Foreign Real Estate News

AUSTRALIAN HOUSE BUYING LAW

Posted on by Management

The Australian home buying law allows foreigners to buy Australian homes, as long as they meet the conditions. Conditions for buying a home in Australia include:  

RequestHomebuyers in Australia
Foreigners who are temporarily residing in Australia (visa period is 12 consecutive months)Foreigners who do not hold an Australian visa
Approval from  FIRB  (Australia’s Foreign Investment Review Board)Must have
Opportunity to buy a second-hand home in Australia (existing homes)
  • Up to 1 unit can be purchased
  • Purpose: residence.
  • Cannot rent and invest.
  • When discontinuing use: must be sold within 3 months.
Not purchased.
Opportunity to buy a newly built houseAllowed to buy.

  • For the purpose of residence: unlimited number.
  • For the purpose of redevelopment:
    • Quantity: 1 unit.
    • Condition: redevelopment helps to increase housing supply.
    • Not to be leased prior to redevelopment.
    • Project completion time: within 4 years.
Opportunity to buy vacant landPurchased for residential construction, if:

  • The project is completed within 4 years from the date of approval.
  • Commitment to submit proof of completed project on time within 30 days (since the project is returned).

As a foreigner who has not yet settled in Australia, you can only  buy a house when you meet the above conditions . If you do not fully understand, please  schedule a consultation with VEM  for answers!

In case you are already an Australian permanent resident or citizen, you can also schedule a consultation with VEM to make buying a  home in Australia  more convenient!

BENEFITS WHEN BUYING HOUSE IN AUSTRALIA

For foreigners residing in Australia,  buying a house in Australia  helps them have their own house to reside in (and do business if eligible). For foreigners  who buy houses in Australia  without an Australian visa, if they apply for a visa later, they will have many advantages, such as:

  • Have your own house in Australia to reside.
  • You can invest in real estate if you meet the conditions.
  • Favorable financial proof when children study in Australia.
  • Availability of real estate in Australia when applying for  an Australian investment visa .
  • Earn migration points when you move from temporary to permanent residency in Australia.

Once you understand the attractive group of benefits from buying  a home in Australia  and decide to invest, please continue reading the next part of the article  to know how to buy a home in Australia.

TYPES OF FEES TO PAY WHEN BUYING HOUSE IN AUSTRALIA

Before buying an Australian home,  you must do your research to be sure  of all the fees and taxes on buying a home in Australia.  VEM lists for your convenience:

  • License fee from FIRB
  • Stamp duty
  • Transfer fees and legal fees
  • Construction inspection fee
  • Mortgage registration fee
  • Loan application fee
  • Mortgage insurance fee
Fees to pay when buying a house in Australia

AUSTRALIAN HOUSE BUYING PROCESS IN 2023

Understanding  the process of buying a home in Australia  now will make  your process of buying property in Australia  go more smoothly. This procedure consists of 9 steps:

  • Step 1: Determine a budget to buy a house in Australia.
  • Step 2: Search and get a loan (if needed).
  • Step 3: Apply for a mortgage.
  • Step 4: Confirm with FIRB of eligibility.
  • Step 5: Search and buy  a home in Australia .
  • Step 6: Get formal mortgage approval.
  • Step 7: Get FIRB approval to buy a home in Australia (if needed).
  • Step 8: Send a copy of the transaction contract to the FIRB for approval.
  • Step 9: Pay the fee

The way to successfully buy a home in Australia  is to complete the steps above. If you are still unsure about the conditions to buy a home in Australia, schedule a consultation with a VEM specialist!

FIRB APPROVAL APPLICATION PROCESS

When  buying a home in Australia  as a non-Australian foreigner, you must obtain approval from the FIRB. The process of working with this agency goes as follows:

  • Step 1: Go to FIRB’s website and choose  to accept registration conditions .
  • Step 2: Fill in all required information correctly (type of property to be purchased, address, personal information, …)
  • Step 3: Read all terms carefully, sign to confirm acceptance of conditions to buy a house in Australia.
  • Step 4: Submit the application and pay the prescribed fee.
  • Step 5: Receive results from FIRB via email (from 14-30 days from registration).
FIRB Approval Process

To get your application approved by the FIRB soon,  you must provide information as detailed and clear as possible. If you travel with VEM, you will be guided by an experienced investment consultant through the process of  buying a home in Australia,  including applying to the FIRB!

 

NOTES WHEN BUYING A HOUSE IN AUSTRALIA

If you are  buying a home for the first time in Australia,  you should consider the following factors to choose the ideal home for your family:

  • Location of the house: choose a house with a good location so that the value of the house is less affected by the real estate market.
    • Ambience: research the area around the house before buying to ensure security and neighbours.
    • Infrastructure: accessibility to basic infrastructure, such as traffic systems, green spaces, water sources, internet, telephones, street lights, etc.
  • House price market
  • Cost and standard of living

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