Savills is a worldwide organisation.
Truly worldwide. We have more than 180 offices and over 18,000 employees throughout the Americas, Europe, Asia Pacific, Africa and the Middle East, and we're listed on the London Stock Exchange.
In other words, we understand international real estate. More importantly, we understand the needs of international buyers.
Buying Into the Australian Market
If you're an international buyer, the Australian property market is an inviting prospect, and with good justification. Historically, country-wide, real estate has consistently performed well. Yet it is still far from full maturity, so exciting growth is virtually guaranteed.
Still, expert local knowledge is essential. Whether you're buying for investment or lifestyle, on-the-ground expertise will help you identify, not just the fastest growing regions, but the best street-level opportunities.
What's more, buying internationally presents its own legal and logistical challenges. Australia is no exception. Following is some information on buying property in Australia.
The Legalities
If you're investing in property – whether residential or commercial – your purchase must be approved by the Australian Government's Foreign Investment Review Board (FIRB), before it can proceed.
Australia is lucky enough to possess a rich, vibrant, tolerant and diverse culture, and a burgeoning economy. The Australian Government recognises that offshore investment plays a big part in both. So it has established the FIRB to encourage investment and ensure that all investments are consistent with the needs of the Australian community (including those of existing foreign investors).
The Australian Government also controls who is allowed to provide services in the Investment and Property Industry (e.g. real estate agents and financial advisers).
What is the Definition of a Foreign Investor?
If EITHER of the below descriptions fits your situation, you're legally considered a foreign investor. If your purchase is also legally considered a foreign investment, it will need to be approved by the FIRB.
- A person not ordinarily resident in Australia; OR
- A corporation, business or trust in which a foreigner and any associates have 15% or more ownership, or in which several foreigners have 40% or more aggregate of the ownership.
What Constitutes a Foreign Investment?
If ANY one of the below descriptions fits your purchase AND you're legally a foreign investor (see above), your purchase will be considered a foreign investment, and it will need to be approved by the FIRB.
- Acquisition of developed commercial real estate valued at AUD$5 million or more; OR
- Acquisition of urban real estate - irrespective of size; OR
- Acquisition of urban real estate - irrespective of size - unless exempt under regulations.
What Investments Are Usually Approved?
Approval will normally be granted if:
- you want to buy land and develop it within 12 months (unless it is contrary to national interest); OR
- you want to buy vacant residential land and commence construction of a dwelling 12 months; OR
- you want to buy home units or townhouses off the plan, under construction or newly constructed (or leased for twelve months after completion), OR
- you are a foreign company and you want to buy residences in Australia for your senior executives; OR
- you are a foreign national, temporarily resident in Australia for more than 12 months, and you want to buy a property for your principal place of residence, and you will sell the property again when you cease to reside in Australia; OR
- you are a foreign national purchasing residential real estate as joint tenant with an Australian spouse.
Australian Expatriates
If you're an Australian citizen living abroad, you can purchase residential real estate without approval from the FIRB, so long as you hold a permanent Australian visa or you're entitled to hold a 'special category' visa.
For more information, please contact FIRB directly.
Buying Checklist
Before buying property in Australia, we advise you to:
- find a reputable, Government-approved international property specialist
- research the Australian property market
- ensure you have the correct legal, finance and taxation advice for your situation
- ensure the property has FIRB approval, or meets the approval requirements
More questions? Call your local sales executive now.