Australian law imposes restrictions on foreigners in terms of purchasing residential property.
Under current law, non-resident foreigners can only invest in new housing, properties under construction, or vacant land for development.
They can only buy finished housing if they plan to demolish it and build a new one within four years. At the same time, to obtain permission, it is necessary that the redevelopment increases the housing stock.
In this way, the state limits the number of buyers on the market – and, therefore, restrains prices. At the same time, the country attracts investment and creates new jobs. In short, such a policy is good for everyone, except for those foreigners who would like to invest in the secondary market.
To conclude a transaction, foreigners must obtain approval from the Foreign Investment Review Board (FIRB). The application is reviewed in about 30 days. The permit, which remains valid for 12 months, indicates the specific address of the property. When buying from a developer, the construction company is responsible for obtaining the permit. Those who try to make a purchase without permission face severe penalties, including a fine of up to $135,000 or up to three years in prison.
Circumventing the law by purchasing through a company will also be difficult. In Australia, companies in which even 15% are owned by non-residents are considered foreign and are subject to the same restrictions as individuals.
