Jb90896

Hi- we are exploring different options to be able to spend more time with our son who lives in Sydney. Have been considering CPV but now thinking about spending six months in UK & six months in Oz.
Does anyone know if we would be able to buy property in Oz as UK citizens? Thanks

Alfresco

I think you will only be able to buy an established property. Not new builds or off-plan.

I haven't looked lately. Maybe do a quick Google.

Jb90896

thanks for reply, have been doing a bit more research since my post. Need to get approval from Foreign Investors Review Board first.

Kiwipaul

Last time I heard it was the opposite, you could only buy land and build or new property. The reasoning was to encourage the building of new houses.

But yes you do need Foreign Investors Review Board approval, but I believe for most it's just a formality, maybe other who have done it can comment.

Craig Vaughan

HI,
The rules and policy is essentially as follows, and applies to those who do not have Australian citizenship or Permanent Residency.

Foreignors can purchase any property in Australia, new or existing (established) providing they reside in that property as their principle place of residence. If they move back home or no longer live in the property they are required to sell the property. That is, you are not able to hold investment property in Australia whilst on a visa other than a permanent resident visa.

The exception to this is if the property is brand new, and never lived in before. For example, an off the plan apartment or house and land package. In this situation, the govt policy is that this purchase is creating jobs (in the building sector) and adding to the housing market and as such, are quite happy for foreignors to buy these properties either as principle place of residence or investment. No requirement to sell should you move out or decide to rent it out.

In your situation, given you want to live 6 months here, 6 months in Uk, you would need to buy something brand new or, you would have to sell the property when you move back to the UK for 6 months.

Hope this helps.

Jb90896

Thanks so much for your expert reply, comprehensive and very easy to understand. Has saved hours of Internet trawling. This forum is ace - just being able to get down in words the thoughts that are running through my head is great

Alfresco

Thank you.

sonlymewalter

Hi you mention initially applying for a contributory parent visa "but now thinking of 6 months in UK and aus" does this mean you're not applying for this visa now? Reason I ask is it sounds like you've ruled it out in which case I'm not sure you can reside in Aus unless you've got a visa and even less sure your able to get a house here unless its your primary residence which you'll need a visa for I presume?

Maybe you can confirm you'll be getting the contributory parent visa? Good luck mate

Jb90896

Thanks for reply, we are trying to examine all options. cPV is quite expensive ( nearly £60,000 for two of us) which is a big chunk of retirement funds so need to look if there are alternatives. So far it's not looking too promising on any of the options . Maybe a campervan for extended visits is the way to go!

RedDragon2008

I would talk with the FIRB directly

There are loads of Hong Kong Parents doing what you wish to do

6 months in Melbourne 6 months in Hong Kong

Returning to the UK does not remove you from having a principal place of residence in Australia (so long as you dont try renting it out during your abscence)

Kiwipaul

What about the condition whereby you can rent out your PPOR for 6 years without their being any CGT liability. So long as they claim their Oz house as their PPOR, they should be able to rent it out whilst away for the 6 months.
They just have to say they are going on holiday (for 6 months) and rent whilst away.

RedDragon2008

2 different issues

FIRB has nothing to do with CGT

OzTennis

I know of one estate agency which handles on its rent books for Chinese owners - 3,000 newly built properties in Melbourne!! (Sanctuary Lakes, Point Cook, CBD, Docklands, Southbank etc). The owners don't reside in them so different to this case but obviously it is possible for people living overseas to buy property and it would seem they are being steered in the direction of new builds by FIRB. Another agent I know had a guy from China phone him up to say he was wishing to build up a portfolio of 300 properties and wanted him to identify suitable houses for him - did the same with other agents.

IvanM

Bubble bubble toil and trouble

Jb90896

Seems like we'll need to consider visas again - the possibility of renting out a property will need to be explored. Portfolio of 300 properties! No wonder the prices of new apartments are sky high with demand from foreign investors like this.
in the UK, buy to let investors also pushed up the property prices then the bubble burst and many buyers were in negative equity.