- The Australian Government has warmly welcomed and encouraged people from all parts of the world to make this country their home, based on the principle espoused by Nelson Mandela that “a country belongs to all those people who make it their home”. We have also welcomed with open arms investment in Australian real estate by foreign nationals.
- Purchasing a property by parents for their children while they study in Australia. This mainly happens near Universities and Colleges. The students get free accommodation while they are studying here and their parent’s investment property that they are living in keeps going up in value. In many cases, when they sell the property, they have recouped what they spent on education and in fact made some money.
- Australia has a stable economy with a stable currency.
- Your property will be protected by the Australian law. No one else can take control of your property except the owner. The real estate will manage your property and collect rent on your behalf which will then be transferred to your bank account monthly.
- High rental returns. We have properties with rental returns as high as 6.8% p.a. This means your rent will most probably pay off your property.
- High demand for rental properties with very low vacancy rates.
Foreign buyers generally fall into a number of categories.
Firstly, the retirees.
They primarily are chasing the sun and are looking for a sea change lifestyle as well as an investment.
Secondly, the purchase by students or their parents.
This mainly happens near Universities and Colleges. The students get free accommodation while they are studying here and their property keeps going up in value. In many cases, when they sell the property, they have recouped what they spent on education and in fact made some money,
Thirdly, there are the lock-up and leave purchasers.
They buy property here to use as their private holding home. Next there are those who buy in Australia because it is politically stable and they want to get money out of their own country.
Who is classified as a foreigner?
The Australian Foreign Investment Guidelines confirm that a foreign person wishing to acquire real estate in Australia must seek prior approval from the Government through the Foreign Investment Review Board (FIRB) or, as it is commonly known, “the Board” unless a specific exemption exists under the guidelines.
Link to Foreign Investment Review Board website http://firb.gov.au/
Buyers of real estate exempt from the Board’s approval
Property left to you in a will
If you are a foreigner and your Australian grandmother or uncle left you a unit in Sydney or a house in Tasmania in their will, then the title to that property can be transferred to you without even notifying the Board, let alone seeking its approval.
It’s within this area that most acquisitions by foreigners occur. A developer of residential units and houses can obtain approval from the Board to pre-sell such properties without the need to obtain the Board’s specific approval to each purchase in the following circumstances:
- no more than half of the units in any one development or stage of development are sold to foreign buyers where there are 10 or more units or dwellings in the development;
- if the developer has not obtained the buyer’s approval from the Board it is still possible to sell properties off the plan to foreign buyers, however the Board’s approval must be obtained for the specific purchase.
As we work with developers and builders throughout Australia, chances are that we would have properties in areas of your choice.
The next stage would be to work out the figures for you. Rate of return on Investment, your initial outlay, expected capital growth and what to expect in the whole investing process.