How Law Changes Have Drawn in More Foreign Real Estate Investors
by Nadine Davis ~ Thanks mostly to new laws regarding the foreign ownership of land in Australia, there are more offshore investors in Queensland property than ever before. The Foreign Investment Review Board changed laws concerning foreign ownership in late 2008. Before that, offshore investors could only own up to 50% of any Australian property. Under the new laws, full foreign ownership in brand new residential construction is now permitted.
The Allure of Australian Real Estate:
Although the pace has picked up significantly in recent years, foreign investors have long been enamoured of the Australian real estate market. Indeed, buyers agents Brisbane are regularly hired by investors from Russia, China, Malaysia, South Africa and other far-flung places. Along with the assistance of a buyers agent, investors like these are able to make extraordinary money from well-chosen investments in property in Qld – especially in Brisbane and the Gold Coast. With full ownership now possible, it’s clear that foreign investments in Australian property are only going to escalate.
Who’s Doing the Investing?
There are two main players when it comes to offshore investing in Australian property: Russia and China. The Chinese invested approximately $22.76 million in the last year alone; Russians invested approximately $22.7m themselves. Since it’s only been a little more than a year since the new laws went into effect, it is quite likely that these numbers are only going to grow going forward. It’s easy to see that the Russian, Chinese and many others are experiencing very favorable outcomes from their investment in Australian property.
The Chinese have been investing in Australian property for quite some time. and continue to be the biggest foreign buyers of property in the country. Russia is quickly catching up, though, as its economy and changing demographics prompt more and more of its citizens to get into the real estate market. Success in the mining and oil industries has armed many Russians with the means to invest seriously in real estate – and Australia is a natural choice. Furthermore, a growing middle class in Russia means that there are more people with expendable income than ever in that country.
The Dubai Connection:
In addition to the changing laws in Australia, developments in Dubai have also played a role in the increasing popularity of offshore investing in Australian property. The real estate market in Dubai collapsed, leaving many investors high and dry – and scrambling for new, more reliable opportunities. For many of them, Australia was a natural choice. Close on the heels of the Dubai real estate market crash, Australian rules and laws changed, opening up the playing field to more foreign investors. All of these converging factors have created key opportunities for offshore investors in the Australian real estate market.
About the Author
There’s no doubt that Buyers Agents Brisbane assist local residents with property investment. Did you realise, that it’s very common for a foreign investor to hire a Buyers Agent Brisbane like Hot Property Specialists www.hotpropertyspecialists.com.au/ to assist in the purchase of their investment?
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