Australia.
When it comes to a foreign national investing in residential or commercial real estate in Australia, getting approval from the Foreign Investment Review Board really is the most cumbersome portion of the entire process. Once this approval has been tendered by the governing Board, the process of satisfying the legal requirements to purchase and own real estate in Australia surprisingly is rather simplistic.
Overall, most real property in Australia is sold either through what is known as a conventional channel or through auctions. In considering the conventional course of purchasing real estate in Australia, when a foreign national identifies a property that he or she is interested in purchasing, he or she need only convey an offer to the seller.eal estate of all varieties in the country.