Over the years, the Australian government has made it much easier for foreign investors to buy land, residential or commercial property. All you need is the approval of the Foreign Investment Review Board (FIRB).
Our how-to guide on acquiring Australia property defines the processes you will need to go through should you be interested in investing down under.
But before you buy, familiarize yourself with the type of properties that are available in Australia.
Unlike residential, commercial property is a true investment in Australia.
You do not need FIRB approval should the commercial property you wish to purchase is below $5,000,000.00. However, you will not own the land upon which the property sits.
You will also have to pay council rates and land tax. The rates are different in each state and are calculated either from ownership and usage of the land or the value of the property.
However commercial yields can reach as high as 11% for investors provided they are willing to deal with the possible risk of oversupply.
All residential property acquisition must be approved by the FIRB. After approval, you can then proceed with the next step to purchase the property.
Should the FIRB suspect you of using residential property in Australia for speculation purposes, approval will not be given.
Residential property covers all types of homes; from houses to condominium estates.
With a current yield of 5.5% to 9% compared to the 3% to 4% in bank deposits, retail property can be attractive to foreign buyers.
The yield is dependent on the location, lease term and tenant agreement.
Foreigners looking to purchase a rural property or farm need not seek permission from the FIRB.
Rural businesses pertain to cattle rearing, dairy farms, poultry growers and much more. As Australia’s rural and organic growing businesses are essential to feeding the rest of Asia, rural property can be very attractive to foreign buyers.
A proper valuation done with the business, practices and workings of the farm or existing rural business will have to be made first.
The local solicitor or estate agent will help with this.
Disclaimer: The information is provided for general information only. PropertyGuru Pte Ltd makes no representations or warranties in relation to the information, including but not limited to any representation or warranty as to the fitness for any particular purpose of the information to the fullest extent permitted by law. While every effort has been made to ensure that the information provided in this article is accurate, reliable, and complete as of the time of writing, the information provided in this article should not be relied upon to make any financial, investment, real estate or legal decisions. Additionally, the information should not substitute advice from a trained professional who can take into account your personal facts and circumstances, and we accept no liability if you use the information to form decisions.