Investing on Gold Coast

Purchase of Queensland residential properties by FOREIGNERS has risen to almost $450 million for the 2005/2006 financial year. This is a significant increase over the previous three years and is close to the peak of $500 million in 1997/98.

The Gold Coast was once again the favoured local authority for foreign buyers in Queensland, receiving $197.5 million, or 44 per cent of total spending for the State.

Of the $197.5 million spent on the Gold Coast in 432 transactions, the Japanese have emerged as the biggest spenders for the 2005/06 year with a total of $30.7 million. This is the highest level of spending by Japanese on the Gold Coast for several years. 

(From REIQ Journal February Edition - Industry Research)

Foreign Buyer and F.I.R.B approval

When foreign buyer buys a residential property in Australia, they must go through to the F.I.R.B (Foreign Investment Review Board) to approve for the purchase of the properties. For example, the property that foreigner can purchase will be 50% of the new development site (50% of the total of high rises apartments or brand new houses in the new development sites), a block of land with the condition of the commencement of the building construction within 12 months. (This information is general and please check current FIRB approval status by your solicitor). 

However if the property is under ITR (Integrated Tourist Resort) status, the foreign buyer can buy or sell any of the properties within the resort. On the Gold Coast, there are only 3 resorts (Royal Pines Resort, Hope Island Resort and Sanctuary Cove) are under ITR status. If you are an Australian resident and the benefit to own any residential property in those resorts is, you will have a broad market to sell your property to the foreign investor as well as local purchaser.

Buying Boom will hit Next Year

It’s the return of the gold rush.

Gold Coast property prospectors are again set to strike it rich as the latest Midwood report shows a buying boom will hit next year.  Author and analyst Bill Morris said property prices could rise as much as 40 per cent, fuelled by population growth and a thriving state economy.  The boom would not match the record growth of 2002/03 when property prices rose more than 100 per cent – the biggest increase since the 1851 gold rush.
 Gold Coast prices are increasing at about 5 to 6 per cent per annum, and looking to peak in about 2008/09.

The Midwood report for the February 2007, quarter shows that Queensland’s economy is outpacing the country, with the state’s gross domestic product increasing at 4.75 per cent compared to Australia’s 2.6 per cent.

Population growth is also increasing steadily, at  a healthy 2 per cent for the state, with the Coast counting 530,200 residents in February 2007.