01 October 2008

Australia third best location for property investment after London and NYC

According to a property expert in South Africa, Australia is the third best destination in the world for property investment, after London and New York City, reports iafrica.com.

According to the expert, Australia’s political stability, economic strength, inviting climate, low crime rate, growing population, and comparable GDP to most European countries makes it a prime destination to buy property. 

South Africans are particularly drawn to buying property in Australia as its comparable culture, climate and good exchange rate make it a popular destination for emigration.

For overseas nationals wishing to buy property in Australia, they must be holders of specific Australian visas, including permanent residency visas or special category visas.  Also, foreign investors must consult the Foreign Investment Review Board and await approval before making a purchase of property in Australia, so that the government can monitor the production of houses is not surpassing demand.

According to the news source, London was the number one location for buying property because the tenant base is one of the highest in the world (42 per cent of London’s residents will never buy property in that city), and a continual shortage in accommodation in London’s suburbia will always ensure property prices will remain strong, no matter what the economic climate is.

New York City ranked the second best location to buy property because of its low base interest rate (2 per cent) and its recognition as the world’s economic centre.  Also, Manhattan boasts 8.2 million residents per 790 square kilometres, meaning there would be an endless supply of tenants looking to rent property.

In related news, according to the Financial Mail, South Africa is experiencing a "brain drain" of skilled workers who are migrating to Australia and Canada creating a skills shortage in South Africa’s economy that has been coined its "Achilles heel".

The news provider has been told South African medical specialists and higher-end management comprise the biggest groups of skilled emigrants.  Since 2000, the number of South African emigrants has risen from 18 per cent to 40 per cent, leaving a massive gap in the South African workforce.

The Australian Government is also desperate to fill skills shortages and have opened its doors to skilled workers willing to move to Australia.  Figures released from the Australian High Commission in Pretoria showed that last year, approximately 4,000 South Africans moved to Australia, and 15,000 more visited the country on an Australian tourist visa.

Marketing Manager for Pentravel David Randall said this year flights from South Africa to Australia increased by 30 per cent.  He added that the increasing demand for South African immigration to Australia has resulted in Pentravel securing a special immigration fare with Qantas, Australia’s national airline. 

"It is not only the sales of one-way fares that have increased, but tickets for people making exploratory visits to Australia," said Randall.

The regional manager for an immigration agency in South Africa said most of his clients were Afrikaans seeking a better lifestyle in Australia, which provides higher wages, low crime rates, employment equity, and a stable government. 

Charles Luyckx, joint CEO of removal company Elliott International, said many of the migrants were taking advantage of the skills shortage in the mining industry in Australia.  Under the General Skilled Migration program, overseas workers can apply for skilled migration visas if they intend to work in an industry considered to have a skills shortage.  The Australian Government is currently campaigning for more foreign workers to apply for Australian mining jobs, particularly in South Australia and the Northern Territory so the country’s main source of GDP can support the continually expanding export economy.

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The Australian Visa Bureau is an independent consulting company specialising in helping people apply for an Australia visa.

Article by Jessica Bird, Australian Visa Bureau.