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Can foreigners buy second-hand property in Australia?

Yes, foreigners can buy second-hand property in Australia, but there are certain restrictions and requirements they need to comply with. Here's an overview of the important aspects:

1. Foreign Investment Review Board (FIRB) Approval:

Foreigners generally need approval from the Foreign Investment Review Board (FIRB) before purchasing property in Australia. The FIRB reviews applications to ensure that the investment is in the national interest.

2. Types of Properties:

  • New Dwellings: Foreign investors are encouraged to buy new dwellings. These properties do not require FIRB approval if they are purchased from a developer who has obtained pre-approval for the development.
  • Established Dwellings: Buying established (second-hand) dwellings is usually more restricted. Generally, foreign investors can only buy an established dwelling if it is to be used as their residence while they are living in Australia and must be sold when they leave. Alternatively, they may purchase an established dwelling for redevelopment, which must increase Australia's housing stock (e.g., replacing a single dwelling with multiple dwellings).

3. Temporary Residents:

Temporary residents (those who hold a visa permitting them to live in Australia for more than 12 months) can purchase an established dwelling for use as their residence while they live in Australia. They must sell the property when they leave the country.

4. Fees:

FIRB application fees apply and vary depending on the value of the property.

5. Penalties:

There are significant penalties for not complying with FIRB rules, including forced sale of the property and financial penalties.

Key Legal Concepts:

  • Foreign Investment Review Board (FIRB): A government body that reviews foreign investment proposals.
  • Established Dwelling: A property that has been previously owned and occupied.
  • New Dwelling: A property that has not been previously sold or occupied, or is part of a development project.

Recommendations:

  1. Seek FIRB Approval: Ensure that you obtain FIRB approval before proceeding with any property purchase.
  2. Consult a Lawyer: It's advisable to consult with a property lawyer who specializes in foreign investments to navigate the legal requirements and ensure compliance.
  3. Understand the Market: Research the Australian property market and be aware of any local or state-specific regulations that might affect your purchase.

If you have any more specific questions or need further assistance, feel free to ask!

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Law Firm's Insights
28 September 2020
Queensland
Thomson Geer
WILLIAMS
Highlights
Defective Work [20] The contract provides that any “defective work” will be corrected by the party incurring the cost and without any deduction from the amount payable to the other party. [21] The relevant provisions are as follows:“1. If either party incurs costs in connexion with, or in an attempt to remedy, any defect in the work performed by the other party, then without prejudice to any other rights it may have, that party shall be entitled to recover those costs from the other party without any deduction therefrom. 2. If any defect in the work is not remedied within a reasonable time after notification by either party of its intention to do so, then that party shall be entitled, where such delay has caused loss or damage, to have that loss or damage fully compensated by the other party.” Defective Work [22] The contract also provides that where “defective work” is carried out by either party then that party is not entitled to recover for such defective work any costs whatsoever including but not limited to wages, materials or damages whatsoever. [24] The issue in dispute is whether the installation of an air conditioning system constituted defective work within the meaning of clause 1 of the General Conditions of the Contract.Mechanical Services Specification and Mechanical Services Preliminary Design Drawings [25] The Mechanical Services Specification and Mechanical Services Preliminary Design Drawings were prepared by Pro-Invest and provide specific requirements for an air conditioning system to be installed at the Spring Hill Hotel. [26] It is clear from these documents that an air conditioning system was required and that failure to install such a system would result in a breach of contract. [27] Pro-Invest contends that because the air conditioning system was not installed according to specifications provided in the Mechanical Services Specification and Mechanical Services Preliminary Design Drawings, this constituted defective work within the meaning of clause 1 of the General Conditions of the Contract. Defective Work [28] Pro-Invest argues that because there was a failure to install an air conditioning system according to specifications provided in the Mechanical Services Specification and Mechanical Services Preliminary Design Drawings, this constituted defective work within the meaning of clause 1 of the General Conditions of the Contract. Air Conditioning System [29] It is also arguable that because there was a failure to install an air conditioning system according to specifications provided inthe Mechanical Services Specification and Mechanical Services Preliminary
Judgment
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