Where to find cheap Australia property
Country: Australia
It seems the turbulent economy and subsequent job losses, have given many British people the impetus to seriously consider buying Australia property and moving there permanently, seeking ‘safe haven’ where traditionally the quality of life is better and the cost of living lower than in the UK. Australia has not suffered the boom-bust reaction that others have, nor suffers from oversupply of property. Perhaps that’s why there are over one million Britain’s enjoying life on a permanent basis Down Under. However, in terms of the economy, the country has entered recession for the first time in 20 years, proving that she “cannot continue to swim against the global economic tide", as recently warned by Prime Minister, Kevin Rudd. This has obviously had a knock-on effect in the world of Australian property - which also seems to be flailing, bringing costs down. And at the moment, average prices of suburban family homes in Australia hover at around £200,000 to £400,000 in the major cities. Sydney PropertyAccording to a report by Knight Frank: “The mainstream Sydney property market has been sluggish over recent quarters with prices of residential Sydney property falling by -0.4 per cent, while nationally, annual price growth slowed to 2.8 per cent to September 2008. The interest rate cuts should act as a boost to the mainstream residential property market. However, buyers are cautious, anticipating further interest rate movements. Low levels of affordability of property in New South Wales and low consumer confidence have had a negative impact on transaction volumes in the Sydney mainstream residential market. The report adds that: “All sectors of the Australian residential property market have slowed over the last year, though the upper end of the residential sector has weathered the downturn better than the mainstream market.” Nick Hogan, solicitor director at Hogan Simpson, specialists in property law, says: “The market for properties in Sydney at $500,000 (£245,000) or less is extremely fluid at the moment. This is due to the glut of first home buyers in the market who, up until 30 June 2009, can buy an Australian property which is below $500,000 (£245,000) and brand new without paying any stamp duty and receiving a $24,000 (£12,000) contribution from the Federal Government towards the price. If you are not receiving these benefits, it is hard to compete with these buyers. Therefore, as a foreign buyer it may be better to wait until after 30 June 2009 to make your move.
At the moment, given the state of the world economy some people need to offload their main or investment assets, so there are bargains everywhere if you look hard enough. Specific areas in Sydney which currently provide good value include the beachside suburb of Cronulla and surrounding areas, where you can get a good one-bedroom unit with a parking space within walking distance to the beach, near the train station from which you can access the CBD in 45 minutes for around $350,000 (£171,000).” Melbourne PropertyMelbourne is Australia’s second largest city, home to some 3.8 million people of 142 different nationalities. Most of Melbourne has been built in the classical dormitory suburb mould catering for Australians preference for detached homes. Over the last twenty years, inner suburbs close to the Central Business District, transport hubs and all the conveniences of metropolitan life have consistently led property price performance in all major Australian cities. Monique Sasson Wakelin is Director, Media and Communications, at Wakelin Property Advisory. She says: “While the UK market has experienced a deflating housing bubble, Australian real estate has been one of the best performing and most resilient. Australia’s housing market remains undersupplied by new construction, “low doc loans” only account for a tiny proportion of the mortgage market and mortgage delinquencies are below their ten year average – not bad considering the global financial and economic climate. Property in Melbourne is one of the best performers in Australia. Consequently, £150,000, would buy a two-bedroom apartment in an outer suburb or a small one-bedroom apartment in an inner suburb. However, it should enable the purchase of a two-bedroom period cottage in Ballarat, a provincial town of around 100,000 people about an hour’s drive west of Melbourne. For £250,000 or roughly $530,000, you could buy a well-positioned two-bedroom Melbourne apartment in a fashionable inner suburb or a two- or three-bedroom Melbourne house in a middle priced, middle ring suburb. British citizens who wish to buy property in Australia must be living in Australia and have an appropriate visa which allows them to purchase residential property. If both these conditions are fulfilled, they do not require approval from the Australian government to purchase a principal place of residence or vacant land which will be built on within two years. Foreign citizens are prohibited from purchasing residential property in Australia for investment purposes. Central Equity is selling land and new homes at the Featherbrook Estate on Point Cook, Wyndham, Melbourne. Land starts from $175,000 (£85,000) for 400 square metres or design your own home and choose from a large range of exciting new home designs from some of Melbourne’s best builders, packages from $339,000 (£164,000). Slightly over budget, but perhaps worth the stretch. Perth PropertyCharlie Gunningham, co-founder and MD of Aussiehome.com moved to Australia 20 years ago from the UK and is clearly happy in his new property in Perth . “Perth is a great place to live, no question. We now have two young kids, and I can’t think of a safer, cleaner and cost effective place for families. In fact, it’s like the whole place is set up for families. You get generous subsidies on child-care, baby bonuses and stimulus money from the government, and there’s plenty to do [that does not cost anything] – from an abundance of parks with excellent play areas, to locally organised sport to the wonderful beaches.” He adds: “Yes, there are properties in Perth for under £150,000– although this buys you less than it would have ten years ago and probably more than it would have done 12 to18 months ago. Perth property prices have come back 20 to 30 per cent from the highs of 2006/07, and there are deals to be made.” Adelaide PropertyThe market for property in South Australia appears to be on the brink of what may be one of the largest property booms in its history. Adelaide has always been considered as the quiet and slower paced city relative to its eastern neighbours. This being the case, however, a closer statistical analysis of the rate of capital appreciation within all of the major capital cities between 1980 and 2005 showed the annual rate of growth in property in Adelaide to be comparable with cities such as Sydney and Melbourne. Angelo Mena, from Adelaide Property Finders, says: “For the first time, there are several factors that are simultaneously converging which did not exist between 1980 and 2005 which support the conclusion that the Adelaide property market is likely to experience strong growth once the world economy begins its rebound. The first of these factors is mining. Significant levels of exploration have occurred throughout South Australia which has shown the state to be highly rich in minerals. Mines are now being expanded. One of which includes the largest uranium, gold and copper mine in the world at Olympic Dam which has an estimated resource value of a trillion dollars and a life span of over one hundred years. “The consequence of this is likely to be an increase in prosperity across the state which will fuel the increase in values of Adelaide properties as was seen in Perth during the last recent mining boom. Population for the first time is also on the move. Historically Adelaide has traditionally had low levels of population growth in the past. Recent initiatives from the State government have led to the acceleration of population growth across the state to a level which is exceeding the initial ambitious expectations set by the state government. Unprecedented levels (billions of dollars) of Defence contracts have also been awarded to South Australia in recent times, which will further fuel the economic growth of this state.” By far South Australia also has the lowest median house price of any mainland capital city in Australia. The South Australian government has also put significant future plans in place which will lead to the reshaping and further enhancement of metropolitan Adelaide. Adelaide also has a temperate climate and a beautiful city which is easy to get around. It has a rich diversity of housing as well as culture. Summary Recent enhancements to the First Home Buyers scheme in Australia, and some positive adjustments to Stamp Duties further underpin the property market. The reduced interest rates will also be a major catalyst on the return of confidence, once people can see more certainty on the global economic outlook. The latest national survey of residential properties compiled by RP Data-Rismark reveals that average Australian house prices appreciated 1.1 per cent during the first two months of this year, improving from falls of 3 per cent in 2008. The greatest gains were recorded in Darwin, where average prices for property in Darwin were up 6.1 per cent for the three months to February, Melbourne prices rose 1.9 per cent and Sydney prices were up 0.5 per cent. Jessica Bird, spokesperson from the Australian Visa Bureau says: “Property prices across Australia have a huge variance, particularly because there is a massive difference between rural, coastal and city houses.” She adds: “The Real Estate Institute of Australia confirmed in December 2008 that the Australian average median house price reached $447,659 (£218, 000) in the September quarter - a decrease of $459,795 (£224,000) from the June quarter - with only Sydney having a median house price above $450,000 (£219,000). In the Department for Communities and Local Government live tables, the average median house price in the September quarter for 2008 was sitting at £233,459. “This difference in average house prices and the trend to have better income ratios in Australia and the UK means you would have a great chance of a better lifestyle in Australia, living in a nicer home with an increased cash flow.”
First published in June 2009. Some information contained within this article may have changed since it was first published. Homes Overseas strongly advises you to seek current legal and financial advise from a qualified professional.
Nicole Rapaport
Some information contained within this article may have changed since it was first published. Homes Overseas strongly advises you to seek current legal and financial advise from a qualified professional.
Some properties in Australia
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Price: £71,000
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Type: Land
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Live in a Natural Environment at Woodland Waters
Country-style charm is par for the course at Woodland Waters.
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View details | Enquire further
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Price: £78,000
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Type: Land
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Featherbrook at Point Cook – only 25 mins from Melbourne Central Business District
With its vast open spaces and specially designed recreational areas, Featherbrook, Point Cook offers residents the very best in lifestyle options.220
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Price: £98,000
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Type: Apartment
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Bedrooms: 1/2
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Affordable, Contemporary Living in the Heart of Australia’s most liveable city, Melbourne.
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Price: £107,000
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Type: Land
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Classic Coastal Living at Sefton Grange on the beautiful Mornington Peninsula
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Price: £108,613
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Type: New Home
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* INVESTMENT OPPORTUNITY -"STUDENT ACCOMMODATION"
* Brand New 'Off the Plan' Student Living - 'eco square'
* 6% guaranteed 12 month return
* Up-market location
* Cutting edge design by award winning architects - Hayball
* Low Stamp Duty
* Low
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Price: £146,000
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Type: House
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Bedrooms: 1/2
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Featherbrook at Point Cook – only 25 mins from Melbourne Central Business District
With its vast open spaces and specially designed recreational areas, Featherbrook, Point Cook offers residents the very best in lifestyle options.220
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View details | Enquire further
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Price: £165,000
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Type: House
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Bedrooms: 1/2
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Live in a Natural Environment at Woodland Waters
Country-style charm is par for the course at Woodland Waters.
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View details | Enquire further
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