Australian Property Market

Market is cooling, historical trend likely to continue

Capital Growth







Rental Yields

Taxes are High

• Rental income: Depending on the owner’s net taxable income, the tax rates range from 29% to 45%. An owner may also be required to pay a land tax annually, depending on which state his property is located and on what type his property is.

• Capital Gains: Individuals are subject to a 50% reduction of the taxable gain if the asset is held for at least 12 months. Capital gains follow the individual income tax rates at rates from 29% to 45%.


Buying costs are moderate in Australia
Roundtrip transactions costs are 7% to 12% of the property value. Stamp duty on property transfers ranges from 1.5% – 6.75%, and is paid by the buyer.

Foreign Investment


Tenancy laws are neutral in Australia
Australia ’s landlord and tenant laws are generally neutral. Both parties’ rights are well-protected by each states’ Residential Tenancy Act.
• Rents: Rents can be freely negotiated, but increases are subject to review by a Tribunal provided the tenant makes an application. The rent cannot be increased before the end of the first year of tenancy in any state.
• Tenant Eviction: A landlord can terminate a tenancy by giving notice in the approved form, or by using the tribunal. The legal system is highly efficient: it takes an average of 44 days to evict a tenant.


Capital City Property Markets

There is more

Also Read:
• ANZ Australian Property Outlook - Jan 2008