The news is out; Australia is the fastest growing first-world property market boasting a stable economy and steady growth year-after-year. To safeguard your hard-earned wealth, diversify your portfolio and accumulate more wealth over the years against a stronger currency; offshore property investing has become popular in South Africa. Countries like the United Kingdom, Portugal and Mauritius are firm favourites among those who have invested abroad. Australia is now fast becoming a popular choice as an offshore property investment destination, and this is how you can take advantage of the property opportunities.
Understanding how it works
Investing in Australian property has been designed to be seamless and hassle-free. Investors do not need to set-up a company in Australia or purchase property with an Australian citizen; instead Government approval for foreign investors is simple and inexpensive. To make this process even more effortless and easy, Invest Australia will assist investors through the process. It is also important to note, that although minimal, there are some restrictions when it comes to the types of property investments that foreigners are allowed to purchase, such as foreign investors are only allowed to purchase pre-construction or newly built residential properties.
Learn more about the process
The process to purchase in Australia is not far from the process you would be familiar with in South Africa. To start, once you have identified the purchasing opportunity, you would need to sign the reservation agreement, pay a 30% deposit within 14-days and when the sale is green-lined, a full sales agreement is presented for all parties to sign. Thereafter, a further 20% is payable within 6 months, as you will need 50% equity. Go through the Foreign Investment Review Board (FIRB) for approval and application, of which this process should take only 30-days. Similarly, like you would need for a sales process in South Africa, you would be required to send through all FICA documentation and the loan application will be processed and approved through Westpac. Devmco will facilitate the sales process, including a trip to Australia to complete loan application documents and open bank account.
How to rent in Australia
Following the transfer and completion of construction, the next step would be to rent your investment out. Signature Management Real Estate, situated in Australia, has teamed with Invest Australia to assist with the rental of all properties. As a trusted Australian real estate management team, they would manage the rental process from advertising the premises, finding the correct tenant, paying the levies and rates on behalf of the owners, to collecting rental and paying the rental collected into the owner’s bank account.
The South African Wealth Report 2018 by New World Wealth reveals that South Africa’s High Net Worth Individuals hold 17% of their wealth in offshore prospects and is expected to increase to 22% by 2027. Be sure to capitalise on Australia’s ever-growing wealth and steady economy, register your interest and learn more about property development investment opportunities prior to public release.
