Australia Property Investment At A Higher Cost?
I happened to retrieve an Australia property investment article dated Feb 2015. This article indicates the new aussie government policy to re-enforce the need for foreigners to pay A$5000 (S$5300) for each of the Australia properties purchased or otherwise they may face a 25% penalty of the property purchase price.
With the current weak Aussie dollar against Singapore dollar, will such policy further deters Singaporean property investors from investing Australia property?
Personally, i love Australia lifestyle and culture as i stayed there for a few years. I also have some vested interests in the booming western Melbourne property market due to their local master plan to develop western Melbourne. I preferred the landed properties in the Melbourne city fringe surburb and not those higher priced but smaller condominium units in the central location. Remember, if Singaporeans are to buy foreign properties, consider the impact of TDSR first before you commit the purchase and if you wish to sell your Australia properties, you as a foreigner can only sell them to the local Australians. They will love bigger houses with backyard and garage than smaller condominium units in the city areas.
In my opinion, the cost adder of A$5000 may not deter Singaporeans like myself and especially now the favorable aussie exchange rate at 1.05 and an attractive aussie interest rate. If the exchange rate can hit 1 AUD to 1 SGD, it may be also a very good time to buy Aussie dollars to keep. Refer to the latest aussie bank interest rate cut announcement (dated 1st May 2015) by the Aussie Government.