No Better time for Overseas Investors to buy Australian Property

On the 12th October 2008 the Australian Prime Minister, Kevin Rudd, announced the deposit and wholesale funding guarantees. The Government guarantees are designed to promote financial system stability and ensure the continued flow of credit throughout the economy at a time of heightened turbulence in international capital markets.
The guarantees apply to authorised deposit-taking institutions (ADIs) incorporated in Australia, which as a group, are of systemic importance to the functioning of the financial system and the broader economy, and which are subject to prudential regulation by the Australian Prudential Regulation Authority (APRA) in accordance with international standards. Recent developments in international wholesale funding markets have restricted the ability of Australian financial institutions to access funding, with potentially serious implications for liquidity and lending activity.
To address these pressures, the guarantees are designed to assist Australian banks, credit unions and building societies to continue to access funding in domestic and international credit markets. The guarantees are also designed to ensure that Australian institutions are not placed at a commercial disadvantage vis-à-vis their international competitors that have received similar government guarantees on their bank debt.

So what is the benefit of the guarantee for our property market?

For one, the Australian dollar cannot stay this low for long and so it is a fantastic opportunity for overseas investors to purchase property now. With the Government guarantees designed to promote financial system stability. The combination of these as well as the current financial crisis putting pressure on developers to be very negotiable with their stock, means there is not a better time to buy property than it is right now.