In recent few years, real estate investment in Australian property/housing has been a controversial topic.
Who is eligible to buy a house in Australia? Are you eligible if you’re moving from one state to another? Can a foreigner buy a house in Australia?
How to buy a house in Australia? These are the most generic questions found on the internet.
Indeed, who is eligible to buy a house in Australia? Together with points about why to invest in Australian property.
Read till the end of the article … This can be the flawless guide you might be seeking for.
Well, overseas investors, Australian immigrated citizens and ex-pats seeking high returns and security are pouring into Australia.
Started to invest in real estate since there’s a long history of sustained capital growth, with property prices usually doubling every 7 to 10 years.
Surprisingly, many Australian citizens, people on temporary or permanent visas are unaware that they are eligible for a home loan and are thus missing out on the benefits of the Australian property market.
While Australian citizens can easily buy a house with legal documents, home loans and some investigation.
However, foreign residents can purchase a home for investment purposes, the rules for purchasing a home to live in are a little more complicated.
Many questions arise in this situation.
What if you’re an Australian citizen who immigrated to an Australian different state? Are you still eligible?
It’s a big yes…!!
According to the Australian government, department of immigration and citizenship if you’re an Australian citizen who immigrated to an Australian different state:
“One of the first things you will need to do when you move to Australia is to find appropriate accommodation in the city or town where you are planning to live.
You will need to decide on whether you want to buy or rent a property.
This section will give you information on housing in Australia, ways to find the right property for you and who to go to for help.”
How can you buy a house?
The Australian government’s Department of Immigration and Citizenship suggests:
“Buying a property is a big decision. In Australia, the property is very expensive to purchase and will take several decades to pay off unless you have a substantial amount of savings.
Most Australians purchase property through the use of mortgages supplied by a bank, building society or mutual fund.
The Money – managing your finances section of these pages provides more information and listings of the organisations that operate in Australia. There are a range of factors to consider when buying property.
Conducting research and getting advice from many different sources will better place you to make the right decision for you.
Always think about your future when buying a property as what you need now (size, location, type of property etc.) may change over time.
Finding properties to buy is the same process as finding properties to rent. You will almost always have to deal with a real estate agent during a purchase.”
Can a non-resident buy a house in Australia?
Yes, however, there are certain restrictions. A non-resident can buy property only for investment purposes.
Before purchasing residential real estate, foreign buyers must obtain authorisation from the FIRB.
According to the Foreign Investment Review Board (FIRB) website says:
“The Government’s policy is to channel foreign investment into new dwellings as this creates additional jobs in the construction industry and helps support economic growth.
It can also increase government revenues, in the form of stamp duties and other taxes, and from the overall higher economic growth that flows from additional investment.”
This gives hope and encourages non-residents to buy new buildings, resulting in increased home construction with Australia’s foreign property investment laws.
Note: This does not apply to citizens of New Zealand.
Rules Principle for Foreign Home Buyers
The rules principle behind FIRB’s foreign investment strategy is to channel money towards new housing to increase supply.
The good news is that the majority of these applications are approved because they support new dwelling construction.
Unfortunately, the news isn’t so fantastic if you’re resembling to buy a new residence(i.e. a house).
Temporary residents are eligible to apply for a home to live in while they are in Australia.
This is normally contingent on you selling your home when you leave Australia or subsequently becoming a permanent resident or citizen.
Non-residents are unable to purchase a house to rent out or use as a vacation home.
Foreign residents are non-citizens who do not live continuously but having visas that allow them to stay in Australia for a set period.
Foreign residents can apply to purchase a home for remodelling purposes, such as tearing down an old house and replacing it with an apartment building.
To encourage greater home construction, this is usually only permitted if two residences are created for everyone that is demolished.
Foreign non-residents include foreign governments, businesses, companies and general partners of a limited partnership who fit the criteria of a foreign person.
Foreign corporations with a large local presence can purchase residences for their Australian employees, but not for investment or rental purposes.
Why invest in Australian property?
Australia is a desirable destination to live in because of its multiple global cities and magnificent natural beauty.
Australian real estate has experienced consistent capital growth over the last 100 years, with property prices typically doubling every 7 to 10 years.
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The property market has a track record of price stability. Prices in Australia have never fallen by more than 20% in a single year.
Here, are some more reasons why to invest in Australian Property:
- A continuously high level of immigration and strong employment demand are the key reasons for this.
- The government’s approval process for foreign citizens is straightforward, although there are additional fees to pay.
- Investors have less impact in Australia because the majority of the housing market is owner-occupied.
- Many countries have strict foreign investment laws or banking rules, making it difficult to invest. However, this is not the situation in Australia. It is not necessary to establish a company in Australia or to make a purchase with an Australian citizen.
How to buy a house in Australia? The process
Before you begin, make sure you do your homework, plan, and budget for your property buy in Australia.
1. Organize your team of professionals. Conveyancer and Mortgage broker are must while you can have accountant and buyers agent if required in your team.
2. Obtain pre-approval before you begin looking for a home. What’s more, you know if you qualify for a loan and how much you can borrow. Why waste time looking for a home or apartment only to discover that you are unable to obtain financing?
3. Apply for a Mortgage. Make sure you have all of the relevant loan documentation on hand, such as pay stubs, tax records, and a letter of employment, to establish your income.
4. Check with the FIRB to see if you qualify. If you’re a non-resident or have a temporary visa, you must obtain authorization from the Foreign Investment Review Board (FIRB) before purchasing property in Australia.
5. Find a property, compare and negotiate the purchase price.
6. Get a formal mortgage approval, go to the lender’s website and fill out the application. When you’ve located a property you want to buy, you can send the contract to your mortgage broker for formal approval.
7. Exchange your contract after your loan has been formally approved and your solicitor or conveyancer gives you the go-ahead.
8. seek FIRB approval. The contract you’re signing must have the clause “subject to FIRB approval”.
9. Final arrangement and settlement.
Note: If you are buying a house in Sydney NSW Australia then Read this things to be noted before buying a house in Sydney
You have got comprehensive ideas of who is eligible to buy a house in Australia with all possible principles.
Applying for housing in Australia is a very easy process, which only includes Foreign Investment Review Board (FIRB) approval in the process if you’re a non-resident.
However, It’s even easier for New Zealanders as they don’t need to apply for FIRB’s qualification.
If you are eligible to buy Australian property and invest in the top real estate market of the world that has never seen loss. If you want to save your time in these process’s you can contact Metro Homes and Partners who can handle this job professionally.
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