What International Buyers Must Know Before Buying Australian Property
Announcement posted by Origin Projects - Land & New Homes in WA 13 Dec 2013
Developer of house and land packages in Perth suburbs warns international buyers to do their “due diligence” before buying property in Australia due to legal constraints.
Perth, WA, 13 December 2013 - Lately, international buyers are beginning to see Australian property as a good investment. However, the Australian Government has developed a set of regulations that prohibits foreign speculators from decreasing the supply of homes available to its residents. Australia requires that any foreigner who buys property in the country increases the supply of new homes.
Prior Approval is Necessary
Foreigners are required to obtain approval from the Government before buying a house on Australian soil. This includes anyone who isn't a permanent Australian resident except for a non-resident spouse of an Australian citizen or an Australian who currently lives out of the country.
If a non-Australian doesn't obtain approval beforehand, Australia won't allow that person to honour any contract for buying property or building a home.
Applications that Usually Obtain Approval
A foreigner who submits an application to buy vacant land will usually be approved, but with the understanding that construction must begin within a year of the transaction. Applications for redeveloping existing residences are usually approved, but they must increase the housing supply. In other words, a single home must be redeveloped into some form of units.
An application for a house and land package, a unit or a townhouse in a new development will usually be approved. The properties can be bought before, during or shortly after construction, as long nobody else has owned or occupied it. Australian regulations prohibit more than half of the properties within a development being bought or owned by foreign investors.
Established Homes Usually Aren't Approved
Buying a home that is already established doesn't increase the supply of new homes, so it normally isn't allowed. However, a temporary Australian resident who has been in the country for more than a year can buy a home as a residence. In addition, a foreign company is allowed to buy a home for a senior executive to live in for more than a year.
Strict Penalties for Non-Compliance
If a foreigner doesn't get pre-approval from the Government, they will not be allowed to execute a contract to purchase a home. The transaction will have to be cancelled or the foreign national will be forced to sell the home. This usually results in the property being sold at a below-market price.
In addition, intentional violation of the law can result in imprisonment or fines. Violations include providing false or misleading information, purchasing a property after an application has been denied or buying a property that doesn't comply with development rules.
Ignoring the law or buying a home that doesn't increase the housing supply is also considered a violation.
Navigating the Waters
4Land Property Group, based in Perth, is very experienced in helping foreign nationals comply with Australian laws and regulations. Travis Kell, Director and Development Manager of 4Land Property Group, encourages anyone from outside of Australia to do their “due diligence” before attempting to buy a home.
According to Kell: “If you are an international attempting to buy a home in Australia, you have to purchase from the right developer to ensure that you obey our regulations. In addition, you must hire an experienced Australian attorney to help you through the tricky spots. Don't leave anything to chance: call us today.”
4Land Property Group offers house and land packages in their master planned estates in various Perth suburbs. To inquire about any property in their portfolio, call (08) 9301 4445 or visit their website: http://www.4land.com.au/.
Prior Approval is Necessary
Foreigners are required to obtain approval from the Government before buying a house on Australian soil. This includes anyone who isn't a permanent Australian resident except for a non-resident spouse of an Australian citizen or an Australian who currently lives out of the country.
If a non-Australian doesn't obtain approval beforehand, Australia won't allow that person to honour any contract for buying property or building a home.
Applications that Usually Obtain Approval
A foreigner who submits an application to buy vacant land will usually be approved, but with the understanding that construction must begin within a year of the transaction. Applications for redeveloping existing residences are usually approved, but they must increase the housing supply. In other words, a single home must be redeveloped into some form of units.
An application for a house and land package, a unit or a townhouse in a new development will usually be approved. The properties can be bought before, during or shortly after construction, as long nobody else has owned or occupied it. Australian regulations prohibit more than half of the properties within a development being bought or owned by foreign investors.
Established Homes Usually Aren't Approved
Buying a home that is already established doesn't increase the supply of new homes, so it normally isn't allowed. However, a temporary Australian resident who has been in the country for more than a year can buy a home as a residence. In addition, a foreign company is allowed to buy a home for a senior executive to live in for more than a year.
Strict Penalties for Non-Compliance
If a foreigner doesn't get pre-approval from the Government, they will not be allowed to execute a contract to purchase a home. The transaction will have to be cancelled or the foreign national will be forced to sell the home. This usually results in the property being sold at a below-market price.
In addition, intentional violation of the law can result in imprisonment or fines. Violations include providing false or misleading information, purchasing a property after an application has been denied or buying a property that doesn't comply with development rules.
Ignoring the law or buying a home that doesn't increase the housing supply is also considered a violation.
Navigating the Waters
4Land Property Group, based in Perth, is very experienced in helping foreign nationals comply with Australian laws and regulations. Travis Kell, Director and Development Manager of 4Land Property Group, encourages anyone from outside of Australia to do their “due diligence” before attempting to buy a home.
According to Kell: “If you are an international attempting to buy a home in Australia, you have to purchase from the right developer to ensure that you obey our regulations. In addition, you must hire an experienced Australian attorney to help you through the tricky spots. Don't leave anything to chance: call us today.”
4Land Property Group offers house and land packages in their master planned estates in various Perth suburbs. To inquire about any property in their portfolio, call (08) 9301 4445 or visit their website: http://www.4land.com.au/.