Policies For Foreign Buyers in Purchasing A Property Such as A Real Estate Perth

Perth is one of the places in Australia that is favorable for property investment these days. Australians and foreigners alike are permitted to buy a property in Perth and even in other areas of the country. However, in terms of purchasing a property such as a Real Estate Perth, there are differences between the two. Foreigners that are planning to buy a real estate in Australia mostly need to seek the prior approval from the Foreign Investment Review Board (FIRB). But there are still opportunities for them to acquire a property such as a Real Estate Perth in Australia in situations where the approval is frequently granted and through certain exemptions from requiring approval. 

Though the Australian Government acknowledges the advantages of having foreign investments, its foreign policies have been designed to aid in the maintenance of the Australian property market stability. Therefore, the welfare of the Australian property investors still is given primary consideration. In an effort to enhance flexibility, there were changes made on the foreign investment that govern the purchase a property such as a Real Estate Perth recently that took effect last March 2009. Among the changes include:

• Temporary residents are currently permitted to purchase an established dwelling as their principal place of residency. Moreover, they can also purchase any new dwelling regardless of purpose without the need of government notification.

• Foreign companies can now purchase an existing Real Estate Perth or any other property for the utilization of their Australian-based staff provided that they rent or sell the property if it isvacant for more than half of the year.

• Foreign-owned companies, overseas trust estates as well as non-residential foreign persons purchasing vacant residential land require construction within two years of the purchase date which is more time as before as they only had 12 months.

• Accommodation facilities such as resorts and hotels are to be managed as commercial real estate and not residential real estate.

• Developers are currently not anymore limited to sell a maximum of 50% of one development to foreign buyers as long as they still market their product locally and overseas.

One thing is that non-residents of Australia are not permitted to purchase an established property straightforwardly for the purposes of investment. Therefore, residents in Australia are the ones granted to buy a property for investment purposes. However, foreign investors are granted to purchase established housings for redevelopment purposes that will result to an increase in the number of dwellings or turnan existing dwelling livable. For such purposes, they must notify the FIRB of their intentions and should process the redevelopment within 24 months of purchase.

They cannot rent out the existing dwelling prior to redevelopment. Thus, foreign buyers are only allowed to buy a property for justifiable purposes that will benefit the country and its people. Furthermore, non-residents can buy newly constructed dwellings as long as the property such as a Real Estate Perth has never been sold before and that there are no occupants for more than a year. Thus, a property must be unoccupied for several months before non-residents are allowed to purchase it.