Many first-time and seasoned investors are turning to residential investment property as a source of secure, sustainable ROI (Return On Investment). As this trend continues to grow, so has the thirst for new markets and Australia is fast becoming a recognised prime country for suitable secure and qualitative investment properties.
To be able to purchase property in Australia, you must be formerly approved by a Federal Government Body known as the Foreign Investment Review Board (‘the FIRB’).
APWS will ensure you fully comply with FIRB residential investment property purchase regulation. In fact APWS has designed its strategy around the FIRB investor approval.
You may be deciding to purchase outside of your country for the following :
- Lower purchase cost and better rate of return
- Brand new properties and managed rental return
- Safe environment to keep your excess cash secure and making double digit capital growth year in and year out
- Laying the foundations to migrate in the following years, if so desired (average migration period for visa and immigration process is around 2 years) and earning substantial rate of return in the meantime
Note: All examples on this website are configured to capitalise on the tax paid from income generated in Australia. You will need to seek professional advice on the ability to offset taxes you pay from your income against Australian residential investment property.
FIRB Investment Rules for Australian non-permanent residents
The Australian Federal Government controls the purchasing of Australian businesses and properties by foreign investors and persons, either in or outside Australia, through the Foreign Investment Review Board (‘the FIRB’).
Where a foreign interest in charge of, owns or controls 15% or more of an Australian company, it may be deemed by the FIRB to be a foreign company.
Foreign investors and persons, who fail to comply with the FIRB’s investment rules, are subject to a possible
- two years imprisonment or a fine of AU$50,000.00 (for foreign persons)
- cancellation of contracts and compulsory divestiture (forced sale) of Australian property
- fine of AU$250,000.00 (for foreign companies)
With that, Australian investment rules require certain legalities and contracts involving foreign persons must first be subject to FIRB approval.
A general outline not advice to be relied upon is below of the FIRB rules faced by foreign nationals (i.e. people who are not permanent Australian residents thinking of buying) :
1. New residential property that has never previously been sold by the builder and has never previously been inhabited can be sold to a foreign person where certain conditions are satisfied. Builders and developers are only to sell half of the residential properties they build to foreign persons. FIRB approval must first be obtained
2. A foreign person may not purchase existing residential property unless a proposal for substantial improvement or re-development of the property has been carried out. FIRB approval must first be obtained
3. Rural land holdings valued over a prescribed sum must first have the FIRB’s approval
4. Businesses-Commercial property valued at less than $50,000,000.00 can be sold to foreign persons without FIRB approval. Business or commercial property that is valued more than $50,000,000.00 must first have FIRB approval (Note, special rules relate to investors of the U.S.A). Other special rules are applicable depending on industry sector
5. Off the plan units/apartments can be sold to a foreign person or entity provided the developer selling has pre-approval from the FIRB (note, no more than 50% of the development can be sold to foreign persons)
6. Vacant land can be purchased by a foreign investor who undertakes to commence construction of a building on the land within 12 months of its acquisition. FIRB approval must first be obtained
7. Recent changes to Foreign Investment Policy as of 04.08.2009 click here
Special FIRB rules relating to permanent and temporary Australian visa holders
1. A foreign person who is married to an Australian generally is permitted to acquire property jointly with their cohabitating spouse that can include an eligible de-facto partner. FIRB approval must first be obtained
2. A permanent resident visa holder is permitted to purchase an Australian property or business interest in Australia without FIRB approval
3. A temporary resident visa holder can only purchase property or business in Australia subject to FIRB rules outlined. Approval from the FIRB though can be sought for a person or recognised entity holding a temporary residence visa (generally with a duration of no less than 12 months eg 457, 309, 820) to purchase one (1) residential property that will serve as their private residence while remaining in Australia for the duration their visa allows
For more information about foreign investment rules go to FIRB
To view (a sample) the many and various projects available click here
