Advice on Australian property

[Heathcliff]

hi all

looking at investing in a piece of Australian residential property. which area should I look at? I'm looking to rent out so i thought places like Sydney, Melbourne, even Perth should be safe.

Have the prices in these areas come down a lot? is its easier to rent out an apartment compared to a landed property?

[JBA]

Better buy in Singapore lah

[Kubes.SG]

Wow Heathcliff, you had better head back to the Yorkshire moors if you call major Australian cities "areas".  Each are bigger and more diverse that all of Singapore.

Yes, the prices have come down, but the not a lot compared to the declines in SG, US and UK.  The is no rule as to what is easier to rent out as it depends on the location, quality and price, but at the moment the vacancy rates in most cities are less than 3%, sometimes less than 1% but you don't see greedy landlords doubling the rents in 12 months as they understand you can't murder your tenant and still make money.

Since this seems to be an investment, the things you will need to factor for buying in AU are land tax, capital gains taxes, interest rate changes and forex changes.  

[perth]

sure is diverse:

"In 2006, the largest ancestry groups in the Perth metropolitan areas were: English (534,555 or 28.6 per cent), "Australian" (479,174 or 25.6 per cent), Irish (115,384 or 6.2 per cent), Scottish (113,846 or 6.1 per cent), Italian (84,331 or 4.5 per cent) and Chinese (53,390 or 2.9 per cent). There were 3,101 Aboriginals in the city (0.2 per cent).[26]"

Just think of all that cultural whiplash between the festivities of the English, Australians and Irish.

I think we'll just put this down as another example of Oz Rules/Singapore Bites Syndrome that has affected a certain poster.

[marriedguy]

Prices are dropping, especially in Perth. I would hold off, the market has not bottomed out yet.

[Kubes.SG]

sure is diverse:

"In 2006, the largest ancestry groups in the Perth metropolitan areas were: English (534,555 or 28.6 per cent), "Australian" (479,174 or 25.6 per cent), Irish (115,384 or 6.2 per cent), Scottish (113,846 or 6.1 per cent), Italian (84,331 or 4.5 per cent) and Chinese (53,390 or 2.9 per cent). There were 3,101 Aboriginals in the city (0.2 per cent).[26]"

Just think of all that cultural whiplash between the festivities of the English, Australians and Irish.

I think we'll just put this down as another example of Oz Rules/Singapore Bites Syndrome that has affected a certain poster.

That is interesting, but not relevant to this conversation.  You remind me of my silly (female) HR people who are have set diversity goals for the levels here in Asia through the organization based on only gender.  I have given up explaining to them that diversity encompasses: religion, age, race, gender, sexual persuasion, even able bodiness.   

So in the context of this discussion the dimensions of diversity I referred to include:  types of housing,  physical size,  regions within the cities,  build quality,  land values,  income levels, economic and population growth/decline rates,  taxes levels,  ownership/rental ratios,  etc.

I used SG as a common benchmark since the OP did not indicate where he is from (though he hinted the Yorkshire moors).
 
Use you brain next time before carrying on like an idiot.  Are you in HR?

[HR Guy]

Use you brain next time before carrying on like an idiot.  Are you in HR?


Ouch to me

[Heathcliff]

Thanks guys.

I heard there is capital gains tax (20%?) on property, so its probably harder to make money there than in S'pore. Hoping that the rental would be more stable though.

Is there a website like our URA website which shows us transacted prices in Sydney, Melbourne or Perth?

[tax]

Since this seems to be an investment, the things you will need to factor for buying in AU are land tax, capital gains taxes, interest rate changes and forex changes.  

Isn't rent also taxable in Australia?
 

[tax]

LOL I believe everything is taxable in Australia.  Relating to real estate, you would likely be liable to pay:

- GST
- Stamp Duty
- Land Tax (annual)
- Capital Gains Tax
- Tax on Rental Income (Annual)
- Property Tax (Annual)

In addition, transactions costs (commissions and legal) are higher in Australia than Singapore and mortgage rates are more expensive.

The lower rental yields in Singapore are generally scoffed at by many of the 'expert investors' on this board, but the reality is that your net yield is probably higher on residential property here than most places in Australia (if buying at today's prices).  Doubt you are cashflow positive in Sydney or Melbourne unless you are putting 50% down or more.