Can Foreigners Buy Property in Australia?

Ideally, you need to be a permanent resident or a citizen to buy property anywhere in Australia. However, there are many available home loans that require you to be an Aussie. But do not fret, if you are a foreigner, you can still make a purchase. The property must be categorized as an investment and you would need approval.

Let us take a closer look.

How to Buy a Property in Australia?

First of all, as a foreigner you will have to submit an application to the Foreign Investment Review Board (FIRB), which is in charge of assessing foreigners who want to buy or invest in real estate in Australia.

If your request gets approved for an investment property, there are a couple of other things that you will have to keep in mind.

• It must be a new property or vacant land to build a new property.
• The investment property cannot be categorized as an established dwelling.

Now, if you do buy an establishment dwelling you are required to live in it and then sell it once you do not live there.

Fees for Foreigners Buying Property

The FIRB charges an application fee, an amount that depends on the value of the property you plan to buy. So, this figure can vary but if you are purchasing a property under $1m, you might look somewhere in the vicinity of a $6,000 fee, while a property priced at say, $3m is going to demand a fee of $38,000. You will have to double-check this before making such a big purchase — the FIRB has some guidance on it. Click here to know about the process in detail.

If you are not an outsider or a foreigner, here are some basic steps that you will have to go through to buy a land in Australia.

Finding that perfect block of land or home is an exciting feeling so we would never want your enthusiasm to get dampened just by the thought of the sales process.

We have outlined all the steps that you would require to go through to secure your very own place and of course, Raine and Horne experts in Land Victoria will be available to help you throughout the process.

1. Get Your Finance Pre-Approval

Getting pre-approval for your home loan is an important step in the home/land buying journey as it allows you to search for your new block or home with confidence by being within the budget. Pre-approval is an indication, it is not a guarantee from the bank about how much you can borrow.

2. Sign a Contract of Sales

This is a written agreement which outlines the terms and conditions of the sale, including the price you offer and the settlement period. It will either be a conditional offer that contains specific conditions on which the sale relies or it would be an unconditional offer in which the purchaser has funds and can pay immediately.

3. Exchange Contracts

Once the conditions and prices are agreed upon, both the purchaser and seller sign the contract of sale document.

4. Pay a Deposit

This is held in a trust account and cannot be accessed by the developer until settlement takes place.

5. Find a Settlement Agent

You will have to appoint a settlement agent or a solicitor who will handle the paperwork involved in the process. At this point, you will be clarifying special terms and conditions of the sale.

6. Finalize Your Loan Arrangements

You will be required to finalize and sign all your mortgage documents. Your lender or mortgage broker will help you in the entire process.

7. Sign a Transfer of Land Document

After exchanging the contract, you will be asked to sign a transfer of land document. The document will then be registered with the Land Titles Office / Register of Titles so the property can be transferred into your name later on.

8. Register the Land Title

This is an official record of ownership of the land. This is kept by the Land Titles Office or Registrar of Titles. Once the purchase is officially registered, final settlement happens, your mortgage gets active and then the property is all yours!

Is Land Buying in Australia a Good Investment?

When you spend on resources, it is only natural to expect a significant return on investment. While a vacant lot does not have any structures it can generate cash for you, it is not completely dead.

Land is one of the few categories of real estate which does not depreciate. Your land may appreciate in value even if you do not touch it, leave it alone, depending on the location.

Investing in unoccupied land provides a lot of advantages. Vacant land can be a profitable investment opportunity whether you are a land developer or a private individual looking to secure a residential property early in life.

Reasons You Should Invest in Land

• When you buy land for investment purposes you gain proper ownership of the property. You might not need a mortgage or loan because undeveloped land is less expensive than developed land. Once the seller transfers the title to your name, the land becomes yours right away.
• You might face a bit of competition because developed land is more popular than undeveloped land. Moreover, in no time, you will be able to locate land that suits your requirements.
• The land is a low-cost, long-term investment which guarantees a large return. It does not necessitate any hardcore upkeep. You can leave it as it is for a long-time span and still see its worth rising dramatically as the surrounding region develops.
• You can buy land now and sell it later without ever seeing it in person because it does not even require any staging to appeal to the buyers.
• You do not need to hire a guard or install a security system because there is nothing on your property to vandalize or steal.
• While making such a huge investment, ensure that no one dumps trash or digs up your land, which is quite rare in a residential area.

Just because vacant land sellers are generally more motivated, buying land for investment is easier than buying a house or an apartment.

For any doubts, or for more queries, reach out to our team of experts at Raine and Horne, Land Victoria.