Changes to Foreign Investment Review process.
The Federal Government has relaxed the rules for foreigners to purchase Australian residential properties. Foreigners, visitors and overseas business will be able to buy residential properties more easily in Australia.
The changes mostly take effect from 18 December 2008. We list some of the changes below. You may also like to read the detailed brief from the Brisbane law firm of Hopgood Ganim, posted on our website by clicking here
- 50% limit removed - The existing requirement that only 50% of the new development can be sold to foreigners "off the plan" has been removed provided developers continue to market the development locally and overseas
- New dwelling definition - previously "new dwelling" was defined as a unit never having been sold or occupied. A "new dwelling" now includes dwellings that have never been sold but have been rented out for no more than twelve months
- Student acquisitions - Foreign students in Australia purchasing established residential dwellings are no longer restricted by the cap of $300,000 on the value of the residence
- Vacant land - Foreign persons now have 24 months to build on the vacant land purchase ( previously 12 months)
Q. Why should I consider buying property in Australia?
Australian housing has several positives. The market is undersupplied by more than 100,000 homes. It has the support of the Australian banks which is one of the strongest banking sector in the world today. Affordability is rising after successive cuts in interest rates by 30%. On the other hand, there may be unemployment, falling incomes, debt reduction (deleveraging) and consumer credit crunch with people unable to borrow.
Australia has 7 million households and a tenuous statistical connection between unemployment and house prices. In the 1990-92 recession, when unemployment was 10.9% and interest rates were in double digits, the ABS house price index rose by 2% a year. (information sourced from the Australian Financial Review). The supply shortage and 30% fall in interest rates should underpin the stability of house prices.
Q. What if I cannot speak English very well?
A. Do not worry - we can help you with Japanese, Chinese and Korean.
Q. What is the next step?
A. Look at the properties for sale on this website. You can contact us via the Email Us facility or by phone for more information about a particular property or general advice.