Buying Property in Australia
Australian real estate values have increased significantly in recent years, and with the outlook remaining positive, buying property in Australia remains an attractive proposition. Whether you are considering buying property in Australia for investment or lifestyle reasons, the following information will enable you to make an informed decision:
1. Buying property in Australia is relatively straightforward for foreign investors, and the government actively encourages foreign investment in Australian real estate.
2. Non-resident, non-Australian citizens must first obtain approval from the Foreign Investment Review Board (FIRB) prior to buying property in Australia.
3. A corporation in which several non-Australian citizens and any associates have 40 per cent or more total shareholding is also considered foreign, and must seek FIRB approval.
4. A foreigner may acquire property in Australia without FIRB approval under the following circumstances:
- If the property is bought off-plan - in this case the property developer obtains approval itself from the FIRB to pre-sell no more than half the units in a development to foreigners
- If the property is left in a will;
- If the foreigner is married to an Australian citizen;
- If the foreigner is a permanent resident of Australia.
5. When required, the FIRB will approve or reject a property purchase application within 30 days of receiving the application. It must advise the buyer of the decision within a further 10 days.
6. There are two principal methods of buying property in Australia:
- Auction Method - under this method, the successful purchaser must pay a 10% non-refundable deposit on the day of the auction. FIRB approval to bid at a property auction is required for those not eligible for exemption.
- Conventional Method - the potential purchaser makes an offer for a property of their choice. If the offer is accepted, a refundable holding deposit may be payable while the Contract of Sale is drawn up. Once the Contract of Sale is signed, it is normal to pay a 10% non-refundable deposit.
7. Income and capital gains sourced from Australian property must be reported to the country's tax authorities.
8. For more details on the tax implications of buying a property in Australia, please refer to the Australian Taxation Office (ATO) website.
9. For more information on Healy Consultants' Australia migration services, kindly follow this link.
Contact Us
For more information on any of our Australia property services, email email@healyconsultants.com or telephone us at +61 280 147 568.
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