Author: Clarence Ling
Category: News
Published: 18 August 2015

COMMENTARY: Australia, Why it is a Safe Place to Invest

Summary: In this blog post we explain why property investment in Australia is attractive, and why it is generally a safe place to invest. The laws, political and cultural environment are conducive to good property investment with solid returns. This article explains some reasons why people like to invest in Australia

Australia, a safe place to invest

Australia,  being a Western country, enjoys the rule of law. That in itself gives safety to invest. However, let us look at some other reasons.

Freehold land

Land ownership is a key part of the safety to invest in Australia. Most Australian properties are freehold, meaning the property will never be reacquired by the government and you have perpetual ownership.

Deposits are kept in a trust account

That is correct. All deposits on purchases go into a trust account. The developer or individual, as vendor, cannot access this money until settlement.The developer has to raise capital themselves to fund the project, whether it be bank borrowing or equity raising.The deposit is only forfeited when there is a breach of contract by the buyer.There is therefore no way a developer can run away with your deposit and leave the project unfinished.If the project cannot complete, the vendor or developer is bound to return your money by law.

Strong consumer laws

Australia has strong consumer protection laws, under the trade practice law called the Australian Consumer Law. Vendors cannot mislead buyers or make false statements unless they want to face legal action.At state level the Department of Commerce regulates this law and on federal level, the Australian Competition and Consumer Commission (ACCC). These watchdogs are very active and regularly prosecute people and corporations.

Guaranteed amenities

Under the supervision of Australian local government, no development site will be without amenities like schools, shopping centres and so on nearby. It is a condition for a development to proceed to have such amenities nearby the development site.

Without such amenities nearby or to be built in future, no development can proceed or even be approved.

Real estate law: No two tier pricing

Two tier marketing means to sell properties at different pricing to separate parties, or having two different sales pricing. Under the real estate laws of Australia, no two tier marketing is allowed, even for foreign sales. Any developer or real estate agent who does this is liable for legal action.


Australia has good laws and procedures to ensure your property investment plans have less likelihood to go sour. Because of the rule of law, you can be assured that most people would abide by the law and act within the rules. Of course, there are never guarantees, but it is hoped that these facts are reassurance for you.

About the Author

Clarence Ling Marketer

Clarence Ling

Clarence Ling is the founder and business owner of CLASS Digital Marketing. He is a self trained Joomla Front End Web Designer and a Digital Marketer, constantly procuring the latest martech (marketing tech) and incorporating current developments in marketing. Based in Perth, Western Australia, he is also a real estate agent in Malaysia, selling Australian property overseas, attached to the largest and best East Malaysian real estate agency, Kozin Real Estate Sdn Bhd. Clarence regularly commutes between Australia, Malaysia and sometimes other parts of Asia in his line of work.

Phone (Australia): +61 413 665 375
Phone (Malaysia): +60 12 818 1160