How about Owning an Investment Property in Australia?
Wherever we live today people from all walks of live, are wishing they could own a house, many of them already do and are looking for a second home abroad for holidays; also to bring in a little extra money or as an investment for the future. It may only be very small, but few people don't have the desire at all.
Here in the UK and many parts of Europe it is getting more difficult to get on to the property ladder as houses are getting so expensive to afford. Hence why many people are looking at other countries to own a holiday home, an investment or to go and live more permanent now or in retirement. Thousands have an eye on their retirement when thinking of property abroad. Government figures were published in 2006, show a million British pensioners now draw their state pensions abroad - 241,000 in Australia, 151,000 in Canada, 71,000 in France and 33,000 in Italy.
Australia is not the first place that springs to mind with most people, but why not? It's a wonderful place to bring up children, with so many open areas to visit and the beaches are magnificent, with most developed land within a few miles of the sea. Numerous areas where we feel we are walking back in time possible 20 years or so, where people feel that houses and car don't always need locking when they leave them, where railway crossing gate and traffic lights don't seem to have been invented.
After spending many holidays in Western Australia over the last 20 years visiting my son and his family, we decided 5 years ago that we would like to have a place of our own. Today we own 2 investment properties that are let through a local agent, plus a holiday home.
Western Australia is the part of Australia that we are most familiar with, hence why most of our purchases are there but the laws cover all Australia. WA is less developed than the Eastern part and is still has some way to go to catch up with the prices too. There are so many different parts to it from the wildness of Broome where an aeroplane is the only way to see the countryside, Exmouth for the beautiful coral reefs, ( a well kept secret) Sharks bay to feed the Dolphins when they come in to the shores, a truly magnificent country so wild and uninhabited; many parts are still quaint and have time to have fun, as well as walking back in time, dearly loved by both of us. But the gem is Perth with the Swan river mingling its way through the centre; one must go up to Kings Park and look over the whole of Perth to the sea a short distance away, with many lovely beaches and the Port of Fremantle in the distance.
We mustn't forget Kalgooli, the most fascinating place to go to. This was were the gold rush started at the beginning of the last century and it look as if you are walking on to a film set of one of the latest westerns.
Just take a holiday over there and mix business with pleasure and get the tax man to help with your expenses. Yes, It's a long way but some very interesting places to call off at on the way, airlines are very accommodating.
Buying
There are 4 main differences between buying a house in the UK and Australia:
1. All non-residents must have permission from the FIRB - The Foreign Investment Review Board before they can buy.
A copy of the rules can easily be acquired by e-mail from the government at firbenquiries@treasury.gov.au
Non-residents can only buy virgin land or new houses that have not been occupied before.
a. This is to stop property developers from abroad having land banks of undeveloped plots or sites.
b. To keep the building industry moving ahead and more jobs for their people.
You must start building on the land within the year of purchase. (They soon check up if you haven't submitted plans to the local Shire within the year and want to know why.)
When buying a plot of land or new house, as soon as you make an offer and the owner agrees to accept your offer the Estate Agent will ask you to sign an acceptance form and pay a deposit, this forms part of the contract. This is a binding offer and it works in Australia similar to an exchange of contract does here. (Why we can't implement that system here, as it would solve all gazumping or backing out at the last minute.)
Don't be put off by their rules they are just so simple once you have your head around them and quiet frankly we wish the UK followed them too. Without going into all the very fine detail we have found Australia equally as easy as building in the UK and would recommend it to all who are interested. There are slightly different rules if you are investing with a consortium of investors but we are not covering large investments in this article.
Rising Finance
It is possible to get a mortgage in Australia similar to here in the UK; in fact we took out a 'non status mortgage' for part of monies required when we build our 2 investment properties. We met the Agent filled in the forms and any other paper work the day before flying home and finished the process over the phone and email.
We have had no problems letting the properties, through a local letting Estate Agent and so far they haven't ever been empty more than a couple of weeks over the last 3 years.
Tax and Accountant
We had to apply for an Australian Tax Number and found Accountancy Company based in Perth WA but with offices in Singapore, London and USA, although we do have an UK based Accountant too. Also we both made wills in Australia but to run by the side of our English wills and not to replace them. You will find many of these in my ebook but please check as I'm not qualified in Tax, legal or accountancy, this is just as we have found it and I hope it help you on your journey. My ebook is an account of the building of our 3 properties which we still own.
Here in the UK and many parts of Europe it is getting more difficult to get on to the property ladder as houses are getting so expensive to afford. Hence why many people are looking at other countries to own a holiday home, an investment or to go and live more permanent now or in retirement. Thousands have an eye on their retirement when thinking of property abroad. Government figures were published in 2006, show a million British pensioners now draw their state pensions abroad - 241,000 in Australia, 151,000 in Canada, 71,000 in France and 33,000 in Italy.
Australia is not the first place that springs to mind with most people, but why not? It's a wonderful place to bring up children, with so many open areas to visit and the beaches are magnificent, with most developed land within a few miles of the sea. Numerous areas where we feel we are walking back in time possible 20 years or so, where people feel that houses and car don't always need locking when they leave them, where railway crossing gate and traffic lights don't seem to have been invented.
After spending many holidays in Western Australia over the last 20 years visiting my son and his family, we decided 5 years ago that we would like to have a place of our own. Today we own 2 investment properties that are let through a local agent, plus a holiday home.
Western Australia is the part of Australia that we are most familiar with, hence why most of our purchases are there but the laws cover all Australia. WA is less developed than the Eastern part and is still has some way to go to catch up with the prices too. There are so many different parts to it from the wildness of Broome where an aeroplane is the only way to see the countryside, Exmouth for the beautiful coral reefs, ( a well kept secret) Sharks bay to feed the Dolphins when they come in to the shores, a truly magnificent country so wild and uninhabited; many parts are still quaint and have time to have fun, as well as walking back in time, dearly loved by both of us. But the gem is Perth with the Swan river mingling its way through the centre; one must go up to Kings Park and look over the whole of Perth to the sea a short distance away, with many lovely beaches and the Port of Fremantle in the distance.
We mustn't forget Kalgooli, the most fascinating place to go to. This was were the gold rush started at the beginning of the last century and it look as if you are walking on to a film set of one of the latest westerns.
Just take a holiday over there and mix business with pleasure and get the tax man to help with your expenses. Yes, It's a long way but some very interesting places to call off at on the way, airlines are very accommodating.
Buying
There are 4 main differences between buying a house in the UK and Australia:
1. All non-residents must have permission from the FIRB - The Foreign Investment Review Board before they can buy.
A copy of the rules can easily be acquired by e-mail from the government at firbenquiries@treasury.gov.au
Non-residents can only buy virgin land or new houses that have not been occupied before.
a. This is to stop property developers from abroad having land banks of undeveloped plots or sites.
b. To keep the building industry moving ahead and more jobs for their people.
You must start building on the land within the year of purchase. (They soon check up if you haven't submitted plans to the local Shire within the year and want to know why.)
When buying a plot of land or new house, as soon as you make an offer and the owner agrees to accept your offer the Estate Agent will ask you to sign an acceptance form and pay a deposit, this forms part of the contract. This is a binding offer and it works in Australia similar to an exchange of contract does here. (Why we can't implement that system here, as it would solve all gazumping or backing out at the last minute.)
Don't be put off by their rules they are just so simple once you have your head around them and quiet frankly we wish the UK followed them too. Without going into all the very fine detail we have found Australia equally as easy as building in the UK and would recommend it to all who are interested. There are slightly different rules if you are investing with a consortium of investors but we are not covering large investments in this article.
Rising Finance
It is possible to get a mortgage in Australia similar to here in the UK; in fact we took out a 'non status mortgage' for part of monies required when we build our 2 investment properties. We met the Agent filled in the forms and any other paper work the day before flying home and finished the process over the phone and email.
We have had no problems letting the properties, through a local letting Estate Agent and so far they haven't ever been empty more than a couple of weeks over the last 3 years.
Tax and Accountant
We had to apply for an Australian Tax Number and found Accountancy Company based in Perth WA but with offices in Singapore, London and USA, although we do have an UK based Accountant too. Also we both made wills in Australia but to run by the side of our English wills and not to replace them. You will find many of these in my ebook but please check as I'm not qualified in Tax, legal or accountancy, this is just as we have found it and I hope it help you on your journey. My ebook is an account of the building of our 3 properties which we still own.