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Introduction

An introduction to buying property in Australia

Buying a house or apartment in Australia has traditionally been a good long-term investment, although prices can remain stable or even fall in the short term.

This was the case during the recession in the early ’90s, and some experts predict that house prices will fall in 2006 and 2007, before an upturn. Whether you choose to buy or rent will therefore depend largely on how long you’re planning to stay in Australia as well as where you’re planning to live.

If you’re staying only short term (say, less than three years), you may be better off renting. For those staying longer than three years, buying is usually the better option, particularly as paying a mortgage on a house or apartment is generally no more expensive (and often cheaper) than renting. It’s also more difficult to rent than buy a good property in most cities.

Information

Magazines are published by local property associations in major cities and states. Most banks, building societies and credit unions publish free booklets for homebuyers, which generally contain excellent (usually unbiased) advice. The NSW Department of Housing (www.hpaa.nsw.gov.au ) publishes various booklets offering advice about housing.

The Saturday editions of major newspapers are the best for home advertisements, and most of them have a property section. However, the advertised price is sometimes only for the plot, and the building is extra. The measurements of rooms are usually stated in feet and inches and aren’t usually included in advertisements; the size of a house is usually expressed in ‘squares’, where one square equals 100ft2 (9.3m2). The size of a plot may be stated in square metres or acres.

Many estate agents produce free newspapers and magazines containing details of both old and new houses, and colour prospectuses for new property developments. There are a number of free property articles and magazines in Australia, including online articles on the website of the Real Estate Institute of Western Australia (www.reiwa.com.au ) and Australian Property Investor (available at newsagents or by subscription from www.apimagazine.com.au ).

Non-residents

All proposed acquisitions of urban property by non-resident foreigners must be approved by the Foreign Investment Review Board, c/o Department of the Treasury, Langton Crescent, ACT 2600 (Tel. 02-6263 3795, www.firb.gov.au ).