Important Regulations Necessary to Follow While Purchasing Residential Property in Australia
Category: Businessby Zaki Ameer
In the recent few years, the Australian residential property market is grabbing the eyeballs of savvy investors around the world. Favorable government policies and property market remaining unaffected with downturn are two factors making the foreign land a safe destination for property investment. So, as a non-resident, if you are investing in residential property market of the country, you need to consider following factors.
FIRB Approval is Mandatory - If any non-resident wants to purchase residential property anywhere in Australia, he needs to seek approval from Foreign Investment Review Board (FIRB) and pay application fee as well. Any individual or companies breaching the rule may need to pay hefty fine amount, three years imprisonment or both also. The FIRB generally approves the application within 30-40 days of applying and disclose all important conditions necessary to follow while making property purchase.
Home Loan Restrictions – If you are interested in taking a home loan, then it is necessary to armed with the fact that the finance companies generally offer 80% of the property’s value on loan-to-value basis as a loan amount. Moreover, there are set of documents which a person needs to submit with the financing firm supported by his income proof.
Recording Property on ATO Land – Every non-resident is under legal obligation to inform the ATO Land about the purchase of land and notify the same for water registration within 30 days of the purchase. Once the property is registered successfully, a person gets ATO Land Registration number which is required for completing other legal formalities.
It is a wise decision to hire professional property investment and management company like Dream Design Property before investing in Australian residential real estate market. The clients need to pay small feel for the services but they get assurance of making right investment in the foreign land by complying with all legal rules and formalities.
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