Many of us dream of throwing in the UK towel and heading south of the equator to some place where the sun shines, the wages are better and life just seems so much sweeter. For many people, this place is fondly referred to as Australia.
As the pressure on the public purse increases and the predictable British weather serves us a few severe blows, it’s little wonder many of us dream of throwing in the UK towel and heading south of the equator to some place where the sun shines, the wages are better and life just seems so much sweeter. For many people, this place is fondly referred to as Australia.
Moving down under has become such a popular option for UK residents that a recent survey revealed that for three out of four people looking to emigrate, Australia was their first choice. As well as the fair weather, wages are generally better than in the UK, whilst the pound stretches much further when it comes to property.
Anyone interested in investing in property needs to follow the same rules as in the UK – renting before buying lets you get a ‘feel’ for the neighbourhood and chop and change until you’ve found your ideal location, without having to make any commitments. Shop around for agents – compare fees and admin charges and make sure that when you do make an offer you haggle for a bargain. Whilst the market has recovered well after the global slump, there are still savings to be found.
A word of warning however, unless you have Australian citizenship or a permanent residency you’ll be classified as a foreign investor and as such are limited to buying off-plan or land, which drastically limits options. The purchase process is also very different to the system in the UK – where the buyer has the chance to pull out right up until the moment of exchange. Conversely, in Australia contracts are drawn up by the estate agents as soon as the seller accepts an offer, there is a short cooling off period – a matter of days, before these documents become legally binding.
Mortgages are available to non-residents on a similar basis to agreements in the UK – shop around for local providers; alternatively look at setting up a mortgage agreement in the UK and organising a money transfer . Buying for purely investment reasons is viable, but purchasers should also check Capital Gains Tax, which for foreign investors is set at 29-45%.
The strongest growth is predicted to come in both Sydney and Perth, whilst a cooling off is expected in the markets of Brisbane, Canberra and Hobart.
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