Singapore & Overseas Property Hunt 

 

 

About Australia (Mebourne) Property  "investing with confidence"

 

The latest Singapore cooling measures, such as additional buyer stamp duty (ABSD) for buying residential properties and Total Debt Servicing Ratio (TDSR) obviously hit real estate market in last quarter in 2013. 

Due to affordability, a lot of Singapore investors have started to eye and invest in Australia.

 

Below are some common questions encountered during my service to Melbourne Property buyer:

 

 

 

1.  Why Melbourne?  Why not Sydney?

 

Melbourne is the capital of Victoria.  Melbourne currently has over 4.25 million people, just behind Sydney that has 4.67 million people.

Although Melbourne is the second largest city in Australia, but it has continuously dominating the Australia's population growth for the 11th year in a row. 

The average annual growth rate for the past years was 1.9%.

It is expected to boom past 5 million people by 2025 and overtake Sydney's declined population growth before 2040.

In addition, Melbourne has been crowned the world’s most liveable city for the third time in a row.

 

[For your information, in 2013, Singaporean company Chip Eng Seng has paid around AUD$45.2 million for the landmark St Kilda Road, Melbourne property  through its Australian subsidiary CES Properties (Australia).  The sale of this property is a further demonstration of the exceptionally strong off-shore buyer demand for high quality Melbourne investment assets.]

 

 

 

 

 

2. What is the median age and household income in the Melbourne?

 

Compared with the other regions in Victoria, Melbourne’s population are generally younger and have higher incomes.

The median age in Melbourne is 36 years old.  Median household incomes in Melbourne city is $1,333 per week.

 

 

 

 

 

3.  What was the growth of employed persons in Victoria?

 

The number of employed persons in Victoria grew by 292,000 between 2006 and 2011.  Victoria had the largest single increase in the number of employed persons during this period, followed by New South Wales (285,000) and Queensland (254,000). Victoria has the second largest labour market, following New South Wales.

 

 

 

 

 

4.  What were the main industries in Victoria?

Population Services, Business Services, Property, Construction and Utilities.

 

 

 

 

 

5.  Can foreigners buy resale housing ?

 

Only Non-Residences cannot buy resale housing. 

However, permanent resident or who possess long term visa and foreigners who stayed in Australia for more than one year can also own resale housing.

 

 

 

 

 

 

6.  How much is the buyer stamp duty?

 

For off-plan housing (means property that have not start to construct) in Melbourne, you just need to pay 0.55% of the purchase price.  But take not that stamp duty for buying completed property in Melbourne is 5.5%.

 

 

 

 

 

 

7.  Any other tax?

 

You can advised to spend about A$600 per year to engage a professional accountant to get rebate of taxes, which can be sufficient to waive the seller capital gain tax when you are selling the property.

Foreigners sellers need to apply for FIRB approval,  it will cost about A$4000 (SGD$).

 

 

 

 

 

8. How much a foreigner can loan?

 

You can loan up to 70% of purchase price.  During construction period, you do not need to pay loan interest.

Currently bank interest is around 4.5% , which is historical low. 

 

 

 

 

 

9 .  How is the rental market in Melbourne?

 

At CBD, you can get around 6% rental yield.  

It's positive cashflow !

 

 

 

 

 

10.   What is foreigners quota to buy condominium property?

 

Usually up to 50% of the owners of the total condominium units.

 

 

 

 

 

 

 

 

 

Disclaimer

 

The information contained in this website is for information purposes oly and is not intended to replace any financial or professional advice.  The views expressed are entirely those of the authors.Whilst the information is intended to be accurate and current, we are not responsible for any errors or omissions in this document. We may vary, withdraw or amend any information presented herein at any time without notice.To the fullest extent permitted by law, in no event shall we be liable for any damages or costs, including without limitation any indirect, consequential, special, incidental, or punitive damages arising out of, based on, or resulting from your reliance on or use of the information herein.No part of this document may be reproduced except as authorised by written permission.