Wealthy Asians buying up in Australia....due to a relaxation of the FIRB
Apart from the fact the Australia is seen as a very attractive place to live.... we have a very large immigration program, 300,000 annual intake this year, and 430,000 foreign students some of whom may stay here.....add to that a very large number of immigrants who have taken up residence here over the last 60 or so years....and then they bring their extended families over....
since everything is so bright and rosy compared to the rest of the world....including property prices not falling over....it does not take much to wonder
just how many more will see Australia as even more attractive place to live....and want to purchase a home here
now back to the FIRB..............
the main changes are the removal of the 300,000 limit on student visa holders for established dwellings, temporary residents will not have to notify the FIRB for purchases..
and the 50% limit on new dwellings to foreign persons is removed........
plus applications to be streamlined and processed faster...
Foreign Ownership Laws are:
New dwellings
The existing requirement allows
only 50% of new dwellings to be
sold to foreign persons in an ‘off-the-plan’ situation. This was lifted, provided developers market locally
as well as overseas
Previously, a ‘new dwelling’ was defined as never previously occupied or sold. This now includes dwellings that were not sold by the developer but were rented out for no more than 12 months
Second-hand dwellings
Student visa holders residing in Australia are no longer subject to a $300,000 limit on the value of an established dwelling purchased as their principal place of residence
Temporary residents won't be required to notify the FIRB of proposed acquisitions of an established dwelling for their
own residence, any new dwellings and single blocks of vacant residential land
Foreign-owned companies can now purchase established dwellings for the use of their Australian-based staff provided that they sell or rent them if they're expected to remain vacant for more than six months
Vacant residential land
Foreign-owned companies, trust estates and non-resident foreign persons who purchase single blocks of vacant residential land must
build a dwelling within a period
of 24 months (previously, within
12 months)
The conditions previously relating to acquisitions by temporary residents of single blocks of vacant residential land no longer apply
Why were the changes made?
The government’s viewpoint is that it doesn't expect the changes to have any upward effect on house prices.
But they may assist somewhat
in the sale of new unit developments by reducing the compliance burden
on developers to get pre-approval
and lifting restrictions on the sale
of new units to non-residents –
such as the 50% quota and
considering units rented for 12
months as ‘new’ and therefore
available for sale to foreigners.
What effect might this have on Australia’s property market?
The recent changes to Australia’s Foreign Ownership Laws may well allow for an increase in the number of foreigners buying property in Australia.
In the current world economic climate, however, this may not be an automatic outcome and it's difficult to forecast whether the changes will, in fact, lead to an increase in the number of foreign purchasers.
The intention is to simplify the process and in doing so, streamline it, while reducing costs for foreign residents and foreign businesses
http://www.newzealandmortgages.co.uk/wp-content/uploads/Foreign Ownership Aust Apr 09.pdf
Apart from the fact the Australia is seen as a very attractive place to live.... we have a very large immigration program, 300,000 annual intake this year, and 430,000 foreign students some of whom may stay here.....add to that a very large number of immigrants who have taken up residence here over the last 60 or so years....and then they bring their extended families over....
since everything is so bright and rosy compared to the rest of the world....including property prices not falling over....it does not take much to wonder
just how many more will see Australia as even more attractive place to live....and want to purchase a home here
now back to the FIRB..............
the main changes are the removal of the 300,000 limit on student visa holders for established dwellings, temporary residents will not have to notify the FIRB for purchases..
and the 50% limit on new dwellings to foreign persons is removed........
plus applications to be streamlined and processed faster...
Foreign Ownership Laws are:
New dwellings
The existing requirement allows
only 50% of new dwellings to be
sold to foreign persons in an ‘off-the-plan’ situation. This was lifted, provided developers market locally
as well as overseas
Previously, a ‘new dwelling’ was defined as never previously occupied or sold. This now includes dwellings that were not sold by the developer but were rented out for no more than 12 months
Second-hand dwellings
Student visa holders residing in Australia are no longer subject to a $300,000 limit on the value of an established dwelling purchased as their principal place of residence
Temporary residents won't be required to notify the FIRB of proposed acquisitions of an established dwelling for their
own residence, any new dwellings and single blocks of vacant residential land
Foreign-owned companies can now purchase established dwellings for the use of their Australian-based staff provided that they sell or rent them if they're expected to remain vacant for more than six months
Vacant residential land
Foreign-owned companies, trust estates and non-resident foreign persons who purchase single blocks of vacant residential land must
build a dwelling within a period
of 24 months (previously, within
12 months)
The conditions previously relating to acquisitions by temporary residents of single blocks of vacant residential land no longer apply
Why were the changes made?
The government’s viewpoint is that it doesn't expect the changes to have any upward effect on house prices.
But they may assist somewhat
in the sale of new unit developments by reducing the compliance burden
on developers to get pre-approval
and lifting restrictions on the sale
of new units to non-residents –
such as the 50% quota and
considering units rented for 12
months as ‘new’ and therefore
available for sale to foreigners.
What effect might this have on Australia’s property market?
The recent changes to Australia’s Foreign Ownership Laws may well allow for an increase in the number of foreigners buying property in Australia.
In the current world economic climate, however, this may not be an automatic outcome and it's difficult to forecast whether the changes will, in fact, lead to an increase in the number of foreign purchasers.
The intention is to simplify the process and in doing so, streamline it, while reducing costs for foreign residents and foreign businesses
http://www.newzealandmortgages.co.uk/wp-content/uploads/Foreign Ownership Aust Apr 09.pdf