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What Foreigners Should Know About Property Requirements in Australia

5 July 2016

Renee Bates

The world has become a global village with most people establishing links in other parts of the world. As such, the acquisition of property is inevitable, especially individuals who have relocated to their preferred destinations. However, it is a challenge for foreigners to acquire property due to a myriad of laws and other requirements in Australia. In fact, the rules have been changed making it even harder for foreigners to buy property in Australia with the enactment of stiffer laws. With due diligence, non-citizens will be aware of what is needed or which category that they qualify in before purchasing assets in Australia. A good start will be in the virtual realm where interested individuals can gather sufficient information on property acquisition. The article will offer useful pointers on the main areas that investors can exploit to acquire property in Australia. Contact a local lawyer for further assistance.

1. Uninhabited land – Even though the rules have been reviewed, foreigners can still snap a piece of the Australian real estate, especially on vacant land where the government encourages new developments. However, the investor should be aware that they must develop that land within four years of acquiring the property or else the asset will be repossessed.
2. New Buildings – another possible avenue that non-citizens can exploit to acquire houses or commercial buildings is from the off- the- plan purchase where foreigners can buy new homes that have never been occupied or sold to any owner previously. The catch in this approach is that foreigners cannot purchase more than half of the property for sale.
3. Multinationals – due to the work related relocation, individuals working in corporations that have established a presence in Australia can acquire property in Australia if the said assets are for use by company staff, especially senior management.
4. Accommodation Facilities – foreigners will be pleased to learn that they can acquire commercial buildings in the hospitality industry, for example, hotels, and resorts. To burst the bubble, only high net worth individuals qualify for this category since the investment should be worth $50 million and above. However, interested parties can invest $5 million property that is listed as heritage stocks in the bourse.
5. Visa type – Foreigners who reside in Australia and hold certain types of visas that include permanent residential visa or the special category visa are exempted from seeking approval before they purchase property in the country. It is worthy to mention that these individuals can acquire assets either in their name or through trusts making it a viable option to purchase some property.   

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