Investments
APEC Member Economies now account for 41% of the total stock of all foreign direct investment (FDI) in Australia – demonstrating the importance of the region to Australia’s economic prosperity. The stock of FDI in Australia from APEC economies jumped by 7.3% during 2006 to reach $130 billion.
The 21 APEC (Asia-Pacific Economic Countries) members, referred to as ‘Member Economies’, are Australia; Brunei Darussalam; Canada; Chile; People’s Republic of China; Hong Kong, China; Indonesia; Japan; Republic of Korea; Malaysia; Mexico; New Zealand; Papua New Guinea; Peru; Republic of the Philippines; The Russian Federation; Singapore; Chinese Taipei; Thailand; United States and Viet Nam.
The United States is a major source of investment, with a 57% share of the stock of FDI in Australia from APEC economies in 2006, followed by Japan (18%), New Zealand (6%) and China and Hong Kong (4%). FDI stock from China and Hong Kong in Australia has increased dramatically, up 196% over the past 5 years which shows the ever strengthening links between Australia and the rest of the region.
Invest Australia CEO, Barry Jones said that a key driver of foreign investment has been Australia’s economic resilience with 16 years of strong and uninterrupted growth, as well as the country’s location in the fast growing Asia-Pacific region.
“Asia’s economies are forecast to account for 45% of world GDP by 2015 so Australia is very well positioned. Combine this with Australia’s strong economic credentials and our business friendly regulatory environment, it is a compelling combination”, Mr Jones said.
“Australia is very welcoming of investment from overseas. Foreign investment plays an important role in Australia’s economic success and accounts for 14% of employment, or about 1.3 million jobs, 50% and 46% of the value of goods and services exported respectively and 42% of private R&D; spending,” Mr Jones said.
Australian companies have also been active in investing offshore with Australian outward FDI stock in APEC economies increasing by 17% over the year to December 2006 to reach $194 billion. This accounts for 68% of the total stock of Australian FDI abroad.
The United States was the principal destination for Australia’s outward FDI within APEC, accounting for 60% of Australia’s FDI stock to APEC members, followed by New Zealand (21%), China and Hong Kong (4%), Singapore (2.3%), and Papua New Guinea (1.4%).
More About Invest Australia
Invest Australia, is the Australian Government’s inward investment agency that helps international companies build their business in Australia and offers investors a free, comprehensive and confidential service.
The Art Of The Property Deal
Investments
Purchasing property can be an emotional process. If you’re not savvy about the present market there is a good chance that emotion will get in the way, and in the end you’ll pay too much. Below are some helpful tips that might just end up saving you a lot of money and time.
Firstly, do your research. Many companies offer a service whereby you can purchase printouts of recent sales in an area. You may also find these resources useful: Zillow.com, Realtor.com, RP Data – Australia. Drive around with these printouts in hand, and compare the property you are contemplating buying to these. You need to make sure that these properties are very similar to the property you are looking at purchasing. For example, look at:
• land size
• location
• building structure (for example, brick versus fibro)
• garaging
• room sizes
• quantity of rooms
• swimming pool, etc
• which way it faces (north, south, east or west)
• when the property sold, etc.
Most of all when purchasing, you need to look at it being a long term decision of at least five to seven years. When negotiating, start low, usually offering around 15-20 per cent below the market value. When putting in low offers the selling agent will usually indicate that the offer is too low, and that you might be in a position that you will offend the vendor and that they might not deal with you. Ignore this. By law, any offer you present to a selling agent has to be delivered to the vendor, so any offer is better than no offer.
The second offer should be a lot stronger, so make sure that when this is put forward that your terms and conditions are also known (for example, when you are wanting to move in and what inclusions you would like with the property). The third offer is usually a smaller increment with a deadline date attached to it so that the negotiation doesn’t drag out too long. If that offer is not accepted a small fourth offer should be made to try and secure the property. If a price can not be agreed upon then walk away and let things cool for a couple of days. If it comes back to you then it was meant to be, and if it doesn’t there will always be another one.
Before making any offers it is important to get your finance in place so that should you strike a deal you can perform immediately. It is also important that you get a pest and building inspection if you are buying a house and a strata report should you be buying a unit. Whatever you do, don’t try and save a few dollars by not getting these, because in the long run it could cost you tens of thousands of dollars. Make sure that the sale contracts are reviewed by a reputable solicitor or conveyancer, and that if you have come to a successful negotiation with the vendor that you move quickly. If you don’t then someone could come in with more money and gazump you.
Should this process become too daunting and time consuming, then engage a buyer’s agent to help you with the search and negotiation of your new home or investment property. Having a professional negotiator giving you independent advice can save thousands of dollars, prevent costly mistakes and save a lot of time and unwanted stress. Buyer’s agents cover all phases of the purchasing process; from finding the right property and determining its true market value, to negotiating the best possible purchase price and bidding on your behalf at auction.
