Exclusive Hot Properties Australia
From our international offices and our local partners on the ground in Australia we help international clients with the following services.
Buying the Best Property in Australia
Very simply we offer our International clients the best of both worlds in that we have proven experienced local knowledge on the ground as well as international expertise from having made many different transactions throughout the world. This will allow you to buy safely and securely in Australia.
Setting Up a Business in Australia
Very simply our professional directors can help you with the set up your company structures in the most tax efficient manner possible. We only use the very best Lawyers, Accountants and professional advisors to make sure your company structure is 100% safe and secure and the very best you can have in Australia
These are just a sample of the key services that Exclusive Hot Properties Australia provides and should you need any further information do not hesitate to contact us directly.
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Why Invest in Australia Property?
Australia has been one of the worlds boom real estate market for years now with the Chinese investing over 6.8 Billion Australian Dollars a year. However this has had a negative impact on local Australian citizens being able to buy Property and in August the Government took measures to stop the level of Chinese and Asian investors buying Australia real estate by making it much harder for these buyers to get funding. In some cases this has had the first effect of certain buyers not completing on their purchase. If this actually leads to a slowdown in property price rises in Australia is another story completely.
AUSTRALIA PROPERTY MARKET
After five years of strong house price rises, Australia’s housing market is still powering ahead. House prices in the country’s eight major cities rose by 11.1% during the year to end-Q2 2017 (8.98% inflation-adjusted), a sharp acceleration from an annual rise of 4.65% a year earlier. Quarter-on-quarter, house prices increased 1.9% (1.72% inflation-adjusted) in Q2 2017.
saw the biggest increase, with the established house price index surging by 16% (13.8% inflation-adjusted) during the year to Q2 2017, followed by Sydney (14.8%), Hobart (12.2%), Canberra (9%), Adelaide (5.1%), and Brisbane (3.9%). On the other hand, house prices dropped in Darwin (-4.7%) and Perth (-2.8%) over the same period. The mean price of residential dwellings in Australia was AU$679,100 (US$530,173) by end-Q2 2017, up 9% from the same period last year, according to the ABS.
New South Wales
especially Sydney, has the most expensive housing in the country, with the mean house price at AU$903,700 (US$705,880) in Q2 2017, about 33% above the national mean house price. In contrast, Tasmania has the cheapest housing in Australia, at a mean price of AU$360,400 (US$281,508) over the same period.
In the second quarter of 2017, Australia’s economy grew by 1.8% from a year earlier, at par with the previous quarter’s growth. The economy expanded by a modest 2.5% in 2016, after GDP growth of 2.4% in 2015, 2.7% in 2014, 2% in 2013, 3.6% in 2012, 2.7% in 2011, 2.3% in 2010 and 1.8% in 2009, according to the IMF. The RBA kept the official cash rate unchanged at a record low of 1.5% in September 2017, after cutting it by a cumulative 50 basis points last year, in an effort to stoke price growth and bolster the economy. Acquisition of residential real estate by foreign nationals and corporations is subject to FIRB approval. Foreigners are not allowed to buy an established (previously occupied) house. They may buy an unoccupied new dwelling, but only if the FIRB feels that the purchase will not add to the shortage of properties available to native Australians.
WHERE TO INVEST IN AUSTRALIA?
As an overseas investor the two best areas for new property investment that will not be knocked back by the regulators are in Brisbane and Melbourne. Sydney is much more difficult to find value and also depending how strongly the regulators enforce the law maybe the most difficult area to buy in.
Very simply if you’re a cash buyer then you can still invest in Australia and make good real estate investments but if you are one of those investors who need finance to make it a worthwhile investment then you may be looking at other markets right now. At Exclusive Hot Properties were only offering New Build property projects that have funding and that are key ready so the investor knows they can complete on the transaction and make a good long term investments.
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The Buying Process in Australia
To buy an established property, you must have been a resident for at least 12 months or be buying in partnership with a resident if you meet certain conditions. If you do not qualify as a resident, you may still be able to a newly developed property. This is what you will have to focus on as an international property investor.
You will usually pay a tax, known as Stamp Duty, of .3% to 2.5% of the purchase amount, depending on where the property is. You may also have to pay an annual land tax if you own property worth more than a certain amount. These taxes vary between states and territories, so visit the relevant government website to see what taxes will apply to you.
While studio-sized apartments in Manhattan and London and sprawling mansions in Los Angeles or New Delhi are favoured by investors; these properties don’t tend to perform well in Australia. Investors should target apartments which are at least 50 square metres in size, townhouses with a private courtyard and small to middle sized houses with a separate living room and an outdoor area.
What are the advantages in purchasing “off-the-plan”?
Buying off the plan means buying prior to construction. Benefits include the ability to lock in at today’s prices. Many buyers who have got in early have enjoyed the benefits of strong price appreciation.
Another benefit is delayed settlement i.e. buyers are not required to settle or pay for their property in full until construction is completed and settlement has taken place. This allows the buyer to arrange appropriate finance.
Only a small deposit (10%-20%) is required and the remainder is not due until building is complete. There are also significant depreciation tax savings on new or off plan property, and some cities offer stamp duty savings also.
How much deposit do I have to put down when I purchase an apartment off-the-plan?
You normally only need to pay a 10% or 20% deposit.
What happens to my deposit?
The deposit is held in a legislated trust account. By law the deposit funds cannot be used by the developer until the property is completed and final completion and settlement has taken place. This often gives you up to 12-24 months or longer to maximize and organize your financial affairs.
Are there any tax savings?
Yes. New Buildings can qualify for significant depreciation tax savings. (Up to 60% of the purchase price may be given back to you in the form of a tax deduction) Additionally properties bought for investment allow the owner to claim all expenses on the investment against future rental income.
Is there a building warranty?
Usually, depending upon the State Laws. New apartments usually include a structural warranty not available on older buildings.
I am not an Australian. Can I still buy?
Absolutely. Approval is given by the Australian Government for foreign persons to invest in brand new, or “off-the-plan” property.
If I sell, can I get my money out of Australia?
Yes. The funds can be sent anywhere in the world.
Does buying property help me migrate?
No! Buying a property is not a criteria to migrate.
I live overseas. How involved do I have to be?
Property ownership “from afar” is very common. There are very professional property managers. All bills can be paid for you. Rents are banked into your account.
Property ownership can be pretty much trouble free.
However, being a landlord does carry with it some responsibilities, and from time to time you may need to get involved. With e-mail and the internet, overseas property investing has become a world-wide reality.
As a foreigner can I obtain a mortgage to buy one of these properties?
Yes. Finance is available for foreign investors.
Like many countries, Australia has tightened up on the amount of the loan
to the purchase price available. However, 60% of the valuation and up to 70% is available to non-residents for
Australian dollar loans. For off-plan apartments, you only start repaying the loan after you take completion.
No loan payments are necessary before then. (For House and Land, progress payments are made to the builder.)
Foreign currency loans are also available for residents of certain countries such as Hong Kong, Singapore, the USA and Malaysia. Lower interest rates are available, but buyers should be aware of currency risk if borrowing in a different currency to the asset and there often minimum amounts of loan that must be taken. For Australian citizens living overseas, 70% loans and up to 80% are usually available. VERY IMPORTANT NOT EVERY DEVELOPMENT CAN OFFER FINANCING BUT THE ONES OFFERED BY EXCLUSIVE HOT PROPERTIES ALWAYS DO.
What type of loan is the best?
For investment property, very attractive investment loans are available, where you are only required to make the minimum interest payment each month, with capital or principle payments made at your option. These loans make property investment very attractive, as it means the rents will usually cover the monthly payment.
Am I paying too much?
All prices are fixed. There are no hidden costs. All prices are fair market prices.
EHP guarantees that all prices are offered at exactly the same price offered in Australia to local investors. You pay no extra in the price by buying from overseas, although like many countries some extra taxes may apply for foreign buyers.
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