Purchasing Australian Real-Estate as a Temporary or Non-Resident
Contrary to what many people believe or are led to believe it is actually possible to purchase property as a subclass 457 visa holder, or under any other temporary or non-resident visa subclass.
Ethos Migration has been asked on multiple occasions by temporary and other non resident visa holders if they are able to purchase property as either an investment or to actually live in it.
This guide will answer some of the most frequently asked questions in regards to purchasing Australian property as a non-resident.
As a non-Australian Citizen or Permanent Resident am I able to purchase Australian real estate?
The simple answer to this question is yes.
However it comes down to a range of individual circumstances for the client, however with the right guidance and support your dream of owning an Australian property can be achieved.
What is the first step in purchasing property as a non-resident?
It is important before you go to an auction to put in a bid, or start negotiating with real estate agents that you ensure that you can secure the finance to be able to purchase the property.
In some cases, non residents have most of the amount available so this does not apply, however in most circumstances people require finance from a financial institution.
If you require finance, it is important to arrange a fully-verified home loan pre-approval from a bank that fully understands your status in Australia.
A pre-approval is a letter from a financial institution advising that you meet their criteria for finance up to a certain limit which then gives you peace of mind that you can afford a certain property.
When arranging a pre-approval from a financial institution, also known as a lender, it is important that the lender fully checks your application to ensure your eligibility fully meets the financial institutions guidelines and criteria s, as a loan as a non-resident is very different from a loan for an Australian Citizen or an Australian permanent-resident.
What is the Foreign Investment Review Board (FIRB) and do they need to review my intent to purchase Australian property?
The Foreign Investment Review Board also known as FIRB is an Australian Government board put in place to examine proposals by foreign citizens who intend on investing in Australia.
It is CRITICALLY important, before you go ahead and commit to purchasing property in Australia that you seek approval from FIRB.
All temporary residents and non-citizens in Australia are required to gain FIRB approval before investing in Australia.
In certain circumstances exemptions do apply.
How to get approval from the Foreign Investment Review Board (FIRB)?
If you are looking to move into the property you are considering buying then generally getting approval from the FIRB is not an issue however, if you are looking to purchase the property as an investment certain restrictions do apply.
A general rule to take into consideration is the following:
If you are looking at purchasing property as an investment in Australia and do not intend in living in it you generally need to buy a brand new property, vacant land, or a house and land package.
For further information regarding investing in Australia please contact Ethos Migration today!