Australia

Australia needs no introduction. The appeal across all aspects of lifestyle, natural beauty, economy, culture and modern infrastructure are known worldwide. Homeownership in Australia stands at around 70% and, like many other popular destinations, demand for housing is increasing. Property is seen as a safe investment, in particular for long-term capital growth.

Ever popular for tourism and migration in particular amongst Brits, the signing of a new Free Trade Agreement between UK and Australia in 2021 intends in part to increase travel and work opportunities for people aged 18-35 years. However, foreign investment in property is less straightforward. Due to the complexities of the regulations, we strongly advise you consult immigration, legal and taxation specialists.

Non-resident and temporary residents legally require pre-approval from FIRB (Foreign Investment Review Board) in order to buy property in Australia. Conditions and charges apply. Foreigners can only buy new, off plan or land that is to be developed. There is a Foreign Citizen Stamp Duty charge on top of the regular stamp duty. This may apply to non-resident nationals too. If you require a mortgage, this may be difficult for foreign non-residents and terms and conditions may apply, including higher fees, interest rates and lower loan-to-value options than permanent residents or citizens. Check options with your financial specialist or worldwide bank.

Estate agents in Australia are licensed and a buying agent can be a worthwhile investment to act for you on the ground and help you through the process, if you are looking from long distance. Good property does not tend to sit on the market for long.

Buying costs are relatively low at around 7% on top of sale price, with variation between States. States may vary a little in the sale process. We advise your lawyer and finances are prepared in advance, with deposits around 10%. Typically it can take six weeks from signing exchange agreement to completion, although auction sales are more popular in Australia too.

For non-residents, income earned in country needs to be declared in annual tax submissions and foreigners face higher taxes. In Australia, there is a Ghost Tax if a property is vacant or let at least six months of the year.

Schemes are available offering visas in exchange for types of investment, but this does not include property. Visas related to retirement have strict terms and conditions, including long-term investment criteria.

Our affiliate partners have offices throughout Australia, please do get in touch with us and we can connect you.

Photo credits © RudyBalasko via canva.com © horstmueller_HH via canva.com © zstockphotos via canva.com