The Property Party - Invest in Australia

About Australia . . . . . . . . . . . . 1

Why Australia? . . . . . . . . . . . . 3

EconomyEducationQuality of LifeProperty Investment

Cities of Australia . . . . . . . . . . . . 11

SydneyMelbourneBrisbaneGold CoastAdelaidePerth

The Buying Procedure . . . . . . . . . . . . 17

Case Study . . . . . . . . . . . . 18

Tax in Australia . . . . . . . . . . . . 19

About The Property Party . . . . . . . . . . . . 20

Contents

Disclaimer

Published May 2015

All photographic content comes with approval from Dreamstime® and www.brisbanemarketing.com.au©.

This brochure has been prepared for educational purposes. It is not intended to provide exhaustive coverage of the topic. The information is made available on the understanding that The Property Party™ is not providing professional advice.

While all care has been taken in the preparation of this brochure, The Property Party™ does not accept any responsibility for any losses suffered by persons relying on information contained in this brochure or arising from any error or omission in the brochure. All research, data, statistics, and sources cited are used for illustrative and informational purposes only and do not constitute an endorsement of any company, organisation, or institute.

Copyright © The Property Party™ May 2015.

Australia is a strong candidate for overseas property investment. It is a First World country with a stable, resilient economy that has experienced positive growth each year since 1991. Australia is pro-free trade and holds bilateral agreements with many countries. It is one of the world’s leading exporters of natural resources and agricultural products.

The country welcomes foreign investment and is in need of increased housing supply, thus there is ample opportunity to invest in Australian property. Australia offers residents a quality of life that is virtually unparalleled: median household income is strong, healthcare and social services are world-class, and life expectancy is high. Australia welcomes overseas students into an outstanding higher education system that produces top-drawer graduates.

Finally, Australia offers a fantastic climate, award-winning beaches, an active outdoors lifestyle, multicultural cities, and diverse cuisine, not to mention world-famous landmarks such as the Great Barrier Reef and the Sydney Opera House.

So join The Property Party and learn more about what makes Australia a top destination for overseas property investment.

Welcome to Invest in Australia

▶ Three Government levels: Federal; State/Territory; Local

▶ Six key states ▶ ACT and NT are treated like states

▶ Deeply multicultural society ▶ Australians descended from peoples of

more than 200 countries ▶ Two or more languages spoken in 20%

of households ▶ Dynamic arts/theatre scenes on offer

▶ 23.7 million people ▶ 3 people per km2

▶ 1.5% annual population growth ▶ 60% of population growth is fuelled by

immigrants ▶ 25% of all Australians are born overseas ▶ National median age: 37.3

People

▶ 9.1 million private dwellings ▶ 2.6 people per household (av. total) ▶ $285 median weekly rent ▶ 1.7 motor vehicles per dwelling ▶ Home ownership is key to the Australian

Dream

Homes

Economy Government

Culture

▶ High-income, services based ▶ 13th largest economy worldwide ▶ US$1.5 trillion GDP ▶ US$64,863 GDP per capita

Geo-Climate

▶ 6th largest country in the world ▶ 7.69 million km2 surface area ▶ Tropical climate: Northern Australia ▶ Temperate climate: Southern Australia ▶ Semi-arid/desert climate: Central

Australia ▶ Extremely diverse geography

About Australia

Australia is a truly unique country. The nation that is also a continent is one of the largest in the world by geographical surface area, yet simultaneously one of the least populated. In spite of this Australia is highly developed and urbanised; particularly its capital cities.

Moreover, despite its relatively small population Australia has emerged as one of the world’s biggest economies and a world-leading export nation, as well as a significant presence on the international political scene.

© 2015 The Property Party Inc1

+8 hours(UTC +8)

+9½ hours(UTC +9 ½)

+10 hours(UTC +10)

Time Zones

▶ The national currency is the Australian dollar (AUD)

▶ The dollar note comes in denominations of $5, $10, $20, $50, and $100

ACST Australia Central Standard Time

AEST Australia Eastern Standard Time

AWST Australia Western

Standard Time

QLD

NT

WA

SA

NSW

ACT

TAS

VIC

Hobart

Melbourne

Brisbane

Adelaide

PerthSydney

AustraliaCapitalTerritory

Tasmania

Victoria

New South Wales

South Australia

West Australia

Queensland

NorthernTerritory

Canberra

Darwin

Currency

Main Languages

1 English (76.8%)

2 Mandarin (1.6%)

3 Italian (1.4%)

4 Arabic (1.3%)

5 Cantonese (1.2%)

12

9 3

Australia is made up of 8 key states and territories

Did you know...

About Australia 2

Australia offers a highly attractive economic and investment environment. The country is financially free, it actively encourages business and investment, and transparency levels are high.

largest economy globally

▶ US$1.8 trillion in investment fund assets (2013)

▶ 11th largest stock exchange globally by domestic capitalisation (2014)

▶ US$37.6 billion in exported products (2013)

▶ A world leader for agricultural exports

▶ 7.1% of world’s overseas students enrol in Australian higher education (2012)

▶ No.4 destination worldwide for foreign students

▶ US$161.6 billion (2013) ▶ A world leader for metal exports,

coal, and natural gas

Economy

13th

Wealth Management

Agribusiness

Education

Fuels & Mining

Strong Economy

▶ Australia has posted positive economic growth every year since 1991

▶ During this period it averaged 3.3% annual growth

▶ AAA certified by all “Big Three” credit rating agencies

▶ 4th freest economy in the world – Heritage Foundation, 2015

▶ 3rd in the world for the soundness of its banks – World Economic Forum, 2014/15

▶ 11th most transparent economy worldwide – Transparency International, 2014

Key Industries

Received

US$592billion

in FDI in 2013


▶ International Tourism Expenditure was US$284 billion (2013)

▶ No.8 globally

▶ Infrastructure ▶ Construction ▶ Real Estate ▶ Scientific and Technical Services

Why Australia?

Fair TradeGlobalMembership

Free TradeNation

Tourism

Other Doing Business

▶ 2.1 million businesses in Australia ▶ 18,000 plus registered foreign

companies ▶ Setting up a business takes just one

procedure ▶ Excellent protection of legal rights ▶ One of the least corrupt

countries globally ▶ The financial services sector has assets

of almost A$6.4 trillion ▶ Australia is the 2nd largest liquid stock

market in the Asia region

Why Australia?

▶ UN ▶ G20 ▶ Commonwealth ▶ OECD ▶ WTO ▶ APEC ▶ ASEAN

▶ USA ▶ Chile ▶ New Zealand ▶ Malaysia ▶ Singapore ▶ Thailand ▶ Korea ▶ Japan ▶ China

Easy

Australia’s US$1.5 trillion nominal GDP equals 2% of the global economy – Australian Trade Commission

Why Australia? 4

Education

Fast Facts

▶ School attendance is compulsory by law ▶ Children generally attend school from age

5-18. ▶ Australia had the world’s highest second-

ary education enrolment rate for 2014/15 ▶ 40% of Australia’s workforce holds a

tertiary qualification or advanced diploma ▶ Australia National University is Australia’s

top institute in the QS 2014/15 rankings

Higher Education

▶ University admission follows 13 years of education, though alternative pathways do exist

▶ 38 public universities and 3 private universities exist in Australia

▶ 33 Universities reached the QS World University Rankings 2014/15

▶ 7 Australian cities named in the QS “Best Student Cities 2015” global top 50 list

TAFE

▶ Means “Technical and Further Education” ▶ Offers professional courses in many fields,

including Finance, Engineering, and IT ▶ Colleges and institutes are located all over

Australia

VET

▶ Means “Vocational Education and Training” ▶ Trains people to join or re-join Australia’s

workforce ▶ Helps people to upgrade work skills or

change careers ▶ Is typically offered by Registered Training

Organisations (ROTs) ▶ 135,000 overseas students enrolled in

2013

Language Courses

▶ Australia offers ”English Language Intensive Courses for Overseas Students” (ELICOS)

▶ 114,000 overseas students enrolled in ELICOS in 2013

▶ Select TAFE and VET providers also provide English courses

▶ Australia is an excellent environment for overseas students looking to learn English

Australia has an excellent education system that produces highly qualified graduates. The country is also one of the world’s leading destinations for overseas students. Australia’s education system is a major reason why its workforce is one of the best educated, multi-

cultural, and multilingual in the world.

World’s4th mostpopular country

for foreignstudents

– Australian Trade Commission


Why Australia?

State/Territory

TotalStudents

Overseas (%)

New South Wales 406,000 21Victoria 344,000 32Queensland 230,700 21Australia Capital Territory 37,000 25South Australia 90,200 25Western Australia 138,100 26Northern Territory 10,800 10Tasmania 26,900 17

State/Territory

QSRanking

Overseas Students

Australian National University

25 5,500

University of Melbourne 33 14,100University of Sydney 38 12,200University of Queensland 43 11,500University of New South Wales

48 13,100

Monash University 70 22,100University of Western Australia

89 5,200

University of Adelaide 100 6,900

International Students

▶ 25% of all students in Australian higher education hail from overseas

▶ 4th most popular destination globally for overseas students in tertiary education

▶ A$15 billion was paid by overseas stu-dents into Australian education in 2013

▶ The “Education Service for Overseas Students Act” (ESOS) protects over-seas students’ rights

Group of EightThe “Go8” is a coalition of Australia’s most prestigious research universities. Go8 universities are distinguished from other Australian tertiary institutes in the follow-ing ways:

▶ More research-intensive ▶ Attracts the top industry and

government grant funding for research ▶ Best top-tier institutions in Australia

according to international surveys ▶ Produced every Nobel Prize winner

educated at an Australian university ▶ Lower student-staff class ratios ▶ Attracts highest performing Australian

and overseas students ▶ Alumni earn key positions in

professional life, business, and government in Australia and abroad

Australia has the 9th best scientific institutions worldwide – World Economic Forum “Global Competitiveness Report 2014-15”

Source: Department of Education and Training, 2014

Sources: QS “World University Rankings 2014-15”; Department of Education and Training, 2014

Why Australia? 6

Australia is widely regarded as one of world’s most liveable countries thanks to its excellent healthcare and social services systems, civil freedoms, sunny climate, active lifestyle, strong spending power, high life expectancy, and overall work-life balance.

Quality of Life

Living Standards

▶ First world country ▶ 5th highest GDP per capita income

globally ▶ Highly developed, urbanised cities ▶ 1,736 ultra-high net worth individuals in

Sydney, Melbourne, Perth, and Brisbane alone

Activities

▶ Hundreds of landmarks and attractions ▶ Competitive sport-oriented society ▶ Theme parks for families ▶ Diverse geography for outdoors

enthusiasts

Lifestyle ▶ Sunny climate countrywide ▶ Relaxed approach to life ▶ World-class beaches ▶ Strong consumer culture

Healthcare ▶ Healthcare, or “Medicare”, is universal and

publicly funded ▶ Facilities and healthcare professionals are

world-class ▶ 4th largest superannuation system

globally ▶ 82 years average life expectancy

Popularity ▶ Australia attracts millions every year ▶ 6.1 million international visitors in 2013/14 ▶ 7.6% annual tourism growth on previous

year for 2012/13 ▶ 70% of visitors came from Asia

Culture

▶ Multicultural society ▶ Famous for wines and viticulture ▶ Excellent arts, theatre, and music scenes ▶ 19 UNESCO World Heritage Sites

Australia ranks 2nd worldwide for human development – United Nations Development Program

“Human Development Report 2014”


World’s Happiest Country

Australia is Top 10

globally for long life

expectancy

– OECD “Better Life Index

2014”

– World Economic Forum “Global Competitiveness

Report 2014/15”

Why Australia?Australia is the 2nd best country in the world in which to be born Economist Intelligence Unit – “Global Competitiveness Report 2014-15”

Why Australia? 8

Depreciating Currency

▶ AUD has depreciated against the USD (see Chart 1)

▶ At the start of May 2015 the AUD fetched 78 US cents

▶ This increases purchasing power for foreign investors (see Table 1)

▶ Cross border capital flows increase due to AUD depreciation

▶ This in turn drives higher sales volumes and asset prices

Rapid Population Growth

▶ Immigrants comprise 60% of Australia’s population growth

▶ Australia has one of the most urbanised populations globally

▶ In 2003, inflows of high net worth individuals into Australia totalled 22,000

▶ In 2013, inflows of high net worth individuals into Australia totalled 158,300

▶ No.2 destination for Asian investors globally

Property Investment

Australia is an excellent destination for property investment. The country offers excellent investment options, it has an environment conducive to property growth, and investors are in a solid position to profit from their investment. As a result, Australia today is a

leading destination for Asian property investors.

InternationalCurrency

1st May 2013

1st May 2015

Difference%

1st May 2013

1st May 2015

AUD/CNY 6.34 4.85 23.5 3,170,000 2,425,000AUD/HKD 7.98 6.05 24.1 3,990,000 3,025,000AUD/MYR 3.12 2.80 10.2 1,560,000 1,400,000AUD/SGD 1.26 1.03 18.2 630,000 515,000

Source: XE.com

Table 1: Example of Potential Savings due to Depreciated Currency

Currency appreciation against AUD AUD $500,000 property

14 Reasons to invest in Australian Property1. Capital growth

2. Real, tangible asset

3. You control your investment

4. You can own as a non-resident

5. It gives you options (e.g. live in or let out)

6. Transparent laws, rules, and regulations

7. Strong property protection rights

8. Property prices are stable

9. Safe investment

10. You can mitigate risk (e.g. insure it)

11. It is subject to high building standards

12. Anyone can invest in Australian property

13. Home ownership is highly valued in Australia

14. There are potential tax benefits


Strong Housing Demand

▶ Most Australians live in major cities ▶ Population growth is among the

OECD’s highest (see Chart 2) ▶ There is a significant housing shortfall ▶ Millions of Australians rent to live ▶ There is significant demand for

rentable property ▶ Property investors benefit from

sustained demand ▶ Property price growth is expected to

continue (see Table 2)

Significant Investment Visa

▶ This visa offers immigration through investment

▶ AUD $5 million investment minimum ▶ Permanent residency is attainable

within four years ▶ A state government nomination is

needed to apply ▶ Applicants must also comply to

additional criteria ▶ For more details visit www.immi.gov.au

Why Australia?

In May 2015 the Reserve Bank of Australia cut interest rates to a historic low of 2%

Did you know...

CapitalCity

House Price ($)

Growth Rate (%)

Sydney 690,000 13.9Melbourne 518,000 5.6Brisbane 445,000 2.7Adelaide 405,000 2.2

Perth 513,000 -0.1

Table 2: Median House Prices and YOY Growth

Chart 1: The Fluctuating Australian Dollar

Chart 2: Population Growth

Note: Median prices are based on sales over the three months to March 2015 and the figure is the combined median for houses and units. Percentage growth is calculated on the change in the RP Data -Rismark Home Value Index between 31 March 2014 and 31 March 2015.Source: RP Data

US$

2006 2009 2012 2015

USD per 1 AUD

1.00

1.15

0.85

0.70

100

198

2

198

4

198

6

198

8

199

0

199

2

199

4

199

6

199

8

200

0

200

2

200

4

200

6

200

8

2010

2012

200

300

400

500Total Growth

Pe

op

le (‘

00

0)

Natural Growth

Net Overseas Migration

Source: ABS

Source: XE.com

Why Australia? 10

Sydney

Sydney surrounds one of the world’s largest natural harbours and spreads west towards the Blue Mountains. The

city has a population of 4.8 million. Sydney is Australia’s most iconic city, famous for the Sydney Opera House, its great climate, beach culture, and many other attractions. Sydney is one of the most multicultural cities in the world.Sydney is one of Asia-Pacific’s leading

financial centres and it houses key institutions like the Reserve Bank of Australia and the Australian Stock Exchange. Sydney is Australia’s strongest hub for business and hosts the headquarters of 40 per cent of Aus-tralia’s top 500 companies. It is also one of the country’s leading centres for education. Its excellent infrastructure includes Australia’s busiest airport, which serves 37 million a year.

▶ Why Sydney?

Great climate

High quality of life

Australia’s top economy

Key global city

Top city for the super-rich

Hugely multicultural

Student city

Green city

▶ Australia’s top financial and business centre

▶ Biggest home for Australia’s super-rich

▶ 4th best student city globally, says QS ▶ Four universities in the top 300 – QS

▶ One of Australia’s sunniest capitals ▶ Warm-to-hot summers; mild winters

Climate

▶ 10th most liveable city globally – Mercer ▶ Green city status – The Economist

Liveability

Global Importance Finance

Education

▶ Certified a key “Alpha+” global city – GaWC

▶ Hosted the 2000 Summer Olympics

City ▶ State capital of New South Wales ▶ Biggest city in Australia


Top quality of life

Financial centre of Victoria

Global city

Capital of culture

Outstanding infrastructure

Ultimate sports city

Top student city

Green City

Melbourne

Melbourne is situated on the natural bay of Port Phillip near the Yarra River estuary. The city has a population

of 4.4 million. Melbourne is Australia’s cul-tural capital and offers many outstanding art, theatre, and musical attractions. Melbourne performs highly in global liveability surveys every year. It has been voted the world’s top sports city by Sports Business International.

Melbourne is the financial centre of Victoria and hosts key Australian institutions including the headquarters of ANZ and National Austral-ia Bank, and the Federal Government’s Future Fund. Melbourne is Australia’s top destination for higher education. It also provides Australia’s busiest general cargo seaport and the world’s largest urban tram network, as well as Melbourne Airport, which serves 30 million people a year.

▶ Held the 2006 Commonwealth Games ▶ Hosted the 1956 Summer Olympic

Games

▶ 2nd best student city in the world – QS

▶ 90,000 overseas students in higher education

▶ Relatively cool, wet weather ▶ Warm-to-hot summers; cold-to-mild

winters

Climate

▶ No.1 most liveable city globally – The Economist

▶ Top city for human capital and lifestyle – fDi

Quality of Life

Global Importance Major Events

Education

▶ UNESCO City of Literature ▶ Certified an “Alpha-” global city

– GaWC

City ▶ State capital of Victoria ▶ 2nd biggest city in Australia

▶ Why Melbourne?

Cities of Australia 12

Brisbane

Brisbane is situated along the Bris-bane River, between Moreton Bay and the Great Dividing Range. Brisbane

has a population of 2.1 million. The city and its surrounding area offer a sunny climate, high quality of living, beaches, nightlife, and popular art and theatre scenes. Major tour-ism destinations like the Gold Coast and the Sunshine Coast are accessible via Brisbane.

Brisbane is the financial centre of Queensland and one of Australia’s fastest growing cities. Property is more competitively priced than in either Sydney or Melbourne. Brisbane is one of Australia and Asia-Pacific’s top cities for stu-dents in higher education. The city provides ex-cellent infrastructure that includes the nation’s fastest growing seaport and its third-busiest airport, which serves 21 million people a year.

▶ Green City status – The Economist ▶ Clean city; many parks and waterways

▶ 23rd best student city in the world says QS

▶ Three universities in world’s top 350 – QS

▶ One of Australia’s sunniest capitals ▶ Hot, humid summers; dry, warm winters

Climate

▶ 36th best city most liveable city globally – Mercer

▶ Coolest city in Australia according to Lonely Planet

Liveability

Global Importance Environment

Education

▶ Hosted World Expo 1988 ▶ Held 2014 G-20 Summit

City ▶ State capital city of Queensland ▶ 3rd biggest city in Australia

Great climate


Financial Centre of QLD

Rapidly growing population

Global City

Student city

Green city

Coolest city in Australia

▶ Why Brisbane?


Gold Coast

The Gold Coast is situated in the southeast corner of Queensland about 69 kilometres south of Brisbane and has a population

of 500,000. The city is the theme park capital of Australia and hosts the likes of SeaWorld, Movie World, and Dreamworld. It is also known for its many golf courses, sunny climate, and popular beach resorts, such as Surfer’s Paradise. The city will host the 2018 Commonwealth Games.

The Gold Coast attracts 12 million visitors each year. Tourism is important to the city’s economy, as are the rapidly growing hospi-tality, entertainment, and real estate sectors. Property has seen a rsurge in foreign invest-ment, particularly from China. The city offers relatively low living costs and a supportive busi-ness environment. The Gold Coast is connect-ed to major Australian cities by air and highway.

▶ 57km of beaches ▶ Famous theme parks, beaches, and golf

courses

▶ Two universities in the top 500 – QS ▶ Situated close to student city, Brisbane

▶ Fantastic year-round climate ▶ Hot, humid summers; warm winters

Climate

▶ 12 million visitors a year ▶ Major foreign property investment target

Economy

Global Importance Attractiveness

Education

▶ Home to the 2018 Commonwealth Games

▶ Hosts the PGA Australia Championship

City ▶ 6th biggest city in Australia ▶ Largest non-capital city

Great climate

City of beaches

Golfer paradise

Theme park capital

Rising global importancezzzz

Low cost environment

Major foreign investment target

Several excellent universities

▶ Why Gold Coast?


Adelaide

Adelaide is situated on the Adelaide Plains between Gulf St Vincent and the Mount Lofty Ranges. Adelaide

has a population of 1.3 million. Adelaide is a planned city known for its wide boule-vards, parklands, and great festivals. It offers a great nightlife, cuisine, and ready ac-cess to a host of nearby beaches and islands.Adelaide is Australia’s leading wine destination,

hosting famous wine producing regions like the Adelaide Hills and Coonawarra. Adelaide hosts the National Wine Centre’s “Wined Bar”, which offers Australia’s largest selection of pre-mium wine by the glass. Adelaide is also nota-ble as the nation’s most affordable capital for living costs and real estate. Adelaide is also efficiently connected: commuting from Adelaide Airport to the city centre takes just 15 minutes.

▶ Green city status – The Economist ▶ 70km of pristine beaches

▶ 29th= student city globally, says QS ▶ Three universities in world’s top 500

– QS

▶ One of Australia’s sunniest capitals ▶ Hot, dry summers; mild winters

Climate

▶ 2nd most liveable Australian city – The Property Council of Australia

▶ 5th most liveable city globally – Mercer

Quality of Life

Leisure Environment

Education

▶ 9th best travel destination worldwide – Lonely Planet

▶ Most live music bars/clubs per capita in Australia

City ▶ State capital of South Australia (SA) ▶ 5th biggest city in Australia

Top quality of life

Wine capital of Australia

Financial Centre of SA

Competitive property prices

Planned city

Student city

Green city

Festival city

▶ Why Adelaide?


Perth

Perth is situated on the Swan Coastal Plain, which lies between the Indian Ocean and the coastal escarpment of Darling

Scarp. Perth has a population of 2 million. The city offers one of Australia’s finest climates plus many bars, cafes, restaurants, and pris-tine beaches. Perth is also located near Swan Valley, which is known for its excellent wines.Perth has great prospects. It is Australia’s

fastest growing city and has seen rapid economic growth in recent years. Perth is the financial centre of Western Australia, which is the nation’s leading state for natu-ral resource extraction and a key part of Australia’s export strategy. The city provides excellent infrastructure and acts as the in-ternational hub for Western Australia. Perth Airport serves 13 million people a year.

▶ Green City status – The Economist ▶ Clean city; many parks and waterways

▶ 38th best student city globally, says QS ▶ Three universities in the top 600 – QS

▶ Sunniest capital in Australia ▶ Hot, dry summers; mild, wet winters

Climate

▶ 9th most liveable city globally – The Economist

▶ Most restaurants per capita in Australia

Quality of Life

Economy Environment

Education

▶ Hub for resource processing and export ▶ No.3 city for the country’s super-rich

City ▶ State capital of Western Australia ▶ 4th biggest city in Australia

Best climate in Australia


Financial capital of WA

Key city for the super-rich

Fastest-growing Australian capital

Restaurant capital of Australia

Student city

Green city

▶ Why Perth?


The Buying Procedure

▶ Work out your investment motivations and your preferred property type

▶ Submit an expression of interest ▶ Send a small deposit

(AUD $5,000)

▶ Appoint a solicitor to handle your transaction

▶ 50% of a solicitor’s fee is paid on appointment

▶ Execute the Sales and Purchase Agreement

▶ Pay the balance deposit (10% of the purchase price)

▶ Seek mortgage preapproval ▶ Do this if you are borrowing

from a bank ▶ Do this 3-5 months prior to

settlement

▶ Appoint a rental manager ▶ Do this is if you plan to rent out

the property

▶ Settlement ▶ Pay the remaining 90% of the

purchase price

▶ Complete a depreciation schedule

▶ Engage an experienced accountant

▶ Continue to collect rent ▶ Pay expenses

▶ Search for a property

▶ Select a property

▶ Repeat!

Buying property in Australia is subject to government procedures, rules, and regulations. The following procedure is typical for investing in new property in Australia. We recommend that you consult a specialist

and perform your own due diligence before purchasing property overseas.

Start


Case Study

Mandy is the 35-year old director of an international company head-quartered in Hong Kong. Mandy is

a hard-working high-middle income earn-er who has recently developed an interest in property investment overseas. She has a particular interest in investing in Austral-ian real estate (Sydney in particular) as her brother recently purchased a property there and was very satisfied with his investment.

Mandy wants to buy a two-bedroom apartment of no more than AUD $850,000 in a vibrant part of Sydney that is well-connected by public transport. She begins her search online and contacts several reputable local agents who send her options in different parts of the city’s central and suburban areas. She selects an apartment in the CBD valued at AUD $835,000 and pays the requisite AUD $2,000 holding deposit.

Before signing the contracts, Mandy finds The Property Party, which helps custom-ers make savings on their overseas property acquisitions. She contacts the head office and arranges to attend one of their events, where she learns a lot more about different markets in Australia. She plays the game to educate herself and to experience property buying and selling. By doing so, she learns the core aspects of investing in Australia:

▶ The purchase process; ▶ The importance of rental return and

capital growth; ▶ Different demand drivers to consider

when selecting a property for investment; ▶ Financial aspects, such as net and gross

return, and other expenses and benefits a property can bring

By applying this new knowledge, Mandy decides not to commit to her original pur-chase. Instead, she locates a different apart-ment in an up-and-coming neighbourhood

that she feels offers better prospects. She pays AUD $780,000 for the property. Mandy is still in need of additional assistance, so The Property Party helps by building a property in-vestment team around her, including the following:

▶ A solicitor; ▶ A mortgage broker; ▶ A rental agent

Mandy learned from The Property Par-ty. As a result, she saved thousands of dollars in buying costs and made a wise invest-ment decision. Moreover, she has developed confidence in her ability to invest in overseas property. Her investment team will manage the property and ensure that it maximises its rental income and growth potential. This enables Mandy to profit from her investment whilst enabling her to focus on her career and enjoying peace of mind.500,000 USA

Education is key to making smart investment choices for investing in property in Australia. We recommend that you consult a specialist and perform your own due diligence before purchasing property overseas.

The Buying Procedure 18

Ways to deduct tax liabilityAcquisition and Maintenance Costs

▶ You can offset expenses relating to your investment property against rental income

▶ Examples: Bank fees, advertising for ten-ants, legal and tax-related expenses, etc.

Depreciation Allowances ▶ Landlords are eligible to claim deprecia-

tion on newly purchased items ▶ Examples: Appliances, blinds, carpets,

furniture, hot water systemNegative Gearing

▶ Negative gearing allows losses on your property to be deducted from your gross income

▶ This creates a reduction in your tax liability

Stamp Duty ▶ This tax is payable on the transfer of

Australian property ▶ Rates vary by tax brackets and by state

Property 1 Property 2A$450,000 A$700,000

State Payable Duty Payable DutyQLD A$14,175 A$24,525VIC A$22,070 A$37,070

NSW A$16,061 A$27,311SA A$22,260 A$37,647WA A$15,800 A$27,265

Income Tax ▶ You need to pay tax on income (e.g. rent) ▶ Residents tax: 0% - 45% ▶ Non-residents tax: 32.5% - 45% ▶ Medicare: 2% extra (residents only)

Capital Gains Tax (CGT)

▶ CGT is payable on profit made from selling your property

▶ The rate is the same as the income tax rate you pay

▶ 50% discount applies if you sell after 12 months’ ownership

▶ Inheriting then selling a deceased person’s home is CGT exempt

▶ The inheritance rule does not apply to foreign residents

Land Tax ▶ This is an annual payable state tax ▶ It is based on the taxable value of your

land ▶ The value of your property is NOT

affected by land tax ▶ Some properties are free from this tax

Ta小x in Australia

For more information about national and state taxes in Australia visit:

National taxes – http://www.ato.gov.au QLD – https://www.osr.qld.gov.au/

VIC – http://www.sro.vic.gov.au/NSW – http://www.osr.nsw.gov.au/

SA – https://www.revenuesa.sa.gov.au/WA – http://www.finance.wa.gov.au/

Australian residents are taxed on their worldwide income, although Australia has double taxation agreements with many countries. Most foreign income is tax exempt for foreign residents, and foreign

residents are generally taxed only on their Australia-sourced income.

State Land Tax Starting PointQLD A$600,000VIC A$250,000

NSW A$432,000SA A$316,000WA A$300,000


About The Property Party

Our primary purpose is to educate prospective buyers about real estate opportunities in many different countries. We aspire to provide buyers with the tools they need as well as the k n o w l -

edge and the confidence necessary to make key investment decisions.

WHICH STRATEGY SHOULD I USE?

Through our approach you can see for yourself. Will

you choose an aggressive, high capital growth strat-

egy, a stable rental return, or a balanced portfolio? Break it down and see

what works for you. The choice is yours.

THERE ARE TOO MANY OPTIONS!

There are millions of investment property

options around the world. Our approach enables you

to pinpoint the right investment by exploring

different options across a range of countries, cities,

and investment types.

EXPLORE DIFFERENT SCENARIOS

We have created a huge range of scenarios and missions to help you ex-plore the global property market. Try it out and see what works for you. You can even challenge your

friends and family to deter-mine the ultimate investor.

WHAT HAPPENS IF...

You decide to sell; to buy in Brisbane instead of

London; or choose growth over return? We have devised methods that

enable you to test outcomes for many

scenarios while remaining risk free and in control.

SIMULATING PROFIT AND LOSS

We simulate a full range of buying, maintaining, and

selling costs. Your participation will

enable you to learn the essentials quickly and to evaluate the performance

of each investment.

GROW YOUR PORTFOLIO

Immerse yourself in the evolution and growth of

your portfolio. We offer the power to track the performance of each

property and the quality of your every investment.

About The Property Party 20

SourcesOur educational materials utilise research from a wide variety of respected sources. For a complete list of the sources used in this publication, please visit our website.

21st Floor, 23 Luard Road (The Phoenix Building),Wan Chai, Hong KongT: +852 6074 0926E: [email protected]

Contact Us

www.thepropertyparty.comfor more information please visit:

The Property Party - Invest in Australia

Real Estate

Transcript of The Property Party - Invest in Australia