Page created by Kenneth Navarro

    1. Brisbane—The new world city
    page 2

    2. Living in Brisbane
    page 4

    3. Studying in Brisbane            To sustain an emerging global city, there
    page 7                             must be viable opportunities to attract          Quality of Living 2018
                                       globally scalable industry sectors and           Index of 233 global cities ranked on internal
    4. Housing in Brisbane                                                              stability, crime, law enforcement and
                                       create a highly desirable place to do
    page 10                                                                             relationships with other countries
                                       business. Brisbane is rapidly emerging as
    5. Renting in Brisbane             a leader in this space while enabling                      1. Vienna, Austria
    page 11                            affordable urban precincts to live, work
                                                                                                  2. Zürich, Switzerland
                                       and collaborate for higher education,
    6. Buying in Brisbane              research, start-ups and technological                   =3. Auckland, New Zealand
    page 12                            innovation. This guide focuses on living,
                                       studying and buying residential property                =3. Munich, Germany
    7. Buying as a First Home Buyer
                                       in Brisbane.                                            37. Brisbane, Australia
    page 13

    8. Buying as a Foreign Investor
    page 14
                                       Brisbane ranked in 22nd place of the
    9. Owning in Brisbane              World’s Most Liveable Cities in 2018
    page 19                            according to the Economist Intelligence
                                       Unit, as shown in Table 1. The index is          City Wealth Index
    10. Selling in Brisbane            based on 30 factors spread across five           The Knight Frank City Wealth Index 2018
    page 20                            areas: stability, infrastructure, education,     ranked Brisbane 49th of the cities that
                                       health care and environment.                     matter to the ultra-wealthy. Across the
    10 reasons to invest in Brisbane                                                    four categories, Brisbane performed best
    page 22                                                                             in the ‘investment’ category (54th) based
                                                                                        on the annual average private investment
                                       Most Liveable Cities 2018
                                       Index of 140 global cities based on Stability,   into property over 2016 and 2017. The
                                       Infrastructure, Education, Health Care           ‘future’ category also scored well (57th),
                                       & Environment
                                                                                        considering future economic performance
                                               1. Vienna, Austria                       (GDP) measured in constant prices.

                                               2. Melbourne, Australia

                                               3. Osaka, Japan
                                                                                        Knight Frank City Wealth Index
                                              22. Brisbane, Australia
                                                                                        2018, Brisbane
                                                                                        314 international cities ranked in each category


                                                                                         Wealth                                   76

                                       Quality of Living                                 Investment                               54

                                       Mercer placed Brisbane in equal 37th              Lifestyle                               141
                                       position, from 233 cities, in their Quality       Future                                   57
                                       of Life index as shown in Table 2. This
                                                                                         OVERALL                                  53
                                       index is ranked on internal stability,
                                       crime, effectiveness of law enforcement
                                       and relationships with other countries.

FOCUS ON BRISBANE Q2 2019                               RESEARCH

International                                 with unrivalled local, national and
                                              international labels and flagship stores.
Visitors                                                                                      FAST FACTS
Brisbane is the gateway to Queensland’s       Luxury brands are found along Queens
famous attractions with many local and        Plaza within the mall, Edward Street and        BRISBANE
international events held throughout the      Wintergarden, with its striking and
year.                                         colourful metallic webbed entrance.             •   Brisbane is the state capital of
                                                                                                  Queensland (Qld).
A drive from Brisbane to the Gold Coast       Fortitude Valley, on the edge of the CBD,
                                                                                              •   Australia’s third largest capital
is approximately one (1) hour by road.        provides a range of shops supporting
                                                                                                  city, with approximately 2.4
Many of Australia’s largest theme parks       local designers with luxury designers               million residents estimated
are located on the Gold Coast. The            home along James Street. Heritage                   living in the Greater Brisbane
destination is popular with families,         buildings contrast modern, edgy                     region in 2017.
catering to all age groups and particularly   buildings—much like the shopping
in school holiday times.                      experience.                                     •   Located on the East Coast with
                                                                                                  a geographic area of
                                                                                                  15,800 sqm.
Queensland is also home to one of the         The number of international visitors to
most renowned natural wonders of the          Queensland grew 2.3%, to total                  •   Hot and humid sub-tropical
world—the Great Barrier Reef. A flight        2.8 million, in the year ending December            summers (mean maximum 29°
from Brisbane to the serene Hamilton and      2018. The most number of international              C) and warm winters (mean
Hayman Islands arrives within two (2)         visitors came from China (502,000), New             average of 10°C).
hours of take-off, a perfect weekend          Zealand (483,000), United States
                                                                                              •   Most daily sunshine is 11 hours
away for locals and tourists alike.           (229,000), United Kingdom (227,000) and             in the month of January.
                                              Japan (208,000) as shown in Figure 1.
Brisbane accommodates a vast array of                                                         •   Brisbane operates under the
renowned restaurants, art galleries,          International visitors from Singapore,              Australian Eastern Standard
independent fashion houses and vibrant        Malaysia and Hong Kong grew by 11.2%                Time (AEST) time zone at all
                                                                                                  times of the year.
retail strips. Queen Street Mall, in the      in the year ending December 2018, while
heart of Brisbane CBD, offers a               Taiwan and France increased by 9.4%             •   From Brisbane, current
pedestrian-only shopping district, lined      and 9.3% respectively.                              average flying travel time is
                                                                                                  approximately eight (8) hours
                                                                                                  to Singapore and Kuala
                                                                                                  Lumpur, nine (9) hours to Hong
                                                                                                  Kong and Jakarta, 11 hours to
                                                                                                  Shanghai and 13 hours to
International Visitors to Queensland, by Country of Residence
Total number, year ending December 2018                                                       •   Brisbane is located in the
                                                                                                  ‘Sunshine State’ and home to
          China                                                                                   one of the natural wonders of
   New Zealand                                                                                    the world—the Great
            U.S                                                                                   Barrier Reef.
 Other Countries
   Other Europe
     Hong Kong
      Other Asia

                    0   100,000     200,000   300,000     400,000     500,000      600,000

Brisbane’s                                   Cantonese (0.9%), Spanish (0.7%) and
                                                                                       Hindi (0.6%).
                                          Profile                                      Education
                                          Population                                   Brisbane is a skilled city. A higher
                                          Population has been steadily rising in       proportion of people are educated at
                                          Brisbane with recent interstate migration    university level (22.9%) compared to the
                                          into the city. Over the year to 30 June      Australian average (22%). In Brisbane,
                                          2017, an increase in the estimated           18.7% of the local student population
    BRISBANE                              resident population was recorded at          were studying at university in the 2016
    ANNUAL EVENT                          2.0% to 2.4 million. This is ahead of the    Census, compared to the national
                                                                                       average of 16.1%.
    CALENDAR                              overall Australian population growth of
                                          1.6%. According to the Australian Bureau
    JANUARY                               of Statistics (ABS), the Brisbane
    •   Brisbane Chinese New Year         population is projected to grow annually     Work
        Festival                          by a minimum of 1.8%, to total 3.5 million
    •   Australia Day Brisbane                                                         The most common occupation of
                                          persons by 2036.
        Celebrations                                                                   Brisbane’s residents are in professional
                                                                                       services—at 22.9% compared to the
    •   Brisbane Comedy Festival          Age Distribution                             national 22.2% average. Clerical and
    •   BrisAsia Festival                                                              administrative workers (14.8%),
                                          Residents are primarily young to middle
    MARCH                                                                              technicians and trades workers (13.0%)
                                          aged—with 36% of Brisbane’s
    •   Brisbane Irish Festival                                                        and managers (11.8%) were the next
                                          population aged between 15 and 39
    •   World Science Festival                                                         most common occupations.
                                          years old compared to the national
    APRIL                                 average of 33.9% for this age group.
    •   Brisbane to Gladstone Yacht                                                    Of all the employed people in Brisbane,
        Race                                                                           4.4% worked in hospitals. Other major
    MAY                                   Multiculturalism                             industries of employment included
    •   Brisbane Street Art Festival      The Brisbane population is on par with       primary education (2.4%), cafés and
    •   Brisbane Winter Racing Carnival   the national average —with 32.2% of the      restaurants (2.3%), state government
    JUNE                                  city’s residents being born outside of       administration (2.3%) and supermarket
    • Brisbane Racing Carnival            Australia. The most prominent countries      and grocery stores (2.3%).
    •   Oxfam Trailwalker
                                          of birth include New Zealand (4.7%),
    JULY                                  England (4.0%), China (1.6%), India
    •   Queensland Music Festival         (1.6%) and South Africa (1.0%). In           Travel to Work
    AUGUST                                addition, approximately 31.9% of
                                                                                       In Brisbane at the time of the Census
    •   The EKKA Brisbane Show            Brisbane’s residents’ parents were born
    •   Brisbane Night Noodle Markets                                                  2016, the most common methods of
                                          overseas—slightly below the national
    •   Mercedes-Benz Fashion Week                                                     travel to work for employed people were
                                          average of 34.4%.
    SEPTEMBER                                                                          by car, as a driver (61.2%), car, as a
    •   Brisbane Festival                                                              passenger (5.0%) and bus (4.7%). Other
    •   Riverfire Finale                  Religion                                     common responses were worked at
    •   Brisbane Writers Festival                                                      home (4.6%) and train (3.6%).
                                          The Catholic religion was practiced by
    OCTOBER                               21.5% of Brisbane residents at the time
    •   Oktoberfest Brisbane                                                           On the day, 11.6% of employed people
                                          of the Census 2016, this was followed by
    •   Brisbane International Film                                                    used public transport (train, bus, ferry,
        Festival                          Anglican at 13.3%, then Uniting Church
                                                                                       tram/light rail) as at least one of their
                                          with 4.6%. No religion was the most
    NOVEMBER                                                                           methods of travel to work and 69% used
    •   Asia Pacific Screen Awards        common response in Brisbane with
                                                                                       car (either as driver or as passenger).
    •   Wonderland Festival               30.6% of the population.
    •   Asia Pacific Screen Awards        Language
    •   Christmas in the City                                                          Key Employment
        Celebrations                      Other than English, Mandarin (2.4%) is
    •   Brisbane New Year’s Eve           the most common language spoken in a         Hubs
        Fireworks                         Brisbane household. Other typical            The distribution of employment
                                          languages include Vietnamese (1.0%),         opportunities are wide across Brisbane,

FOCUS ON BRISBANE Q2 2019                               RESEARCH

although there are key concentrated          Hospital, Brisbane Private Hospital and        to companies with synergy to the airport
areas for office and industrial workers.     Brisbane Central State School.                 and/or logistics. This precinct also
                                             Accessible by: train, bus and car.             accommodates retail outlets.
                                                                                            Accessible by: train, bus and car.
Commercial                                   Toowong is concentrated around
Brisbane CBD is the largest office market    Toowong Village and Train Station and
in Brisbane. It extends around the           bound by Anzac Park, Mt Coot-tha               Industrial
Brisbane River from North Quay, cutting      Botanic Gardens, and Toowong Park and          Industrial areas are more spread across
across Alice Street, north along             the Brisbane River to the south.               the metropolitan area varying from
Boundary Street, south on Turbot Street      Accessible by: train, ferry, bus and car.      distribution centres to warehouses and
then south of Roma Street Station and                                                       industrial estates. Mostly they are
Transit Centre. Workers regularly access     Urban Renewal Precinct incorporates the        accessible via bus, truck and car.
the Brisbane City Botanic Gardens and        vibrant urban precincts of Fortitude
Roma Street Parkland at lunchtime.           Valley, New Farm, Teneriffe, Newstead          North: Brendale, Geebung.
Accessible by: train, ferry, bus, car and    and Bowen Hills with many vantage
footbridge from the Inner South.             points along the Brisbane River.               South East: Rochedale, Yatala, Ormeau,
                                             Accessible by: bus, car, train and/or ferry.   Stapylton.
Milton office accommodation is located
further around the Brisbane River and        Inner South sprawls south of the               South West and Outer South West:
based around Milton Train Station,           Brisbane River to include locations such       Richlands, Darra, Redbank, Ipswich.
extending through Petrie Terrace, skirting   as Southbank, South Brisbane,
Suncorp Stadium and Gregory Park.            West End, Woolloongabba, Kangaroo              South: Berrinba, Acacia Ridge,
Accessible by: train, ferry, bus and car.    Point, East Brisbane and Greenslopes.          Heathwood, Parkinson, Salisbury.
                                             Accessible by: bus, car, train, ferry and/or
Spring Hill adjoins the CBD to the south,    footbridge from CBD.                           Trade Coast: Lytton, Eagle Farm,
and Victoria Park Golf Course to the                                                        Pinkenba, Hendra, Hemmant,
north and includes St Andrews Memorial       Brisbane Airport Precinct is mostly home       Morningside, Murarrie, Airport, Port.

Major infrastructure network

FOCUS ON BRISBANE Q2 2019                               RESEARCH

Schools                                        Universities                                  single student visa regardless of their
                                                                                             chosen course of study and the Student
Schools in Australia generally comprise a      Most universities have a main campus          Guardian Visa—Subclass 590 where
mix of local and international students.       with several smaller campuses located         student guardians can apply for the new
The education system is broadly divided        across multiple states and territories; in    Student Guardian Visa.
into primary (aged 5-12) and secondary         CBD, metropolitan and regional areas.
(aged 13-18). There are two main types         This provides a wide range of options         All students and student guardians will
of public and private schools:                 when studying in Australia with many          generally be required to lodge their visa
                                               universities also setting up campuses         application online by creating an
                                               based in major international cities.          ImmiAccount.
Public Schools
Public schools are financially and
administratively operated by the State
Government and provide free education
to domestic students. First preference is      Students
normally given to those living within a        Reflecting the good reputation
particular catchment area from the             internationally, universities in Queensland      APPLICATION
school. Student visa holders must pay a        accommodate a large international                PROCESS FOR
fixed fee for each year of education,          student base. International student
dependent on the type of visa held.
                                               enrolments in Queensland increased
                                               9.1%, to 135,000, in 2018. Higher
Selective public schools are financially       Education had the most demand in
and administratively operated by the           student enrolments with 51,150, while
State Government. Selective public             international enrolments in Schools
                                                                                                TO SCHOOL
schools are regarded as more prestigious       represented 5,950 students.                      Expression of interest form: must
due to the academic selective nature.                                                           be completed prior to the school
Students must sit academic examination         Across all education sectors, the largest        year in order to guarantee a
and excel in order to be offered a             group of international students enrolled in      position for the student.
position from the respective school.           Queensland are from China (30,900),
                                               India (13,700), Brazil (12,480), South           Wait for offer: If all requirements
Additionally, these selective public           Korea (7,260) and Colombia (6,270).              are met, the school will offer a
schools do not usually limit their intake to                                                    formal placement in writing.
catchment areas. Due to their public           The application process for international
nature, student visa holders must pay a        students applying to Australian                  Apply for a Student Visa: With the
fee for each year of education.                universities is similar to local students.       formal school offer, students can
                                               The length of the application process can        then apply for the SSVF online.

Private Schools                                often be longer than local students, as
                                               more information is required before
Independent schools are financially and
administratively privately operated.                                                            TO UNIVERSITY
Independent schools therefore hold more                                                         Apply directly online: through the
                                               Most universities will require an IELTS
control over the quantity and quality of                                                        university website and provide all
                                               (International English Language Testing
teachers, classroom sizes, amenities and                                                        required evidence. In most
                                               System) examination conducted, an
co-curricular activities. Fees for                                                              instances this is prior education,
                                               internationally recognised education
independent schools are usually high, but                                                       financial and English language
                                               qualification and a portfolio of previous
can be considered to provide an                                                                 competence.
                                               work experience where applicable.
investment for superior education and
amenities to students.                                                                          Wait for Offer: If all requirements
                                               The Simplified Student Visa                      are met, the university will offer a
Religion-based schools hold faith at the       Framework (SSVF)                                 formal placement in writing.
core of their education—however they           The Simplified Student Visa Framework
continue to follow the state government        (SSVF) is designed to make the process           Apply for a Student Visa: With the
education curriculum. These religion-          of applying for a student visa in Australia      formal university offer, students
based schools are usually non-                 simpler to navigate via two subclasses:          can then apply for SSVF online.
government, and thus often have higher
fees than government subsidised                Student Visa—Subclass 500 where
schools.                                       international students can apply for a

Private Schools for International Students, Brisbane
Sample of private schools registered to accept international students, 2019

S ub ur b                       S chool                                       R elig ion                 Gend er   Year Lev els

As cot                          St Margaret's Anglican Girls School           Anglican                   Girls         pre-K-12
As hg r ov e                    Marist College                                Catholic                   Boys              5-12
B ald Hills                     St Paul's School                              Anglican                   Co-ed         pre-K-12
B oond all                      St Joseph's College (Boondall)                Catholic                   Boys              5-12
B r is b ane                    Catholic Education Archdiocese of Brisbane    Catholic                   Boys          pre-K-12
B r is b ane                    Brisbane Grammar School                       Non-denominational         Boys              5-12
B r is b ane                    All Hallows' School                           Catholic                   Girls             5-12
B r is b ane                    St Joseph's College (Gregory Terrace)         Catholic                   Boys              5-12
B r is b ane                    St James College                              Christian                  Co-ed             7-12
B r is b ane                    Brisbane Girls Grammar School                 Non-denominational         Girls             7-12
B r is b ane                    Anglican Church Grammar School                Anglican                   Boys              K-12
Cab ooltur e                    Grace Lutheran College (Caboolture)           Lutheran                   Co-ed             7-12
Cannon Hill                     Cannon Hill Anglican College                  Anglican                   Co-ed         pre-K-12
Cannon Hill                     St Oliver Plunkett School                     Catholic                   Co-ed          pre-K-6
Car ind ale                     Citipointe Christian College                  Christian                  Co-ed         pre-K-12
Clay field                      Clayfield College                             Presbyterian & Uniting     Girls         pre-K-12
Cor ind a                       St Aidan's Anglican Girls' School             Anglican                   Girls             K-12
D utton Par k                   St Ita's Primary School                       Catholic                   Co-ed          pre-K-6
D ak ab in                      Northpine Christian College                   Catholic                   Co-ed         pre-K-12
E nog g er a                    Hillbrook Anglican School                     Anglican                   Co-ed             7-12
E v er ton Par k                Northside Christian College                   Christian                  Co-ed         pre-K-12
For es t Lak e                  St John's Anglican College                    Anglican                   Co-ed         pre-K-12
Good na                         Westside Christian College                    Protestant Christian       Co-ed         pre-K-12
Hawthor ne                      Lourdes Hill College                          Catholic                   Girls             7-12
Hend r a                        Our Lady Help of Christians School            Catholic                   Co-ed          pre-K-6
I nd oor oop illy               St Peters Lutheran College                    Lutheran                   Co-ed         pre-K-12
Kang ar oo Point                St Joseph's Primary School                    Catholic                   Co-ed          pre-K-6
Kar awatha                      Islamic College of Brisbane                   Islamic                    Co-ed         pre-K-12
Kar r ab in                     West Moreton Anglican College                 Anglican                   Co-ed         pre-K-12
Kep er r a                      St Williams School                            Catholic                   Co-ed          pre-K-6
M ans field                     Brisbane Adventist College                    Christian                  Co-ed         pre-K-12
M itchelton                     Mt Maria College                              Catholic                   Co-ed             7-12
New Far m                       Holy Spirit School                            Catholic                   Co-ed          pre-K-6
Nund ah                         Mary MacKillop College                        Catholic                   Girls             7-12
Or mis ton                      Ormiston College                              Christian                  Co-ed         pre-K-12
Par k R id g e                  St Philomena School                           Catholic                   Co-ed         pre-K-12
R oched ale                     Redeemer Lutheran College                     Lutheran                   Co-ed         pre-K-12
R othwell                       Mueller College                               Community                  Co-ed         pre-K-12
R othwell                       Grace Lutheran College (Rothwell)             Lutheran                   Co-ed             7-12
S alis b ur y                   Brisbane Christian College                    Christian                  Co-ed         pre-K-12
S car b or oug h                Southern Cross Catholic College               Catholic                   Co-ed         pre-K-12
S held on                       Sheldon College                               Non-denominational         Co-ed         pre-K-12
S outh B r is b ane             St Laurence's College                         Catholic                   Boys              5-12
S outh B r is b ane             Somerville House                              Presbyterian & Methodist   Girls         pre-K-12
S unny b ank                    St Thomas More College                        Catholic                   Co-ed             7-12
The Gap                         St Peter Chanel Primary School                Catholic                   Co-ed          pre-K-6
Toowong                         Stuartholme School                            Catholic                   Girls             7-12
Toowong                         Brisbane Boys' College                        Presbyterian & Methodist   Boys          pre-K-12
Toowong                         St Ignatius' School                           Catholic                   Co-ed          pre-K-6
Up p er M t Gr av att           Clairvaux MacKillop College                   Catholic                   Co-ed             7-12
Welling ton Point               Redlands College                              Churches of Christ         Co-ed         pre-K-12
Wood end                        St Mary's College                             Catholic                   Girls             7-12
Wooloowin                       Holy Cross Primary School                     Non-denominational         Co-ed          pre-K-6
Z illmer e                      St Flannan's School                           Catholic                   Co-ed          pre-K-6

FOCUS ON BRISBANE Q2 2019                                                       RESEARCH

Universities, Queensland
Universities accepting international students

                                                                                                                                                                Annual Average
                                                      World Australian                                           Number of              International
                                                                          Adjusted                                                                               International
University Name                                      Ranking Ranking                                            International          Students % of
                                                                       Graduate Salary                                                                           Student Fees
                                                      2017    2017                                                Students             Total Students

University of Queensland                                 60                6              $49,752                   11,236                     23%                    $34,000
Queensland Uni. of Technology                           292               11              $47,548                    7,525                     16%                    $28,000
Griffith University                                     353                8              $48,531                   8,432                      19%                    $24,000
James Cook University                                   377               16              $53,404                    6,211                     29%                    $25,000
University of Southern Queensland                       805               22              $52,191                   4,548                      18%                    $21,000
Bond University                                         880               13              $49,204                   1,763                      35%                    $33,000
University of the Sunshine Coast                       1,535              24              $47,046                    1,921                     14%                    $21,000

World Ranking is calculated by averaging the ranking produced by QS World University Ranking, the Shanghai Academic Ranking of World Universities and Webometrics web publishing
Australian Ranking is calculated from the combined score for World Ranking (reputation), Graduate Satisfaction (ratings) and Adjusted Graduate Salary (results).
Adjusted Graduate Salary is a measure of how well students are doing in the job market some months after graduating based on graduate salaries, rates of unemployment and the proportion
of students who go onto further study.
Annual International Student Fees are an estimate only. It is highly recommended to engage directly with the Australian university for information on the cours e and fees applicable.
Further information is available at

The ‘Great Australian Dream’, a house
standing on a ‘quarter acre block’, is still                                              •   Oxley
                                               Distribution of Tenure, Brisbane
relatively affordable across Greater           % of private dwellings
                                                                                          •   Queen’s Wharf
Brisbane and within close proximity to                                                    •   Woolloongabba
the city and fringe. Although with our                                                    •   Yeronga
fast-paced lives, many are now choosing
low maintenance living and opting for                                                     To deliver new well-planned communities
apartments in complexes with high                                                         ‘growth by consolidation’ in ‘Shaping
amenity. This is becoming particularly                                                    SEQ’, has been identified in key locations
popular with downsizing households. This                                                  including:
reinforces the changing demand across                                                     • Knowledge and technology precincts:
the metropolitan area for public parklands                                                   CBD, Dutton Park/Buranda, Herston,
                                                                                             St Lucia, South Brisbane, Kelvin
and shared facilities.
                                                                                             Grove, Gardens Point and
                                                                                          • Brisbane north-east, south, south-west
Dwelling Types                                                                               and east rail transport corridor:
                                                                                             Toombul, Strathpine, Caboolture/
Standalone houses (also known as
                                                                                             Morayfield, Logan Central, Beenleigh,
landed) continue to be the most dominant                         OWNED WITH MORTGAGE         Meadowbrook, Toowong,
dwelling type in Brisbane, representing                          RENTED
                                                                                             Indooroopilly, Wynnum Central,
                                                                 OWNED OUTRIGHT
76% of all dwellings. This trends higher                         NOT STATED                  Cleveland.
                                                                                          • Northern, Eastern & South East
than the national average of 73% given
the greater volume of lower density                                                          Busway corridors: Chermside,
property.                                                                                    Carindale, Capalaba, Upper Mount
                                                                                             Gravatt, Springwood, Nathan/Coopers
Similarly, semi-detached, row or terrace
houses and townhouses, with a compact
                                                                                          Considering ‘growth by expansion’ has
backyard, comprised a 10% share;
trending lower than the national share of
                                               Growth precincts                           been identified in key locations including:
                                                                                          • Bahrs Scrub
12.7%. A little under 13% of dwellings         The Queensland government has
                                               identified key locations across Brisbane
                                                                                          • Caboolture West
are flats or apartments – compared to the
national average of 13.1%.                     suitable for rejuvenation with new homes   • Flinders
                                               and jobs.                                  • Greater Flagstone
                                                                                          • North Lakes/Mango Hill
Ownership                                      The employment growth action plan to       • Park Ridge
                                               deliver ‘Australia’s New World City’       • Southern Redland Bay
In Australia, most residential dwellings
                                               identifies key precincts:                  • Warner
are purchased as freehold property, that
                                               • Boggo Road/Princess Alexandra            • Yarrabilba
is, the land and building are owned              Hospital/The University of Queensland
outright, in perpetuity, under the Torrens     • Herston/Kelvin Grove
Title system.
                                               • Upper Mt Gravatt/Eight Mile Plains       Prime properties
                                               • City Reach
The same exists for Strata Title, although                                                Prime properties, considered the top 5%
                                               • City West
ownership allows individual ownership of                                                  of the residential market by value, are
part of a property (or ‘lot'), combined with
                                               • South Brisbane, including Kurilpa        mostly located close to, or dotted
shared ownership in the remainder, or          • Australia TradeCoast                     around, the Brisbane River. Well-
common property, through a legal entity        • Valley Gateway                           respected private schools located in
called the owners corporation (see further                                                these suburbs attract both local and
information on page 19).                       Brisbane sites identified for specific     international families alike.
                                               accelerated development as Priority
Across Brisbane, on the night of the           Development Areas (PDAs), with a focus     New Farm is considered the most
Census 2016, 26% of residential private        on economic growth currently include:      expensive suburb by value, according to
properties being lived in were owned           • Bowen Hills                              Australian Property Monitors (APM). This
outright, whilst 36% were owned with a         • Fitzgibbon                               is followed by Teneriffe, Chandler, Ascot,
mortgage. The remainder (35%) were             • Herston Quarter                          Hamilton, Bulimba, Fig Tree Pocket,
being rented from a landlord.                  • Northshore Hamilton                      Hawthorne, Pullenvale and Clayfield.

FOCUS ON BRISBANE Q2 2019                               RESEARCH

The process of renting (also known as         in a trust. At the termination of the
leasing or letting) a residential property    tenancy agreement, if the property is
can vary in each state, but generally the     vacated and left in a suitable condition,
main factors for a tenant to consider are     the bond will be repaid in full to the
outlined below.                               tenant.

Tenancy Agreement                             Utility & Service Charges
A tenancy agreement (property lease) is a     Responsibility for utility charges will be
contract where one party conveys              stipulated within the tenancy
property to another for a specified period    agreement—this is not always covered by
of time, in return for a regular payment.     the landlord. Although, the landlord must
When leasing out a property, the owner        pay for the actual installation and initial
receives an income, but there are             connection costs for electricity, gas, oil
maintenance costs and responsibilities        and water supply. If these need replacing,
for the landlord.                             then the landlord must replace them to
                                              the minimum efficiency standards.
Before signing a tenancy agreement, a
tenancy application must be submitted to
the real estate agency (property manager)
                                              Inspections & Repairs
with proof of identity, ability to meet       Throughout the tenancy, the property will
rental payments and good references.          be periodically inspected by the landlord
                                              or property manager. A minimum of
                                              seven (7) days notice will be given with
Rent                                          the purpose of these inspections being to
As stipulated in the tenancy agreement,       check the maintenance of the property.
the tenant agrees to regularly pay rent to
the landlord. Most times this is              Repairs to the property that are due to
conducted via a property manager and          the normal wear and tear of the property
rent can be paid weekly, fortnightly or       must be paid for by the landlord.
monthly. Any future increases will be         Repairs classified as ‘urgent’ must be
stated within the tenancy agreement as        completed as soon as possible, while
the landlord cannot increase the rent until   ‘non-urgent’ repairs must be taken care
the end of the fixed term, unless             of before the 14 days of notification.
otherwise stated.

Term                                          Generally, residential properties do not
The length of a tenancy agreement can         come furnished, although this becomes
vary, however the standard term is            more common for a rental property closer
usually six (6) or twelve (12) months for     to the CBD. This will be clarified in the
the initial agreement although alternate      tenancy agreement.
periods may be negotiable dependant on
the requirements of the landlord and/or
tenant. Once a tenancy agreement
                                              Terminating the Tenancy
expires, the tenant can request a new         A tenancy can be terminated at the
fixed term, or alternatively the tenant can   conclusion of the tenancy agreement.
stay in the premises at the same rent and     However, both landlord and tenant can
conditions until advised.                     request to end the tenancy for a variety of
                                              reasons. Certain conditions must be met
                                              before it can be terminated, including
Bond                                          days of notice, number of notices and
A bond is a lump sum payment paid             reason for termination.
upfront by the tenants as security before
moving into the property. This lump           For further information, contact
sum—usually four (4) weeks rent—is held       Residential Tenancies Authority.

The Process                                 inspection to guarantee the quality of the     should the market slow over this time.
                                            building and be aware of maintenance           It’s wise for this type of investment,
The process to purchase a residential
                                            required.                                      especially with smaller and unknown
property can vary widely but the most
                                                                                           developers, that contracts are reviewed
common steps are outlined below. For
                                            Negotiate by private treaty the highest        by legal representation and the ‘sunset
further information and clarity, consult
                                            price willing to be paid for the property      clause’ explained, which places a
with your legal representative.
                                            with the vendors (via the selling agent) or    deadline for the construction timeline.
                                            alternatively bid at public auction.           Should a development not proceed,
Finance Representation                                                                     deposits will be returned, but could be at
Before starting the journey to purchase a   Holding deposit is recommended for a           the expense of missed interest and
residential property, carry out due         private treaty until cooling off ends (say,    capital gains through other investments.
diligence of the subject property and       $1,000) until formal finance is approved;
surrounding area to ensure the price        at this time the full deposit (say, 10%) is    There can also be more tax depreciation
expectation can be achieved with the        paid. If bid was accepted at auction, the      available on new properties, meaning
allocated budget.                           full deposit is payable at this time (say,     maximising benefits and improving after-
                                            10%) with any cooling off period now           tax cash flow for investment properties.
The lending environment has become          void. The deposit is generally paid by
challenging in recent years, when seeking   cheque or electronic transfer (private
a loan from a financial institution. Many   treaty only).                                  General Costs
local banks will only lend if 20% of the                                                   When buying property in Australia, there
deposit has been saved and there is         Contracts are signed and exchanged by
                                                                                           are both federal and state taxes and a
good evidence the property loan can be      both parties and it’s time the solicitor (or
                                                                                           range of fees that are implemented.
repaid regularly with the property loan     conveyancer) finalises the formal
based on market value. Shop around as       paperwork with the lender. Loan
mortgages and deposits can vary             documents are signed.                          Transfer Duty
significantly between providers.                                                           Transfer duty (also known as Stamp
                                            Settlement occurs when the property
                                                                                           Duty) is levied by the state government
                                            officially changes ownership, following
                                                                                           on the purchase of property.
Legal Representation                        one final inspection on the day and the
Engaging a solicitor or conveyancer prior   locks are changed.
to purchasing the property is highly                                                       Legal Fees
recommended so they can review the                                                         Legal fees will vary between legal firms
                                            Buying Off-The-Plan
contract before signing, and then stay                                                     and may be dependent on property
engaged throughout the process until the    In most cases, buying off-the-plan (OTP)
                                                                                           value. Generally fees range from $1,000
property settles (when the property         is the commitment to buy a property
                                                                                           to $3,000 plus GST.
officially changes ownership).              that’s not yet built.

                                            An OTP property can be better priced           Land Transfer Fee
Buying Established Property                 than established stock as developers are       When a property changes ownership, a
Search for a property priced to match       keen to secure the project so lenders will     document known as a Land Transfer is
requirements for location, proximity to     provide funding so construction can            lodged and registered with the Office of
transport, work and education and the       commence. There is also the potential          State Revenue, and a fee is charged. It is
quality, size and age of the dwelling.      flexibility at this time to make design        this document that records the change of
Staying abreast of comparable sales will    changes to an apartment or house prior         ownership. The cost to register the title
assist in the negotiation process.          to turning sod.                                varies in each state of Australia. A
                                                                                           solicitor or conveyancer will perform this
Inspect the property at an open house or    In most cases a deposit, typically 10%, is     task on your behalf.
by private appointment. Request a copy      paid to the developer and the remaining
of the contract and have solicitor (or      is paid on settlement of the property,
conveyancer) read over the document.        allowing more time to save throughout          Mortgage Application Fee
                                            the construction period. Through this          A fee charged by the state government
Gain pre-approval for loan from lender      time, the market may push market values        for the registration of a mortgage. A
and confirm qualification from FIRB if      up, at an advantage to the buyer, at the       lender will perform this task on your
required. Arrange a pest and building       same time consideration must be made           behalf.

FOCUS ON BRISBANE Q2 2019                                   RESEARCH

Both the Australian and state                            home. The scheme allows Australians to
governments provide incentives for                       make voluntary contributions of up to            First Home Owner Grant Eligibility
Australian first home buyers.                            $15,000 in any one financial year, to a          Criteria
                                                         maximum $30,000 across all years. This           First Home Owners’ Grant

Incentives for                                           includes undeducted (non-concessional)
                                                         personal contributions, deducted                 Queensland; including Brisbane & Gold Coast

First Home Buyers                                        (concessional) personal contributions and
                                                         salary sacrifice contributions. These
                                                                                                          Threshold (the property must valued less than)

in Australia                                             contributions, which are taxed at 15%,           Buyer of new property                          $750,000

                                                         along with deemed earnings, can then be
First Home Super Scheme                                  withdrawn for a deposit if the eligibility

The Australian Government, from 1 July                   criteria is met.                                 Dwelling must be new, unless specified;
2017, has allowed individuals to make
                                                                                                          Persons must be a minimum age of 18 years;
voluntary concessional (before-tax) and                  Concessional contributions and earnings
non-concessional (after-tax) contributions               that are withdrawn will be taxed at              At least one applicant is a natural person and an
into superannuation funds to fast-track                  marginal rates less a 30% offset.                Australian permanent resident or citizen;
the time taken to purchase a new home                    Contributions made under this scheme
                                                                                                          The contract date must be on or after 1 July 2018;
under the First Home Super Scheme                        are not a new type of contribution. They
(FHSS). Since 1 July 2018, individuals                   are voluntary contributions made to your         You or your spouse must not have previously
can apply to release these voluntary                     superannuation fund. As a result, a              received a first home owner grant in any state or
                                                                                                          territory of Australia. If you received a grant that you
contributions, along with associated                     separate special account doesn't need to         later paid back, together with any penalty, you may
earnings, to assist in purchasing their first            be established nor does the fund need to         be able to reapply for the grant;
                                                         be notified.
                                                                                                          You or your spouse must not currently or previously
                                                                                                          owned property in Australia that you lived in, or
                                                         For further information, contact the
First Home Super Scheme Eligibility                      Australian Taxation Office.                      owned a home before 1 July 2000 whether you lived
Criteria, Australia                                                                                       in or not. However if you owned an interest in
First Home Super Scheme (FHSS)                                                                            residential property since this time, for investment
                                                                                                          purposes (with evidence), you may be eligible;
                                                         Incentives for First                             Must live in new home as principal place of
First home buyer – never owned property in Australia
– this includes an investment property, vacant land,
                                                         Home Buyers in                                   residence continuously for at least 6 months within
                                                                                                          the first 12 months of settlement.
commercial property, a lease of land in Australia or a
company title interest in land in Australia;
                                                         First Home Owners’ Grant
Must live in the premises you are buying, or intend
to as soon as practicable;                               Queensland First Home Owners’ Grant is
                                                                                                          home is valued at $500,000 or under, the
                                                         currently available. An eligibility criteria
Must intend to live in the property for at least                                                          first home concession amount will match
                                                         must be met before the grant is issued.
six months of the first 12 months you own it, after it                                                    the home concession rate resulting in no
is practical to move in;                                                                                  duty payable. First home vacant land
                                                                                                          concession only applies to vacant land
Superannuation contributions can be from any age         First Home Owner Grant Available
but persons must be a minimum age of 18 years to         First Home Owners’ Grant
                                                                                                          valued under $400,000.
request for funds to be released;
                                                         Queensland; including Brisbane & Gold Coast      Only one of these concessions can be
Not previously requested the Commissioner to issue
a FHSS release authority;
                                                                                                          claimed, with similar eligibility as the First
                                                                                                          Home Owners’ Grant, plus, one must not
Eligibility is assessed on an individual basis—so                                                         dispose of the property before moving in.
                                                         One-off                                $15,000
multiple persons can access their own FHSS
contributions to purchase the same property;
                                                                                                          Additionally for a home, one must live in
                                                                                                          on a daily basis within a year of
If any persons have previously owned a home, it will                                                      settlement and for land, only one home
not stop any other persons being eligible to apply;
                                                                                                          can be built, one must be certain there is
Don't sign contract to purchase or construct the
                                                         Stamp Duty Concessions                           not already an existing dwelling and live
home until money is released or there may be FHSS        The first home concession only applies           there daily within two years of settlement.
tax liability; this may take up to 25 days.              to a home valued under $550,000, where
                                                         purchasers may be eligible for a stamp           For further information, contact the
                                                         duty reduction on a sliding scale. If the        Office of State Revenue.

 regulations for
 foreign investors
 residential                 • Must apply and gain approval from
                               the FIRB prior to purchasing
 property in                   property in Australia.
                                                                      • A temporary resident is a person
 Brisbane                    • Applications are generally approved      who is residing in Australia and
                                                                        holds a temporary residency visa
                               if the property purchased adds to
                               the housing stock, including new         which permits them to stay in
                               dwellings that are yet to be             Australia for a continuous period of
                               occupied or sold, off-the-plan           more than 12 months (regardless of
                               properties under construction or yet     how long remains on the visa); or
                               to be built. This includes vacant        has submitted an application for
                               land for residential development         permanent residency and holds a
                               where ongoing construction begins        bridging visa which permits them to
                               within 24 months.                        stay in Australia until that application
                                                                        has been finalised.
                             • Non-permanent residents are
                               forbidden to purchase established      • Are required to notify FIRB prior to
                               dwellings as investment properties       purchasing property in Australia,
                               or as homes. Although there could        including an established dwelling, a
                               be an exception if the established       new dwelling that has been
                               dwelling is being redeveloped into       purchased directly from the
                               multiple dwellings, and as a result,     developer and has not been
                               there is an increase in the dwelling     previously occupied for more than
                               count. Over the development              12 months in total and vacant land
 For further information:      period, the house must remain            for residential development where
                               unoccupied.                              ongoing construction begins with 24
                                                                        months. Temporary residents are
                             • Foreign buyers can purchase an off       not permitted to buy established
 Foreign Investment Review     -the-plan dwelling, when another         dwellings as investment properties.
 Board [FIRB]                  buyer has failed to reach
                               settlement—reverting to its previous   • May acquire one established                   status as a new dwelling. An             dwelling only and it must be used as
                               apartment or house that has just         their main residence (home) in
                               been built, or is still under            Australia. Such proposals normally
                               construction and for which the title     meet with no foreign investment
 Department of Immigration     has never changed hands, is not          objections subject to conditions;
 and Border Protection         considered an established dwelling.      such as, that the temporary resident
                                                                        sells the property when it ceases to                                                          be their main residence.

                                   Non-Permanent                        Temporary Resident
                                      Resident                              (Temporary
                                  (Foreign Investor)                      Residency Visa)

FOCUS ON BRISBANE Q2 2019                               RESEARCH

The Australian Government welcomes foreign investment into Australia’s residential property market. The current rules around foreign
investment in residential property aim to direct investment into new housing, increasing the housing supply and support local
economic activity.

 • Acquiring second-hand dwellings for
    the purpose of providing housing for
    their Australian-based staff normally
    meet with no objections subject to
    the conditions set by FIRB.                                                              • Investment migrants under this
                                                • Investment migrants under this                scheme are required to invest at
 • The company must sell the property             scheme are required to invest at              least AUD$15 million into complying
    if it is expected to remain vacant for        least AUD$5 million into complying            investments in Australia for a
    six months or more. In remote and             investments in Australia for a                minimum of 12 months before
    rural locations foreign companies             minimum of four years before                  becoming eligible for permanent
    may rent out dwellings acquired               becoming eligible for permanent               residency; a more expeditious
    under this category only where they           residency.                                    pathway than the SIV.
    are unable to sell the property.
                                                • The SIV scheme is intended to              • The PIV scheme is aimed at
 • Whether a company is eligible, and             target the migration of high net-             attracting applicants with business
    the number of properties it may               worth individuals to Australia with           and entrepreneurial skills and capital
    acquire under this category, will             the longer-term aim of transferring           to enhance investment into
    depend upon the scope of the                  wealth of international businesses            innovative Australian businesses
    foreign company's operations and              and individuals to benefit Australian         and the commercialisation of
    assets in Australia.                          businesses and the broader                    Australian ideas, research and
                                                  economy.                                      development.
 • Foreign companies would not be
    eligible under this category where          • The SIV scheme was introduced on           • The PIV scheme was introduced on
    the property would represent a                24 November 2012 and is operated              1 July 2015 and is operated by the
    significant proportion of its                 by the Department of Immigration              Department of Immigration and
    Australian assets.                            and Border Protection.                        Border Protection.

                                                Significant Investor Visa (SIV)                Premium Investor Visa (PIV)

      Foreign Company                                                   Investment Migrants
       with Australian                                              (High Net Worth Individuals)

Additional Costs for                          Fees payable by Foreign Investors,
     Foreign Buyers                                Residential property
                                                   Based on Property Value, AUD
     All foreign persons — that is, temporary
     residents and non-residents — can apply                    $0 - $1,000,000     $5,600
     to purchase vacant residential land for
     development and newly constructed                  $1,000,001 - $1,999,999     $11,300

     dwellings in Australia.
                                                        $2,000,000 - $2,999,999     $22,700

     Non-resident foreign persons are                   $3,000,000 - $3,999,999     $34,000
     generally prohibited from purchasing
                                                        $4,000,000 - $4,999,999     $45,400
     established dwellings in Australia.
     However, temporary residents can apply             $5,000,000 - $5,999,999     $56,700
     to purchase one established dwelling to
     use as their residence while they live in          $6,000,000 - $6,999,999     $68,100

     Australia, although on the condition the
                                                        $7,000,000 - $7,999,999     $79,500
     property is sold when it ceases to be
     their principal place of residence.                $8,000,000 - $8,999,999     $90,900

                                                        $9,000,000 - $9,999,999     $102,300
     Once a property has been identified to
     purchase, an application must be made                  $10,000,000 or more     tiered per million
     to the Australian Foreign Investment
     Review Board (FIRB).

     It is highly recommended that an
     application is submitted prior to the
     advance of any transaction—to ensure
     complete legality of the purchase.            The FIRB provides an interactive fee
     Additionally, approval from FIRB is           estimator.
     property-specific—one application per
                                                   Duty Surcharge
     When the application is submitted, the        The Queensland state government
     government investigates to ensure that        imposes a duty surcharge for foreign
     the purchase of the property will be in the   investors, payable in addition to general
     country’s best interest.                      state-based transfer duties; known as the
                                                   Additional Foreign Acquirer Duty.
     A decision on the application is made
     within 30 days—unless complications or        Since 1 July 2018, foreign purchasers are
     alterations occur, in which it may take up    required to pay an additional 7% of the
     to 90 days.                                   sale price.

                                                   Other states with foreign investor duties
     Foreign Investor Application                  include New South Wales (8%) as of 1
                                                   July 2017, Victoria (7%) as of 1 July 2016
                                                   and Western Australia (7%) as of 1
     All foreign investors must pay a fee          January 2019.
     before their foreign investment
     application will be processed.

     Foreign investors are required to pay         Duties payable by Foreign Investors,
     $5,600 to purchase a new property if          Residential property
     valued under $1 million, with additional      Based on Property Value, AUD, Payable in
                                                   addition to general state-based transfer duties
     fees payable per million in the value of
     the property.                                 Queensland; including Brisbane

                                                   Duty Surcharge on Purchase Price;
     This fee does not provide any assurance                                                   7%
                                                   from 1 July 2018
     of securing the property and strict
     penalties are applied for those who
     breach the rules.

FOCUS ON BRISBANE Q2 2019                     RESEARCH

Estimated Property Purchase Costs, Brisbane
All costs represented in AUD, As at 1 April 2019

Purchase Price                                      350,000     500,000     750,000    1,000,000   1,250,000   1,500,000

Transfer Duty                                          3,500       8,750      19,600      30,850      45,230      59,600

Land Transfer Fee                                        790       1,310       2,190       3,060       3,940       4,810

Legal Fee (includes GST payable)                       1,500       1,500       1,500       2,000       2,000       2,000

Mortgage Application Fee                                 190         190         190         190         190         190

General: Estimated Total Costs                         5,980      11,750      23,480      36,100      51,360      66,600

Foreign Investor Application Fee*                      5,600       5,600       5,600       5,600      11,300      11,300

Foreign Investor Duty Surcharge @7%                   24,500      35,000      52,500      70,000      87,500     105,000

Foreign Investor: Estimated Total Costs               36,080      52,350      81,580     111,700     150,160     182,900

Estimated Property Purchase Costs, Brisbane
All costs represented in AUD, As at 1 April 2019

Purchase Price                                     1,750,000   2,000,000   2,250,000   2,500,000   5,000,000   7,500,000

Transfer Duty                                         73,980      88,350     102,730     117,100     260,850     404,600

Land Transfer Fee                                      5,690       6,560       7,440       8,310      17,060      25,810

Legal Fee (includes GST payable)                       3,000       3,000       3,000       3,000       3,000       3,000

Mortgage Application Fee                                 190         190         190         190         190         190

General: Estimated Total Costs                        82,860      98,100     113,360     128,600     281,100     433,600

Foreign Investor Application Fee*                     11,300      22,700      22,700      22,700      56,700      79,500

Foreign Investor Duty Surcharge @7%                  122,500     140,000     157,500     175,000     350,000     525,000

Foreign Investor: Estimated Total Costs              216,660     260,800     293,560     326,300     687,800    1,038,100

FOCUS ON BRISBANE Q2 2019                             RESEARCH

                                                                                            WHAT IS THE
In Brisbane, costs and taxes associated
with the ownership of a property can vary
                                              Additional Costs as                           ROLE OF AN
dependent on the services the building        a Landlord                                    OWNERS
provides.                                                                                   CORPORATION?
                                              Property Management Fees
General Costs                                 Letting Fees are usually equivalent to two    The rights and responsibilities of
                                              (2) weeks rent paid to the agent as a fee     both the owners corporation and
Land Tax                                      for finding and securing a tenant.            its members is different in each
Land tax is an annual state tax that is       Management Fees cover any costs               state but generally comprise:
calculated based on the aggregated            associated with managing the property
taxable value of all land owned (or jointly   and range from 7% to 8.5% plus GST.           •   Maintain and repair the common
owned) by an individual. Land Tax is not                                                        property of the strata scheme;
applied if the property is your principal     Utility and Service Charges                   •   Manage the finances of the
                                              The owner must pay for the use of                 strata scheme;
                                              utilities (electricity, gas, oil and water
Council Rates                                 supply). Although if the owner leases the     •   Maintain required insurances
                                                                                                including public liability and
This varies across states and local           property to a tenant, some of these can
                                                                                                building insurance where
government areas. This is the tax the         be passed on but this must be stipulated          applicable;
council charges owners for the services       within the tenancy agreement. However,
to the property—generally paid quarterly      the owner must pay for the actual             •   Keep records of all details of
                                              installation and initial connection costs.        notices given under the relevant
or annually.
                                                                                                state strata management
Income Tax                                    Landlord Insurance
                                              Landlord insurance is designed
                                                                                            •   A strata register must be
Income tax is payable on gross rental                                                           established and maintained,
income, less any allowable deductions         specifically to cover rental properties.          detailing the owner’s name or
incurred in earning that income. As there     Depending on the insurance provider, it           agent’s name and address for
                                              protects the home from damage, theft,             each lot within the strata
are a number of potential allowable
                                              severe weather or rent default in some            scheme;
deductions, it is recommended that an
                                              cases. To decrease risk, landlord
Australian Tax advisor is consulted.
                                              insurance is highly recommended.
                                                                                            •   Administration of any by-laws for
                                                                                                the strata scheme;
Owners Corporation                                                                          •   To provide a grievance register.
If the purchased property is Strata Titled    Additional Costs for
(a building with common areas and
facilities for the use of all occupants of    Foreign Owners
the building), an owners corporation will
be established for the building.              Foreign-Owned Vacant
                                              Residential Property Levy
A regular fee must be paid to the Owners      The Australian government charges an
Corporation to maintain these common          annual levy for foreign-owned vacant
areas. This can include elevators, foyers,    residential property (ghost tax). The levy
swimming pools and spa, gymnasiums,           is equivalent to the FIRB application fee
plants and foliage, lighting, staircases,     imposed at the time the property was
fences, visitor car parks and security.       purchased if they fail to occupy or lease
                                              for at least six (6) months of the year.
A group of elected people manage the
operations and decision-making of the         Absentee Land Tax
common area of the property.                  Surcharge
In most states, the owners corporation        The Queensland state government has
comprises of an executive committee           imposed a 1.5% absentee land tax
(generally individual owners of the           surcharge for foreign investors. This is
apartments) who make decisions on the         payable in addition to general land tax
behalf of their owners.                       and is based on the taxable value.

There are costs and taxes to consider
                                           when selling residential property in          Additional Costs for
                                                                                         Foreign Owners
                                           General Costs                                 Capital Gains Tax Clearance
                                           Legal Fees                                    Certificate
                                                                                         Foreign and temporary tax residents are
                                           Legal fees include, but are not limited to,
                                                                                         no longer entitled to access the CGT
                                           the costs for preparing a contract for
                                                                                         main residence exemption from 7.30PM
                                           sale. The solicitor or conveyancer fee
                                                                                         (AEST) on 9 May 2017.
                                           could be dependent on value of property,
                                           and may vary between state and territory
                                                                                         Although, existing properties held prior to
                                           as well as the particular solicitor chosen.
                                                                                         this date will be grandfathered until 30
                                           The cost may range between $2,000 and
                                                                                         June 2019.
                                           $4,000, plus GST.

                                                                                         A CGT withholding rate for foreign
                                           Real Estate Agent Fees                        investors is applicable for all contracts
                                           An agent fee is the commission paid by        with a market value over $750,000 when
                                           the owner, to the agent, for selling the      signed on or after the 1st July 2017.
                                           property—either tiered rate or a fixed
                                           rate. Do ensure you understand the            This requires 12.5% of the purchase
                                           breakdown of the fee structure as             price to be withheld by the purchaser and
                                           commissions will vary between states,         remitted to the Australian Taxation Office
                                           and price point. Fees often range             (ATO) unless a clearance certificate has
                                           between 2% and 3% of the value of the         been provided by the vendor. The money
                                           property sold.                                withheld is a portion (not in addition to)
                                                                                         from the agreed sale price.

                                           Marketing Costs                               If a purchase price negotiated between a
                                           When an agent is selected to sell the         purchaser and vendor is on an ‘arm’s
                                           property, the fee breakdown will often        length basis’, then the purchase price
     DOWNSIZER                             stipulate the budget associated to the        may be used as a proxy for market value.
     INCENTIVE                             marketing and advertising of the
                                           property. Additionally, there may be a        The ATO can only grant a clearance
     Downsizers (aged 65+ years)           period allocated to marketing with            certificate to a vendor who is considered
     can make a non-concessional
                                           multiple open house inspections over          to be an Australian resident.
     (after-tax) contribution into their
     Superannuation account of up          several weeks. Budgets for marketing,
     to $300,000 from the sale of          media, as well as length of advertising       Do note a residency status for tax
     their family home.                    should all be discussed with the agent to     purposes is not necessarily the same as
                                           ensure maximum advertising potential.         that for immigration purposes; or for the
     Introduced from 1 July 2018,                                                        FIRB. It is recommended to seek
     the legislation states the
                                                                                         professional legal advice to further clarify
     property sold must be the             Capital Gains Tax                             the residency definition for this
     person’s home (main residence
                                           Capital gains tax (CGT) is a federal tax      legislation.
     and be eligible for the main
     residence exemption for capital       levied on the gain or loss upon the sale of
     gains tax) and held for at least      an investment property.                       The foreign resident CGT regime for
     the past 10 years.                                                                  withholding tax applies to taxable
                                           The tax is implemented on the difference      Australian property including vacant land,
     This will increase their tax-free     between the cost of acquiring the             buildings, residential and commercial
     fund limits. Couples will be able     property, and the value when sold. The
     to contribute up to $300,000                                                        property, leaseholds and strata title
                                           difference is then added to the income        schemes.
     each, giving a total contribution
     per couple of up to $600,000.         tax for the individual or company for that
                                           financial year, and taxed accordingly with    For further information, contact the
                                           those rates.                                  Australian Taxation Office.

FOCUS ON BRISBANE Q2 2019                                    RESEARCH

In recent years, the federal and state governments have introduced foreign investor fees, tax surcharges and levies. Below is a
summary of the current process for foreign buyers when purchasing, owning and selling Australian residential property.

The Process for Foreign Buyers when Purchasing, Owning and Selling Residential Property, Brisbane
As at 1 April 2019


                                                                 Check if the                              Applies to all
                                            Must be made        Developer has a                             Australian
                      APPLY TO FIRB                                                  one application
                                           prior to purchase      Exemption                                 residential
                                                                                      per property
                                                                  Certificate                               properties

                        + PAY FIRB                                    Above                              If within several
                     APPLICATION FEE            Below           = $11,300 + fees     Contact ATO if       categories the
                      based on AU$1M           = $5,600           are tiered per      over $10M             highest fee
                           value                                      million                                 applies

                                              Decision is       Must be in the      Approval or fee
                        AWAIT FIRB                                                                        Strict penalties
                                            normally made       best interest of    does not secure
                        APPROVAL                                                                         occur if in breach
                                            within 30 days         Australia             sale

                      TRANSFER DUTY
                                            (incl. Brisbane &
                                               Gold Coast)
                       on market value
                                                   = 7%


                       AUSTRALIA >                                                                         Equivalent to
                                                                                    not genuinely on
                         VACANT                                   Applicable if                           application fee
                                              Annual levy                           rental market for
                       RESIDENTIAL                                 vacant or                              paid at time of
                                                                                    6 months of year
                        PROPERTY                                                                            purchase

                                                                   Imposed if
                                            Absentee Owner
                           Qld >                                 taxable land is
                                                = 1.5%
                                                                   $350,000 +


                                                                                      A clearance           Clearance
                     CAPITAL GAINS TAX       12.5% of the       Applicable to all
                                                                                     certificate must       certificates
                       (CGT) on market      purchase price       contracts over
                                                                                     be provided by       granted to Aus.
                            value              withheld            $750,000
                                                                                       the vendor            residents

You can also read