Investment properties in Australia for overseas residents migrating to Australia

International Investment Property

Foreign investment in Australian real estate has increased exponentially over time. There are a number of excellent reasons for this, not the least of which are:

our country's natural beauty;

a rich cultural heritage;

an excellent education system;

abundant employment and a vibrant economy;

steady property value appreciation; and

a government policy of friendly treatment of foreign investors.

The Australian government does desire to help with foreign real estate investment in Australia, but there are policies and procedures to follow. Those who wish to invest in Australian real estate and are not ordinarily resident in Australia will normally be required to make application to purchase real estate. It's not an unfriendly process, but it can be complex. You will want to work with experts in foreign real estate investment in Australia to accomplish your goals.

A walk in an Australian park is how you will feel with BFT Property escorting you through the process of Australian real estate investment. Every step will be sure-footed, and we will help you to overcome every hurdle. You will successfully realize your Australian real estate investment goals with BFT Property. Learning a bit about the process and the agencies responsible for oversight is quite helpful.

The FIRB, or the Foreign Investment Review Board is an advisory government agency. The board advises the Treasurer in areas of foreign real estate investment in Australia. The FIRB's main functions include:

examination of foreign interests' proposals for investment in Australian real estate;

advice to the government concerning these foreign interest proposals as they comply and relate to current Government policy;

to provide guidance if necessary to foreign interests in complying with policy and forms for Australian real estate investment; and

monitoring and assurance of compliance with policy.

Those investors wishing to purchase Australian real estate who are not residents, or those who do not have resident visas, will be considered foreign real estate investors for the purposes of enforcement of Australian Government real estate investment policy. The act also deals with foreign corporations. Those meeting these criteria will need to comply with the notification and application process:

a natural person not ordinarily resident in Australia;

a corporation in which a non-resident holds a 15% or more interest;

corporations in which 2 or more non-resident persons or foreign corporations hold a 40% or more aggregate interest;

a trustee of a trust estate in which a non-resident or foreign corporation holds a controlling interest; or

the trustee of a trust estate in which 2 or more persons, either non-residents or foreign corporations hold a substantial interest.

Residential Real Estate

For purposes of classification of Australian real estate, Residential real estate is considered as all homes, urban land, hobby farms and "rural residential blocks." Foreign persons or corporations must file notice and make application for the purchase of any residential real estate property in Australia.

Commercial Real Estate

Commercial properties, such as offices, restaurants, shops and factories, are not a part of the residential real estate category. Developed commercial property and vacant land for commercial development purposes compose the Commercial Real Estate category. Notification and approval is required for the purchase of:

vacant land, regardless of value;

an accomodation facility, regardless of value;

property being purchased by a foreign government or its agent, regardless of value;

developed commercial real estate with a total value of $50 million or more; and

if subject to heritage listing, commercial property valued at $5 million or more.

The Rural Land Category

The Rural Land category is land that is used wholly and exclusively for carrying on a substantial business of primary production. Primary production means production resulting directly from:

fishing operations;

the cultivation of land;

forest operations;

horticulture; or

the maintenance of animals or poultry for the purpose of selling them or their produce.

Urban land is that land that cannot be defined as rural land and would include "hobby farms" and "rural residential blocks." Purchase of rural or urban land by foreign persons or corporations would require notice and application as a foreign real estate investment.

Tourism Policy and Related Property Types

The Tourism policy is less restrictive and related to properties used for short-term tourism. These would include:

hotels and motels;

integrated tourism resorts;

time share schemes; and

designated strata titled hotels.

BFT Property, and its team of Australian real estate investment professionals is here to aid foreign investors in navigating the complex application process to invest in Australian real estate. Whether it is for a personal residence, vacation getaway, rental property, or a commercial enterprise, BFT Property is here to help.

"Building Future Trust" is where our name originates. It is trust in our expertise and ability to escort you through successful foreign real estate investment in Australia that will be the basis of our future long-term relationship.