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:
- Seek FIRB Approval: Ensure that you obtain FIRB approval before proceeding with any property purchase.
- 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.
- 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!