Bob Geldof Warns Investors About Australian Property

A new report has found that Brits
invested more money in the Australian property market in 2010/11 than any other
nationality of overseas buyers. 
The state of Victoria was the most popular location for foreign
investors, with Brits spending almost £3 billion on property in Australia
during this period.

However, Live Aid organiser and
Boomtown Rats singer Bob Geldof has warned investors that the Australian
property market could easily follow the troubled Irish property market.  Keep reading to learn more about
Australia’s popularity with British buyers and Geldof’s recent comments.

Brits are the largest property investors in Australia

The latest annual report from
Australia’s Foreign Investment Review Board (FIRB) found that investors from
the UK spent AUD4.61 billion (£2.94 billion) on property in Australia during
2010-11.  Chinese buyers were the
second most active with buyers from the USA in third place.

The FIRB publication report also that revealed the largest proportion of
foreign investment in property was spent in the state of Victoria, which
attracted AU$11.23 billion in funds. 
New South Wales (NSW) was second on the list, with AU$7.61 billion spent
there.

Australia has long been one of
the most popular locations for Brits to buy property.  The popularity of TV shows such as Wanted Down Under, the climate and the laid back lifestyle continue
to draw Brits to Australia in their thousands.”

Geldof urges caution

While the popularity of
Australian property may be high, a cautious note has been sounded from an
unlikely source.

The Herald Sun reports that legendary rock star Bob Geldof has ‘warned
a group of Melbourne businesswomen the property market bubble could easily
burst as it had in Ireland.’

Speaking at a Business Chicks
breakfast, Geldof also criticised the Australian economy for being too reliant
on the Chinese economy and on mining. 
The Boomtown Rats star also urged people to oppose Australian government
plans to reduce foreign aid, saying: “Australia, coining it in at the moment…
is thinking of knocking the poorest on the head to subsidise other things.”

The property market in Ireland
has been one of the world’s worst hit in recent years with prices falling by up
to 60 per cent in some areas.