Real Estate in Australia
/Real Estate and Property in Australia
First Published Date: June 11, 2010
Australia is one of the most beautiful countries in the world, and it is a common tourist destination. Some travellers go to the country so often, that they begin to think about actually moving to Australia, or buying property that they can go to for a few months each year.
It is not hard to see why Australia is so popular among travellers and potential foreign homeowners. The country, completely surrounded by water, is the sixth largest country on Earth but only has a population of 22,000,000. Australia is also one of the best places to live on the planet according to several studies:
· The United Nations Human Development Index ranked Australia second in the world, behind only Norway, in terms of Life Expectancy, Education and per-capita GDP.
· Transparency International ranked Australia eight overall in terms of the level of corruption in the country. This means that Australia is one of the least corrupt countries on the entire planet.
· The United Nations Education Index ranked Australia first in the entire world in terms of the level of and quality of education within the country.
All of these things come together to make Australia an excellent place to live, or vacation to for months at a time.
Most people buy homes in Eastern Australia, which is where most of the larger cities are located. The interior of Australia is known for its extensive desert, often termed the Outback by those in Australia and outside of Australia. If you are planning on moving to Australia from a foreign country, you will most likely be looking along the coast, or in the major cities. Currently, the three major hot spots for foreigners purchasing properties in Australia are Sydney, Melbourne, Perth, as well as Brisbane and the Gold Cost. These are popular tourist destinations and with the current economic downturn around the world, real estate prices within Australia have fallen, making some larger homes much more affordable.
That being said, homes are still expensive because Australia has seen its housing market rebound impressively. The average prices for homes in Australia are:
· Sydney: $577,000
· Melbourne: $492,000
· Perth: $475,000
· Brisbane: $452,000
If that is more than you can afford, you may look at sharing the property with someone who lives in Australia, who you can use to help pay the mortgage when you are not using the property.
If you live overseas and are not a citizen of Australia, you can only purchase property within Australia that is Off the Plan, New or is vacant land that is going to be developed within the past year.
Property values in Australia will often move up and down in cycles. When property prices go up, it is typically during times of high economic prosperity. As we saw in 2009, when the market was suffering significantly, the housing market fell dramatically in its prices. However, once again, it moved up as time went on and the world moved out of the recession that was gripping it.
If you are thinking of buying real estate in Australia, there are two main methods. These methods are buying at auction and buying through the conventional manner.
· Buying property in Australia through auction requires a 10 percent deposit available the day of the auction. It is important to remember that if you buy a home in Australia through auction, the deposit is non-refundable, even if you change your mind. This is why it is highly important that you have someone visit the property for you to determine whether or not it is the right place for you to move to. You do not want to buy a home that is in bad shape, as you will end up paying more to fix up the home than you would have if you just bought the home through conventional means. Inspections are always important because they will find things that you may not.
· Buying property by conventional means in Australia, you pretty much go the same route as you would in any other developed country. You will find a property that you like, put in an offer and if the offer is accepted, you will have the home inspected and then you can move there. If your offer is accepted, you need to pay a holding deposit while the Contract of Sale is being produced. Your holding deposit is completely refundable during the period when the Contract of Sale is being drafted. The Contract of Sale in Australia will outline all the conditions and restrictions of the sale and usually you will pay a 10 percent deposit that is not refundable. In terms of fees, you will typically pay about five percent on the purchase price as well as mortgage arrangement fees and legal fees.
Australia is a stunning country that gets lots of sunshine, is very safe to live in and has a high standard of living. Thousands of people every year decide that they want to leave their cold countries and live in a place where the sun always shines, the people are friendly and the ocean is everywhere. People who love relaxing on the beach, surfing, or just checking out amazing natural sights choose to go to Australia. They may not live there all the time, but they do live there some of the time and they cannot be happier.
As a foreigner, you do have to go through a few hoops to purchase the property but generally it is much easier to buy a property in Australia than it is anywhere in places in Southeast Asia. For many, buying a property in Australia is a better alternative when you want to live in the South Pacific, without moving to developing countries like Thailand or the Philippines.
So, why not think about moving to the Land Down Under, where the sun shines and the surf is nice and warm.
