APRA has made the purchase of Australian property to Non Residents, more challenging in recent years.
To purchase established real estate in Australia, you must be an Australian or New Zealand citizen or meet the Foreign Investment Review Board’s requirements. To find out if you are eligible to invest in Australian residential property visit the Foreign Investment Review Board site here.
If you are a foreign resident you cannot buy an established residential dwelling in Australia, either directly in your name or through a trust relationship or company structure. Penalties apply for breaching this rule.
Visa conditions are constantly changing with Government Policy and are regularly amended. Education Visa’s can be very attractive for Non-Residents and impact the terms on which you can purchase property. Stay current by checking the relevant website. Changes are scheduled for 1 July 2016.
Getting this wrong can mean you will burn a lot of money. It is SO important to ensure you buy the correct property type and have the correct structure in place to accommodate the best outcomes with Australian taxation laws.
You can buy other types of Australian residential property, such as new dwellings, vacant land and property that is to be redeveloped, but you must first get approval from the Foreign Investment Review Board. There is a minimum $5,000 fee for FIRB approval, depending on the value of your purchase.
If you are a temporary resident you can buy an established dwelling if you use it as your residence in Australia and get approval from the Foreign Investment Review Board. There are strict terms about the disposal when you leave.
Hatch Property Australia can assist with the process of identifying suitable property investments , connect you with specialist finance providers for foreign investor loans, legal representation, accounting services, property management services and do all the legwork on your behalf. You can check out the Australian Government ATO website for information regarding how foreign investment income is treated by the Australian Tax Office here.
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