BUYING AUSTRALIAN REAL ESTATE PROPERTY - For Overseas Buyers

"This is an update with links to Government website details below"The following information has been supplied directly by the Government body known as - "The Foreign Investment Review Board" (FIRB)

It is the Government's policy that foreign investment in Residential Real Estate should increase Australia's housing stock.   That is, the policy seeks to channel foreign investment in the housing sector into activity that directly increases the supply of new housing (such as new developments of house and land, home units and townhouses) and brings benefits to the local building industry and its suppliers. 

 All Residential Real Estate applications are considered in light of this overarching principle.  Below are a number of questions which relate to different types of Residential Real Estate which you may be considering acquiring.   

Certain acquisitions do not require notification or approval - Foreign persons should determine whether their proposed acquisition is exempt and if in doubt, seek legal advice.  

You do not need Government approval to buy residential real estate if you are:  

An Australian citizen (living at home or overseas) or you are ordinarily resident in Australia;

A New Zealand citizen;A foreign national who holds an Australian permanent resident visa; or

A foreign national buying a property as joint tenants with their Australian citizen spouse.  

DEFINITIONS can be found at  http://www.firb.gov.au/content/definitions.asp#joint_tenants and also under section 5 of the Foreign Acquisitions and Takeovers Act 1975 (FATA)  

Regardless of your citizenship or residency, you do not need Government approval for:  

New dwellings bought from a developer that has pre-approval to sell them to foreign persons;

An interest in a time share scheme that allows you (and any associates) to use it for up to four weeks per year;

Certain residential real estate in Integrated Tourism Resorts;

An interest acquired by will or devolution by operation of law; or

An interest acquired from a Government in Australia (Commonwealth, State or Territory, or local) or a statutory corporation formed for a public purpose.  

Other exemptions may apply if you are:  

A company, trust or managed investment scheme, including an Australian corporation or trust that is only owned by or for the benefit of individuals who are exempt; or

Buying shares or units in an Australian urban land corporation or trust.

Please note that the (FIRB) do not issue exemption letters.  

All of the precise information needed can be found at the Government website http://www.firb.gov.au/content/default.asp 

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