elksa

Hi guys,

Went to the migration fair last weekend and spoke to as many people as we could.

Several people advised us that investing in a property in Australia was advisable sooner rather than later. This seems like a good idea as we're looking at moving to the Gold Coast, possibly Coomera area, and house prices seem to be rising rapidly. Has anyone else done this and if so how were your experiences? Any opinions on Coomera would be welcome as well? as would other suggestions of nice places close to the Gold Coast and within commuting distance to Brisbane.

We also received conflicting reports regarding the type of property we could buy. We are applying for a skilled migrant visa and were told that we could only buy new property until we become Australian citizens. Is this right? Does anyone know of any websites where we can look into buying land and having a property built within the Coomera / Gold Coast area?

Thanks.

MikeStanton

Be very careful about investing in property - when Oz interest rates are going one way...up! In Oz there were various stories of unscrupulous guys flogging investment properties in Queensland (eg Gold Coast). Generally, there are way too many investment properties in many parts of Oz. Just like UK, it has been fuelled by low interest rates and, unlike UK, 'negative gearing' (tax deductability).

No doubt there are good investments to be made somewhere - but ensure that the capital growth and rental returns underpin them.

kittenlips

As long as you have permanent residency, you can buy any type of property, you don't have to be an australian citizen! As far as I'm aware that rule of buying new only applies to people who want to buy holiday homes who are living outside OZ.

Regards

Gary / Terri

Elksa
I would also add a note of caution for what it is worth, having looked at the same I was advised by an IFA equiv. in Aus from the HSBC bank that this was a great investment some 2-3 years ago but now as they say the chickens are coming home to roost and you could be in negative equity before you know it...remember what happened in the UK with all those people losing thier houses when the crash came last time...as Hill street blues says.....be careful out there>>>>>>

Gary / Terri

elksa

Thanks for the response Gary / Terri, your response suggests that you feel a down turn is looming within the Aus property market? Is there any specific reason for this, they keep predicting a down turn over here in England but still house prices continue to rise. Is it because the Aus interest rates are gradually going up? Do you think interest rates are going to go up any more within the next year?

Gary / Terri

Elksa
if I knew the answer to your last point I would be a very rich man....however I use for my judgement the following, in Aus. many properties are auctioned and at present more than 40% are not reaching the reserve and therefore they are not selling and they have to look at taking offers from the for sale route...also as you say interest rates are in creasing and therefore this has an effect, the increase over the last three years of upto 200% just cannot be sustained and therefore a crash or hard braking soon is inevitable in my book, plus advice from a third party HSBC who say the same and advised me against it i think speaks highly..but hey I did not get one lottery number in my 6 chosen ones last week so what do I know

Gary/ Terri

parkhigh

Hi
We are watching the interest rates with avid interest. As we are hoping to go later this year we are hoping that we will be able to get a house for a fair price. When we visited last year prices were rising rapidly and we were concerned that we might be priced out of the market, so good news for us. not so good for those of you already there.
irene

bondipom

Do not touch the Australian property seminars operating in London. They are operated by rip off merchants who sell you a flat that is overpriced and tell you fibs about the rent returns and vacancy rates.

If you are going to buy I would get on the ground here and avoid any kind of seminar and new apartment.

The good news is for those with land and in need of a builder. The drop off in approvals will mean builders will be hitting the market in the next year.

ABCDiamond

Agreed, with one addition, beware of property seminars operating ANYWHERE !

A further point on Rent Returns, there are properties around being sold with the owner wishing to rent back from you for 12 months or so. Beware of artificially inflated rents. eg: If the house is $300k, and the owner offers $400pw in rent, thats only costing him an extra $7,800 for a year, and may convince a buyer to pay well more than this in a higher purchase price.

In the last few days I have noticed house prices in my area are very confused at the moment.

Some sellers, who have read in the papers that there is a price crash coming, are selling at a low price.

But others who have read that SEQLD still has about 35% growth over the next 3 years, are maintaining high prices, and getting them.

In other areas, where property has been priced with future years growth built in, they are having to bring prices back to a real figure.

I have one property in Sydney West, where one agent told me it was worth $480k, ( I put it on the market at that price), another has told me it is worth $435k. They don't seem to have a clue !! Working on price data that I have, I feel that $435k is more realistic. So we are dropping the price to its real value, and NOT it's over inflated price. Some people might read that as a price drop in the area of about 10%, but it isn't really. (I hope that lot is understandable to you all , I haven't had my 2nd cup of coffee yet, and my brain is complaining )

However up here in SEQLD, I am being told that a property that would have got $280k in December, will now sell easily for $320k.