{"id":22724,"date":"2018-12-03T09:00:04","date_gmt":"2018-12-03T14:00:04","guid":{"rendered":"http:\/\/www.escapeartist.com\/?p=22724"},"modified":"2020-06-19T13:27:17","modified_gmt":"2020-06-19T17:27:17","slug":"buying-property-in-australia","status":"publish","type":"post","link":"https:\/\/www.escapeartist.com\/blog\/buying-property-in-australia\/","title":{"rendered":"Buying Property in Australia"},"content":{"rendered":"<h2><strong>Buying Property in Australia<\/strong><\/h2>\n<p><a href=\"https:\/\/dfat.gov.au\/trade\/resources\/investment-statistics\/Pages\/statistics-on-who-invests-in-australia.aspx\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Greater numbers of overseas investors<\/span><\/a><span style=\"font-weight: 400;\"> are turning their gaze towards the Australian property market thanks to its strong returns and stability.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As more Australian residents with temporary or permanent visas realize they can qualify for a home loan the real estate market, which has dipped recently, is preparing itself for another boom period, making right now a great time to get involved.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><strong>The difference between Australia and other property markets<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">The <\/span><a href=\"https:\/\/www.apra.gov.au\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Australian Prudential Regulation Authority<\/span><\/a><span style=\"font-weight: 400;\"> (APRA) maintains a responsible lending legislation along with economic management policies that keep Australian property relatively low risk. Prices have never fallen more than 20 percent in a single year which is very attractive when compared to property markets in places like the USA.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Some key points that maintain this for Australia include:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Large numbers of home ownership preventing investors from having too much impact<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The Australian population is growing faster than the number of new dwellings <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Prices have risen with the market\u2019s ability to buy<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><strong>Investing in Australia<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">While some countries have restrictive foreign investment laws, government approval for foreign investors is relatively simple in Australia. Both residential and commercial properties are up for grabs during a <\/span><a href=\"https:\/\/www.urban.com.au\/developments\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">significant time for development in major cities<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are specialist mortgage brokers to help overseas investors obtain finance and navigate the consumer protection legislation and legal system (which is based on the UK system). Non-resident lending is far more difficult for a foreign citizen as opposed to a temporary resident but not impossible with the right guidance.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><strong>The buying process<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">Always speak to a local real estate agent to help find an affordable area with high returns. Doing your research is critical, and <\/span><a href=\"https:\/\/www.urban.com.au\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">there are many online resources<\/span><\/a><span style=\"font-weight: 400;\"> that can help explain which areas to focus on to maximize your investment. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Australian banks will not lend unless you prove you can afford the debt, and the rules are tighter now more than ever. You will also require:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A conveyancer or solicitor to handle the legal work and complete searches on the property\/complete transfer of ownership <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A mortgage broker, preferably with experience in helping non-residents <\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">An accountant, not essential but beneficial if you need help structuring your financials and navigating Australian tax legislation<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">A buyer\u2019s agent, also not a must but useful to help physically inspect the property and give advice<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><span style=\"font-weight: 400;\"><strong>Foreign Investment Review Board (FIRB)<\/strong> <\/span><\/h2>\n<p><span style=\"font-weight: 400;\">All non-residents or temporary visa holders are legally required to obtain permission to buy property in Australia from the <\/span><a href=\"http:\/\/firb.gov.au\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Foreign Investment Review Board<\/span><\/a><span style=\"font-weight: 400;\"> (FIRB). This is not, however, a requirement for Australian permanent residents and New Zealand citizens.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The approval process is relatively simple and can take up to two weeks from the date of application. Fees are dependent on the price of the property.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><strong>Settlement<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">The term &#8220;settlement\u201d means the property has changed hands and is often handled by your conveyancer or solicitor along with the bank and mortgage broker.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The lender often keeps the property title, or it can be released to you for a small fee.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><strong>Final points to remember<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">While you could manage the property yourself, a property manager will be the more straightforward choice if you are located overseas. They will act as a sole point of contact and manage tenants, inspections and maintenance\/repairs for a small percentage of the rent.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You will also be required to lodge a tax return in Australia each year. A property manager will provide you with all of the necessary information for rent and expenses which can be transferred to an Australian accountant to prepare and submit your tax return.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><strong>I hope you enjoyed reading: Buying Property in Australia.\u00a0 <\/strong><b>For information on Asset Protection or moving your business to Australia, please contact<\/b><a href=\"https:\/\/www.escapeartist.com\/offshore-services\"> <b>our office HERE<\/b><\/a><b>. I&#8217;ve also added some really great articles for you to read:<\/b><\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"https:\/\/www.escapeartist.com\/blog\/immigrating-australia\/\"><b>Immigrating to Australia<\/b><\/a><\/p>\n<p><a href=\"https:\/\/www.escapeartist.com\/blog\/best-5-ways-to-explore-australia-in-2020\/\"><b>Best 5 Ways to Explore Australia in 2020<\/b><\/a><\/p>\n<p><a href=\"https:\/\/www.escapeartist.com\/blog\/quick-guide-expats-moving-australia\/\"><b>Quick Guide for Expats Moving to Australia<\/b><\/a><\/p>\n<p><a href=\"https:\/\/www.escapeartist.com\/blog\/investment-opportunities-by-sector-in-australia\/\"><b>Investment Opportunities by Sector in Australia<\/b><\/a><\/p>\n<p><a href=\"https:\/\/www.escapeartist.com\/blog\/why-investing-in-australia\/\"><b>Why Investing in Australia<\/b><\/a><\/p>\n<p><a href=\"https:\/\/www.escapeartist.com\/blog\/the-steps-to-becoming-a-perpetual-traveller-a-guide-to-flag-theory\/\"><b>The Steps to Becoming a Perpetual Traveller: a Guide to Flag Theory<\/b><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Buying Property in Australia Greater numbers of overseas investors are turning their gaze towards the Australian property market thanks to its strong returns and stability. As more Australian residents with temporary or permanent visas realize they can qualify for a home loan the real estate market, which has dipped recently, is preparing itself for another [&hellip;]<\/p>\n","protected":false},"author":308,"featured_media":36015,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","om_disable_all_campaigns":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2,9412],"tags":[71,1136,235,380,451],"yst_prominent_words":[2725,2728,18211,4039,27235,18207,2701,18204,18203,18202,25672,24486,18205,18208,18213,18210,2100,18209,18212,18206],"acf":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/www.escapeartist.com\/wp-content\/uploads\/2018\/12\/Australia-2.jpg","_links":{"self":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/posts\/22724"}],"collection":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/users\/308"}],"replies":[{"embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/comments?post=22724"}],"version-history":[{"count":7,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/posts\/22724\/revisions"}],"predecessor-version":[{"id":36034,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/posts\/22724\/revisions\/36034"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/media\/36015"}],"wp:attachment":[{"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/media?parent=22724"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/categories?post=22724"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/tags?post=22724"},{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/www.escapeartist.com\/wp-json\/wp\/v2\/yst_prominent_words?post=22724"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}