Non Resident Buyer | Loan Solutions

What you need to consider as a non-resident buyer while purchasing a property in Australia

If you are a non-resident buyer planning to buy a property in Australia, you will need to consider certain things. Here, we will take a look at those in detail stepwise. You will need to go through all the points mentioned here since this will help you avoid complications.

Approval of the Foreign Investment Review Board (FIRB) is Necessary

The approval of the FIRB is necessary for both temporary and foreign investors. So, if you are a non-resident property buyer, you will need to consider FIRB first since This is an Australian government department that examines the applications from foreigners who would like to invest or purchase a home in Australia.

What To Consider if You are a Foreign Investor?

As a foreign investor, you will to consider a few points that include:

The property that you are investing in has to be new property. It can also be a vacant land where you can build a new property.
You will not be able to purchase an established dwelling as an investment property.
As a foreign investor, you can buy a new property in your name and rent it out to your child on a temporary visa.

Now that you know the rules, let us see the points that a temporary resident needs to consider.

What To Consider if You are a Temporary Resident?

If you are on a temporary visa such as a 491 skilled immigrant visa or spouse visa, you will need to take a look at a few things. These are

As per rules, you will only be able to purchase one established dwelling that you can use solely for living. But you will need to sell the same if you do not live there anymore.
You can buy an investment property provided it is a new property. Or, it can be a vacant land where the new property will be built.
You will not require an FIRB approval if you’re investing in a property with an Australian citizen. If you are joint tenants, such as you are in a spousal relationship, you need not require an approval. But if you are business partners, mother/father and child, siblings, friends or relatives, you will need to apply for the approval.

Application fees Charged by the FIRB

The application fee charged by the FIRB is as follows:

Value of the residential property or land that you want to purchase	Fee payable
Less than $75,000	$4,000
Between $75,000 – $1,000,000	$13,200
Between $1,000,001 – $2,000,000	$26,400
Between $2,000,001 – $3,000,000	$52,800
Between $3,000,001 – $4,000,000	$79,200
Between $4,000,001 – $5,000,000	$105,600
Between $5,000,001 – $6,000,000	$132,000
Between $6,000,001 – $7,000,000	$158,400
Between $7,000,001 – $8,000,000	$184,800
Between $8,000,001 – $9,000,000	$211,200
Between $9,000,001 – $10,000,000	$237,600

The application fee was not charged up until mid-2015. But now, FIRB charges an application fee to all foreign investors who want to purchase a property or land in Australia.

However, if you’re an Australian citizen, an NZ citizen. Or a Permanent Resident, you need not pay the application fee. Depending on the value of the land or the residential property, the fees can vary.

Typically, a land that you want to buy for residential purposes will cost less than the ones that you want to use for business, developing farmland or a commercial property.

To learn more about the fees, you can refer to the application fees page of the official FIRB.

Lodging the FIRB Application

To lodge your application, fill out the Australian Tax Office’s Residential Real Estate Application Form.

There, you’ll need to provide contact details such as the property address and your legal name. After that, you will need to pay the required FIRB approval fee.

You need to have your passport and Australian visa (if applicable) with you since you will need to provide the information.

You can leave the title details of your property blank if you don’t know the details. If it’s a new property, they might not have title details which you can get within a few weeks after you get the approval.