Australia Property

Foreign investors have been buying Australian properties more actively in the first six months of 2009. This is quite interesting and surprising given the fact that the impact of global financial crisis is drastically affecting investment behaviors of businessmen all over the world. Indeed, just like in the past years, real estate sector in the country is performing relatively better compared to the property sectors in other parts of the developed world, including the progressive European and North American countries. Observers and analysts identify several reasons for the continuous uptake in Australia properties. First, the depreciating Australian dollar is boosting the value of the US dollar and other global currencies, making the purchasing power of offshore investors in the country higher.

Second, compounded investment growth rate of about 8% to 10% annually (depending on which state) translates to a 25% upside of local real estate. This is quite higher compared to the overall performance of current global property market.

Many investors are also seizing opportunities posed by lower tax rates on loans and easier procedures in securing them, especially for the purpose of constructing or buying residential properties. Analysts commend the Australian national government for offering a number of incentives aimed at stemming declining confidence in residential markets amid the global economic downturn. In particular, the government has been actively lowering interest rates in an effort to reduce property mortgage costs. The state of Victoria is most popular among foreign property investors because of the local government’s offered perks. The state is imposing lower tax rates and stamps if property buyers would buy land immediately and then settle the full amount as soon as the building or development is completed.