International investment is possible with the right preparation and research
Thinking about entering a foreign property market? You’ll have to consider a whole other set of rules, regulations and risks.
Not an Australian resident but want to own a little piece of the country down under? There are a couple of rules to consider. Australian rules for foreign property investment are based on:
You can buy one existing dwelling to live in as a temporary resident. Beyond that you can only buy new dwellings, or vacant land with plans to build on it for investment purposes. This is supposed to encourage more housing to be built. Temporary residents can’t invest in established dwellings.
If you’re a non-resident (also known as a foreign resident) you can only buy in Australia if your purchase adds to the local property market. So you can buy new dwellings, off-the-plan properties that are under construction or to be built, or land with plans to develop and build.
As a foreign resident you can’t buy existing properties unless you demolish an established dwelling with a view to redevelop the land within four years of approval. Development applications are often subject to conditions such as deadlines in which construction must begin.
Investing overseas presents exciting opportunities. It could be a way to diversify your portfolio, invest with lower upfront costs or achieve tax benefits. It could also help you generate cash flow in another currency and lift your chances of qualifying for residency.
But investing in property overseas isn’t for everyone. It’s essential to do your research before taking the plunge as financing the loan requires research and expert advice.
It’s a good idea to understand the economic outlook and housing market in the country you’re interested in. Also, explore the property market and rental prices in recent years. And look into any government regulations or tax implications that apply to your potential investment. It’s essential to get professional advice to help overcome any lack of local knowledge and to understand potential risks.
You’ll still need to shop around when hunting for the right loan. Speak to an Aussie Broker to find out how they can help.