Swerv-o

Hi all,

I was talking to my mother last night and she was telling me that some friends of hers were planning to move to Australia, and that they had been told they would not be able to buy an existing house, and that they must either buy a brand new, unlived in house or have a new house built for them.

Now, I don't know anything about their Visa status, if any, but do these sort of restrictions exist for PR visa holders like myself? I was planning to buy an existing house, as I really don't want the grief of having to have one built.

Any clues?

S

Coulterk

If you have PR then there are no restrictions, so you do not need to worry.

If you are on some form of temp visa then you need to get permission for anything other than a new house or land to build on. So if you want to buy a house that is 5 years old and you are on a temp visa, you need to apply to the Foreign Investment Review Board for approval - http://www.firb.gov.au

ROBnCAZ

I'm no expert but I think this only applies if you intend to 'buy to rent'. An anwful lot of the agenst we spoke to *automatically* assumed that was what WE wanted to do!

Please don't quote me on this and I'm sure more accurate answers will be forthcoming!

ABCDiamond

Property Buying Restrictions:

Australian Citizen or Permanent Resident - No Restrictions

Temporary Resident, Retiree or Student - Can buy new property without restriction or an established property provided it is your residence and it is sold when your visa expires. Consent of the FIRB is normally required. (exceptions apply for some spouse / de facto partner.)

Foreign National or Foreign Corporation - Can buy new property. Can buy vacant land as long as building commences within 12 months of purchase. Can buy an established property only if an additional amount of no less than 50% of the original property cost is spent on improvements or additional construction. Can buy up to 50% of new projects or apartments, Consent of the FIRB is required.

FIRB = Foreign Investment Review Board - http://www.firb.gov.au/
Interesting Q&A fact sheet: - http://www.firb.gov.au/content/faq.asp

The FIRB FAQ site states: (as at April 2005)

Q6. I am a foreign person living in Australia on a long stay, temporary resident visa. Do I need approval to buy an established house to live in?

A. Yes. Foreign persons temporarily resident in Australia for a period exceeding 12 months from the time of application for approval are eligible under foreign investment policy to acquire residential real estate. If the property being purchased is an established dwelling, that is, one that has been previously occupied or sold, foreign investment approval is still available provided that the dwelling is to be used as the person’s principal place of residence, not for rental purposes and the property must be sold when their visa expires or they cease to reside in Australia.

Q18. I am an Australian citizen, but my spouse / de facto partner is a foreign person, do we require permission to purchase a house?

A. Australian citizens and their foreign spouses (which include de facto partners) are exempt from notification as long as the property is zoned residential and you are buying the property as joint tenants.

Swerv-o

Phew!

Thanks for that folks...

S