UK buyers Head To Australia & New Zealand Property

There are many great reasons to consider buying property in Australia or New Zealand.  Now, a leading property expert has outlined some of the most common reasons why Brits buy in those countries, as figures show that increasing numbers of foreign buyers are heading Down Under.

Great reasons to buy in New Zealand and Australia

The FT Money journalist Tanya Powley, recently outlined reasons why Brits are looking to buy in Australia.  Firstly, there is no language barrier as both are English speaking countries.  There is no need for specialist multilingual lawyers or interpreters when you head to the country to search for homes to buy.

Secondly, the cold weather in the UK early in 2011 meant that people looking to buy turn to the hottest climates at that time of year – the Australian and New Zealand summer.

However, Ms Powley did warn UK buyers to keep an eye on the currency markets. She said: “It is worth pointing out again that [in] places like Australia and New Zealand the dollar over there is very strong against UK sterling.”

Increase numbers of foreigners buying in Australia

According to data compiled by the Real Estate Buyers Association of Australia, in 2009 foreigners purchased 3,639 homes and 988 plots of land worth a total of £14.5 billion.

Byron Rose, president of the Real Estate Buyers Association of Australia, commented: “We see a lot of interest from Singapore, Hong Kong, Tokyo and the UK. They know the market is depressed and as they are making huge capital gains many are reinvesting into the market.”

However, buyers should take into account that interest rates have risen in Australia over recent months.  The Reserve rate now stands at 4.75 per cent, up from its low point of 3 per cent in early 2009.  Mortgage rates being offered by leading banks are around 7 per cent.