It has been predicted that, should the European meltdown cause a worldwide credit crunch, property prices in Australia could fall by a further 25 per cent. The Economist magazine has stated that global property prices are still very much over-valued: “The latest global house price indicators are now falling in eight of the 16 countries surveyed by the magazine, compared with five countries in late 2010.”

Property prices are estimated to be over-valued in Australia, Belgium, Canada, France, New Zealand, Britain, the Netherlands, Spain and Sweden by 25 per cent or more. If there is a breakdown of the single currency, the euro, then prices around the world, including Australia will fall a great deal, meaning bargains to be had by property investors or those looking to live in Australia.

A spokesman for ANZ Bank said that he believed the full picture was not clear, but ANZ Bank property analyst David Cannington said ratios didn’t give the full picture: “We think there’s more to the stability of the housing sector … than is suggested in The Economist’s analysis.”

Anyone considering buying a property in Australia should include planning for the transfer of their pounds into Australian dollars. For information on how to do this safely and save money when doing so, speak to currency exchange specialist Smart Currency Exchange.

To understand the full step-by-step process to buying a property in Australia, collect The Overseas Guides Company’s ‘Australia Property Buying Guide’