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 Blessed with a vibrant economy, political stability and a rich cultural diversity – not to mention the beaches, blue skies and seemingly unbeatable sports teams – Australia continues to draw investors in their droves. But forget Sydney and Melbourne – Brisbane is the latest real-estate hotspot Down Under
Published in Square Foot Magazine on September 1 2006
Brisbane real estate is more affordable than Sydney and Melbourne, but a housing boom in recent years has, nonetheless, sent prices soaring even here. In June 2002, for example, there were reportedly more than 30 Brisbane suburbs with an average house price of under A$200,000 (HK$1.18 million). One year later, there were only six suburbs boasting this figure, and, by last year, there were basically none. (House prices did, however, fall slightly between January and March this year, by about a 0.5 to 1 per cent.) According to the Real Estate Institute of Australia, the median house price in Brisbane was around A$324,000 (HK$1.92 million) by the end of the first quarter this year – compared with the A$516,000 (HK$3.05 million) median price in Sydney. The Real Estate Institute of Queensland (REIQ) has reported that the Brisbane local government area recorded a 2 per cent increase in the median house price in the year ending March 31, 2006. Apart from the fact that Brisbane is an attractive city with a pleasant sub-tropical climate and offering a high quality of life, the Sunshine Coast, with its vast sandy beaches, golf courses and proximity to the mountains and farming areas, is only an hour’s drive north.
Why
- The Australian property market has been extremely stable over the past few years and market watchers expect long-term performance to remain positive;
- The country’s growing population is, of course, conducive to a growing property market, and Brisbane is no exception – its strong population growth is not expected to slow down in the foreseeable future;
- Investors like the fact that there is a high demand for rentals, and that there are strict laws protecting landlords’ rights;
- Property is usually offered through a freehold title.
How
- It is relatively simple to buy property in Australia, and the law protects investors to a great extent. Once signed, the contract is binding;
- While foreigners are restricted from buying “established housing”, unless they have citizenship or are permanent residents, they are allowed to buy new properties. The rationale is that, in such cases, the investments go towards promoting economic activity;
- It is easy to obtain financing, and mortgage periods can be for up to 30 years;
- Keep in mind that when you buy a property in Australia, you have to pay a state government stamp duty of between 2 per cent and 5 per cent of the purchase price;
- You will also need a legal representative to arrange the transfer of the property into your name. If you plan to buy in Brisbane, remember that local planning, zoning changes and flood information (some areas are prone to flooding) affect property prices in the area. It is normal to also arrange a pest and building inspection before you sign the contract (termites can be a problem);
- When you buy a house, you need to transfer the property title, so budget for the cost of conveyancing.
Anything else
Consider paying for the services of a buyer’s agent, who will do the house hunting and tricky negotiations on your behalf. If you are buying for investment, take a long-term view and choose the best quality property you can afford. The Reserve Bank of Australia (RBA) raised the interest rate for a second time this year to a six-year high of 6 per cent on August 1 and another hike is expected before the end of the year. Australia has one of the highest rates of all the major developed countries.
Who
The Citylife Property Group
www.citylifeproperty.com
Indigo
www.driftpalmcove.com.au
www.oceansedge.com.au
The Real Estate Institute of Queensland
www.reiq.com.au/index.asp
Midwood Queensland Investment Report
www.midwoodaustralia.com
ourbrisbane.com
http://www.ourbrisbane.com/living/realestate/buying/
Brisbane Australia.com
http://www.brisbane-australia.com
Sunshine Coast Virtual Properties
www.virtualproperties.com.au
my sunshine coast.com.au
www.mysunshinecoast.com.au
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