Living in a land down under

The appeal of a second home in the glorious sunshine and friendly atmosphere of Australia is one that many British retirees can't resist. Jeremy Gates reports.

The Sydney Olympics, its glorious Millenium night fireworks and the Rugby World Cup won dramatically by England in 2003, showed Australia in an impressive light to TV viewers around the world - but they only partly explain why this huge country is becoming a magnet to British property buyers.

With a total population of less than 20 million dotted around a vast area, which can only be fully appreciated by those who actually go there, Australia offers a marvellous sense of space, and a freedom to do your own thing you're unlikely to feel on a bad morning on the M25.

It has many other qualities besides, which Britons increasingly yearn for: an outdoor way of life which seems to make people more outward-going and friendly; an agreeable climate avoiding cold and dark weather throughout the year; and a genuinely open society in which people still believe, from an early age, that they will achieve their dreams by dint of their own hard work.

Many of the Brits who settle Down Under say the place has a 'freshness' and vitality you simply can't find back in the UK. Food is invariably superb in Australia, due in part to a range of multicultural influences which might surprise some who say the country's immigration policies are too tight. It may also be a factor for some British buyers in Australia that, in some areas, many Britons are already there in huge numbers to welcome them. And wherever they settle, they won't face the language barrier encounted in other warm retirement locations. According to figures included in Victoria's Skilled Migration Strategy 2004-7, the largest group of migrants in Melbourne is from England (127,716) followed by Italy (80,740); Vietnam (55,849); Greece (55,735) and New Zealand (45,749).

Getting into Australia as a permanent resident isn't easy - you need a relative who can sponsor you, or a skill which is deemed valuable. But many property buyers won't live there full-time anyway, at least not to start with.

Sat Khakh is sales manager for Raptis, a leading Golf Coast developer represented at a recent Australian property exhibition in London. Raptis specialises in the south-east corner of Queensland, around main centres including Brisbane, Southport and Broadbeach. Its range of developments starts with good-sized two-bedroom, two-bathroom flats sharing communal facilities, including pool and gym, for around £220,000. "Britons are the second biggest investor market behind the Japanese", he says of Australia. "I believe UK demand is driven by simlarities between the legal systems of the two countries, by the number of British people with relatives Down Under, and by a desire of many Britons to retire there to enjoy both the lifestyle and the weather."

Queensland has become something of a focus for investors both from inside and outside Australia, says Sat Khakh. "On average, property prices have been rising there by about 12-14% per annum. Australia enjoys a very selfsufficient economy, very strong on natural resources and very low on unemployment. The fundamentals are in place for a strong and prosperous economy for years to come."

What are the main areas for British buyers? Victoria, with Melbourne at its heart, wants more professionals, tradespeople, business owners and investors from overseas- to boost a total population of 5m people living in an area equivalent to the whole of the UK. However Sat Khakh says key areas for British buyers tend to be the Gold Coast of Queensland, and the Sunshine Coast, further north of Brisbane and in the area surrounding the town of Noosa. Perth in Western Australia has strong support among the growing British contingent, but is unlikely ever to become as popular as the Eastern seaboard.

In Melbourne, property auctions are all the rage - and one of them has just sold the former home of Shane Warne, finest spin bowler in the world and history, in the beachfront suburb of Brighton for £1.6m. Other Britons, tempted by a generous exchange rate, chase one-bedroom flats from around £125,000 and there's a good choice of classy two-bedroom apartments in good addresses around £200,000.

Although English lenders haven't bothered to build a loan book in Oz, investor buyers with adequate resources should be able to fix loans through Australian banks up to 70% of valuation. At Clydesdale Bank (0800 419000), buyers are advised how to get in touch with a branch of National Australia Bank. From international banks, it should be possible to fix loans up to 80% of value, repayable over a maximum period of 30 years.

Says Sat Khakh: "Young and middle-aged buyers tend to either have Australians as partners, or a family link out there. Older investors usually think about retiring there, and they expect to live there full-time in five or ten years. Some people buy a standard flat to get a foothold on the property market, then buy a house and land package in a few years time when they decide to live in Australia full-time."

Running costs of a home tend to be lower than in Britian - not least because council taxes are lower, and residents are likely to save a fortune on heating bills. Living costs, generally, are lower in Australia than in the UK, and it may also be cheaper than Britain when you eventually come to sell up: if you have owned for longer than 12 months, the first 50% of any capital gain is tax free, while the remainder is taxed at 40%.

Is it better to buy new rather than secondhand? The bureaucracy of property purchase means it is usually easier to buy brand new property. On new schemes, developers usually gain prior approval for 50% of schemes to be sold to foreign investors, while purchases of older properties usually has to be cleared individually through the Foreign Investment Review Board (FIRB).

Says Rajan Arulanantham, assistant manager at Melbourne Business Centre: "Anyone wishing to travel to Australia will require a visa, and the conditions of the visa will dictate the length of time the holder is able to stay. Details of various visa options are available on our website at www.immi.gov.au," he adds.

"The ownership of property by foreign nationals would generally require FIRB approval. Further information on approval requirements can be seen on www.firb.gov.au -- ownership of property in Australia does not entitle foreign nationals to a visa".

INFORMATION
Best selection of properties for sale or rent in Melbourne and Victoria can be found on ww.domain.com.au and www.realestate.com.au

Real Estate Agents Institute Victoria - www.reiv.com.au provides good overview of market in Melbourne.

Leading agents in the city include:
Nelson Alexander www.nelsonalexander.com
Biggin & Scott www.bigginscott.com.au
Hocking Stuart www.hockingstuart.com.au
Brad Teal www.bradteal.com.au

Details of Victoria's Skilled Migration Programme available on www.LiveInVictoria.vic.gov.au SAI Investment Properties, which was involved in London's Invest in Australia property exhibition is at www.saiinvest.co.uk or call 0870 432 3464.

Details of Raptis, Australia's largest property developing company, can be found on www.raptisgroup.com.au