Owning your home in Australia is a dream shared by many migrants. However, depending on your residency status, the rules for foreign persons are complex and subject to regular change. RHYGAN WERRETT from RMB Lawyers explains:
The first question to ask is whether you are defined as a foreign person.
Australian citizens are not foreign persons under any circumstances. New Zealand citizens and permanent residents may not be foreign persons provided they have been in Australia for 200 or more days in the 12 months prior.
Individuals who hold temporary visas including visitor visas, bridging visas, business visas etc are considered foreign persons.
If you are deemed to be a foreign person holding a temporary visa, you must obtain approval from the Foreign Investment Review Board.
As a temporary resident, you may be able to purchase a single established dwelling or new dwelling to reside in. You must use this dwelling as your principal place of residence.
Temporary residents may also be able to purchase an unlimited number of investment properties but ONLY if those properties are new dwellings.
Temporary residents will either need to get specific approval for each property purchase or obtain an exemption certificate, which is valid for 12 months and will detail the conditions of the purchase (e.g a single dwelling below a monetary amount).
Approval applications are lodged through Online Services for Foreign Investors.
If you have already put an offer on a property purchase before receiving approval, we would strongly recommend that you insert a clause making the purchase conditional on approval.
Once you have received your approval. You will be able to put an offer on a house and finalise the settlement. You should note that as a foreign person, you will also be subject to the usual stamp duty plus a Foreign Person Surcharge Duty (currently 9% of property value).
Finally, once completed, you must register your purchase with the Register of Foreign Ownership of Australian Assets, also completed through the Online Services for Foreign Investors.
Each year thereafter you must lodge a Vacancy Fee Return to confirm that the property remains your principal place of residence or (if a new dwelling) if still rented out.
If your property is no longer occupied in accordance with any conditions, you will be required to sell that asset.
At RMBMW we can guide you through this complex process and get you into the Australia property market.