Foreign Investment - Are you Confused?

Are you a foreign citizen keen to buy property in Australia? Or perhaps you have international friends and family interested to make Australia home. Who is eligible to buy local property, and what can be bought? You may be surprised.........
ARE YOU ELIGIBLE?: Foreign citizens or companies wishing to buy residential real estate must apply to the Australian Government’s Foreign Investment Review Board (FIRB). You must apply to FIRB if you DO NOT fit one of the following special category visa holder groups:
· Australian citizens,
· Approved migrants,
· Permanent residents of Australia,
· A foreign national holding a permanent visa or a foreign citizen entitled to permanent residence in Australia.
BEFORE YOU SIGN ANYTHING!: 30 days must be allowed for FIRB to assess and approve or deny applications. Therefore, real estate sales contracts with foreign citizens must contain a clause stating the purchase is conditional upon FIRB approval, likely with 30 days cooling-off (rather than standard 5-days)  from contract exchange to purchase confirmation. This means purchases by auction or 66W certificate are unsuitable as they are unconditional purchase contracts. Fines apply to persons who acquire property without first seeking approval.
FIND YOUR PROPERTY: Approval can only be granted on a specifically nominated property. There are no "general" approvals or pre-approvals. FIRB reviews all intended purchases of residential real estate, regardless of price and whether existing or built brand new.
RENT Vs RESIDENCE: Real estate cannot be purchased with intent to rent it out. Property must be used as a permanent residence. Those entitled include residents in Australia on a Temporary Entry Visa (with over 12 months validity) seeking to buy a property for personal residential accommodation. e.g  tertiary students over 18 and people in Australia for work. Property must be sold when this status no longer applies or the buyers no longer live in Australia.
BOSS BUYS: A company from a foreign country may buy up to 2 houses/ apartments for its executives posted to Australia for more than 12 months. The executives have to be specifically named and property must be used for residential accommodation. When the employee is no longer living in Australia that property must be sold.
"OFF-THE-PLAN" SPECIALS: Different rules affect properties newly built and never occupied or sold. These are permitted for purchase by foreign investors if the developer applies in advance for this to be allowed. You must ask to see a copy of the developer’s approval letter to ensure that FIRB approval exists for sales to foreign citizens. If a foreign citizen buys a property in this way, the property can be rented out, sold or used by the purchaser. However, foreign interests cannot hold more than half the apartments or townhouses in any one development.
ASK YOUR SOLICITOR: You must always seek lawyer/ solicitor advice on your unique circumstances and check government updates on rules and regulations!

Good luck with your purchase. Check the links for further info and forms:


By Martyne Ford - Sales and Marketing Co-Ordinator: martyne@sydneylinks.net