Jump to content

Changes for Temporary residents buying property/land


Recommended Posts

Hi

 

Thought I would post this as it will be relevant to quite a few people.

 

Below is taken from the FIRB website, probably the most appropriate point is that no FIRB approval will be required for temporary residents wishing to buy a residential home established or new from February 2009 (subject to amendments)

 

CHANGES TO FOREIGN INVESTMENT POLICY – RESIDENTIAL REAL ESTATE

 

FROM 18 DECEMBER 2008 THE POLICY HAS CHANGED AS FOLLOWS:

 

Temporary residents purchasing second hand dwellings

 

The definition of ‘temporary resident’ includes all foreign persons living in Australia on a valid visa, irrespective of the expiry date of that visa. This includes people on bridging visas pending the outcome of a substantive visa application (eg if they have applied for permanent residency) but, for example, does not include short-term visitors such as tourists, business people and those here for a medical procedure.

Foreign students resident in Australia are no longer subject to a $300,000 limit on the value of an established dwelling purchased as their principal place of residence.

Vacant residential land

 

Acquisitions by foreign-owned companies, trust estates and non-resident foreign persons of single blocks of vacant residential land are required to build a dwelling within a period of 24 months (previously within 12 months and development expenditure of at least 50 per cent of land cost).

The conditions previously applied to acquisitions by temporary residents of single blocks of vacant residential land no longer apply (such acquisitions will be exempt after the Regulations are amended in early 2009).

‘Single blocks’ of vacant land generally refers to a block of land on which only a single dwelling could be constructed. This does not include large tracts of land (eg for the purpose of subdivision) or multiple adjacent single blocks (eg to develop a multi-dwelling apartment complex) – additional development conditions may apply to such acquisitions.

New dwellings

 

The existing requirement that only 50 per cent of new dwellings can be sold to foreign persons on an ‘off the plan’ basis has been removed provided developers market locally as well as overseas. Vendors are no longer required to have concurrently developed a similar dwelling in order to be able to sell a new stand-alone dwelling to a foreign person. This will be reviewed after two years.

A ‘new dwelling’ is currently defined as having never been occupied or sold; this now includes dwellings that have not been sold but that have been rented out for no more than 12 months.

Foreign companies purchasing second hand dwellings

 

Foreign-owned companies can now purchase established dwellings for the use of their Australian based staff provided that they sell or rent the dwelling if it is expected to remain vacant for more than 6 months. There is no limit to the number of established dwellings which can be purchased, where required for employee accommodation.

Redevelopment of second hand dwellings

 

A proposed redevelopment must increase the number of dwellings and no rental income can be obtained from the existing dwelling prior to demolition. Such redevelopments are required to demolish the existing dwelling and commence construction of the new dwellings within 24 months in line with vacant land (previously 12 months), and development expenditure must be at least 50 per cent of the purchase price of the property.

FROM FEBRUARY 2009 – SUBJECT TO AMENDMENTS TO THE REGULATIONS:

 

Temporary residents’ exemption

 

Temporary residents will not be required to notify proposed acquisitions of:

PicExportError an established dwelling for their own residence (not for investment purposes);

PicExportError any new dwellings; and

PicExportError single blocks of vacant residential land (other acquisitions of vacant land will require notification and will normally be approved subject to development within 24 months).

 

The exemption will include acquisitions of property by temporary residents via their wholly owned trust or Australian incorporated company.

The existing notification requirements will continue to apply to non-residents, who must notify all proposed acquisitions of residential real estate.

Accommodation facilities

 

Accommodation facilities such as resorts and hotels will be treated as commercial real estate rather than residential real estate. Acquisitions of such facilities – or individual units within them – valued below the relevant developed commercial property threshold ($5 million for heritage listed property, $50 million for non-heritage listed property or $953 million for US investors) will be exempt from the FATA and will not require notification and approval.

 

Streamlined administrative procedures

 

Streamlined administrative procedures will be established for foreign-owned companies, trust estates and non-resident foreign persons to notify and receive approval for proposed acquisitions of vacant residential land and newly constructed dwellings. New application forms and statutory notices will be introduced to facilitate the streamlined procedures.

Developers will no longer be issued advance approval for sales of new dwellings to foreign persons – all non-resident foreign purchasers must submit individual applications (although developers may submit these on behalf of the purchaser/s). Temporary residents will be exempt and not required to notify.

Regards

Andy

Link to comment
Share on other sites

Guest Lulujim

Wow that's good news - now all we need is to be able to get the First Buyer's Grant etc - do you think this is the first stage in Temporary Visa holders being treated same as PR ones? :jiggy:

Link to comment
Share on other sites

Guest redfoxy
Hi

 

Thought I would post this as it will be relevant to quite a few people.

 

Below is taken from the FIRB website, probably the most appropriate point is that no FIRB approval will be required for temporary residents wishing to buy a residential home established or new from February 2009 (subject to amendments)

 

CHANGES TO FOREIGN INVESTMENT POLICY – RESIDENTIAL REAL ESTATE

 

FROM 18 DECEMBER 2008 THE POLICY HAS CHANGED AS FOLLOWS:

 

Temporary residents purchasing second hand dwellings

 

The definition of ‘temporary resident’ includes all foreign persons living in Australia on a valid visa, irrespective of the expiry date of that visa. This includes people on bridging visas pending the outcome of a substantive visa application (eg if they have applied for permanent residency) but, for example, does not include short-term visitors such as tourists, business people and those here for a medical procedure.

Foreign students resident in Australia are no longer subject to a $300,000 limit on the value of an established dwelling purchased as their principal place of residence.

Vacant residential land

 

Acquisitions by foreign-owned companies, trust estates and non-resident foreign persons of single blocks of vacant residential land are required to build a dwelling within a period of 24 months (previously within 12 months and development expenditure of at least 50 per cent of land cost).

The conditions previously applied to acquisitions by temporary residents of single blocks of vacant residential land no longer apply (such acquisitions will be exempt after the Regulations are amended in early 2009).

‘Single blocks’ of vacant land generally refers to a block of land on which only a single dwelling could be constructed. This does not include large tracts of land (eg for the purpose of subdivision) or multiple adjacent single blocks (eg to develop a multi-dwelling apartment complex) – additional development conditions may apply to such acquisitions.

New dwellings

 

The existing requirement that only 50 per cent of new dwellings can be sold to foreign persons on an ‘off the plan’ basis has been removed provided developers market locally as well as overseas. Vendors are no longer required to have concurrently developed a similar dwelling in order to be able to sell a new stand-alone dwelling to a foreign person. This will be reviewed after two years.

A ‘new dwelling’ is currently defined as having never been occupied or sold; this now includes dwellings that have not been sold but that have been rented out for no more than 12 months.

Foreign companies purchasing second hand dwellings

 

Foreign-owned companies can now purchase established dwellings for the use of their Australian based staff provided that they sell or rent the dwelling if it is expected to remain vacant for more than 6 months. There is no limit to the number of established dwellings which can be purchased, where required for employee accommodation.

Redevelopment of second hand dwellings

 

A proposed redevelopment must increase the number of dwellings and no rental income can be obtained from the existing dwelling prior to demolition. Such redevelopments are required to demolish the existing dwelling and commence construction of the new dwellings within 24 months in line with vacant land (previously 12 months), and development expenditure must be at least 50 per cent of the purchase price of the property.

FROM FEBRUARY 2009 – SUBJECT TO AMENDMENTS TO THE REGULATIONS:

 

Temporary residents’ exemption

 

Temporary residents will not be required to notify proposed acquisitions of:

PicExportError an established dwelling for their own residence (not for investment purposes);

PicExportError any new dwellings; and

PicExportError single blocks of vacant residential land (other acquisitions of vacant land will require notification and will normally be approved subject to development within 24 months).

 

The exemption will include acquisitions of property by temporary residents via their wholly owned trust or Australian incorporated company.

The existing notification requirements will continue to apply to non-residents, who must notify all proposed acquisitions of residential real estate.

Accommodation facilities

 

Accommodation facilities such as resorts and hotels will be treated as commercial real estate rather than residential real estate. Acquisitions of such facilities – or individual units within them – valued below the relevant developed commercial property threshold ($5 million for heritage listed property, $50 million for non-heritage listed property or $953 million for US investors) will be exempt from the FATA and will not require notification and approval.

 

 

Streamlined administrative procedures

 

Streamlined administrative procedures will be established for foreign-owned companies, trust estates and non-resident foreign persons to notify and receive approval for proposed acquisitions of vacant residential land and newly constructed dwellings. New application forms and statutory notices will be introduced to facilitate the streamlined procedures.

Developers will no longer be issued advance approval for sales of new dwellings to foreign persons – all non-resident foreign purchasers must submit individual applications (although developers may submit these on behalf of the purchaser/s). Temporary residents will be exempt and not required to notify.

 

Regards

 

Andy

 

 

Andy,

 

Thanks for that info. Could you please make it clear and simple the procedure and rules about getting the first time buyers grant ? if a person is here on a SIR 495 temp visa can they purchase during the second year and then once PR is acheived claim the furst time buyers grant back ??

 

Thanks Lynne

Link to comment
Share on other sites

Hi Lynne

 

As long as you apply within 12 months of entering in to the contract and you are PR at time of applying for the Grants then yes.

 

Also the amount that you get is based on what the Grant amounts were when entering into the contract.

 

So for example.

 

If a temp visa holder purchased a property in January 2009 they then attained PR status in September 2009 they could apply for the Grants as it is within 12 months.

 

In Sep 2009 if the Grants have reduced back to pre Oct 2008 i.e $7,000 they would still be entitled to the Grant amount as was at January 2009 date of contract i.e $14k est or $21k new.

 

So effectively eligibility can be backdated for 12 months and the amount the grant is based on is also backdated to contract date.

 

Andy

Link to comment
Share on other sites

Guest redfoxy
Hi Lynne

 

As long as you apply within 12 months of entering in to the contract and you are PR at time of applying for the Grants then yes.

 

Also the amount that you get is based on what the Grant amounts were when entering into the contract.

 

So for example.

 

If a temp visa holder purchased a property in January 2009 they then attained PR status in September 2009 they could apply for the Grants as it is within 12 months.

 

In Sep 2009 if the Grants have reduced back to pre Oct 2008 i.e $7,000 they would still be entitled to the Grant amount as was at January 2008 date of contract i.e $14k est or $21k new.

 

So effectively eligibility can be backdated for 12 months and the amount the grant is based on is also backdated to contract date.

 

Andy

 

Thank you for that Andy,

 

So great care needs to be taken with the time frames of entering into contracts and the soonest date at which we can apply for PR.

 

Thanks for you help

 

Lynne

Link to comment
Share on other sites

  • 4 weeks later...
Guest covfan71
Thank you for that Andy,

 

So great care needs to be taken with the time frames of entering into contracts and the soonest date at which we can apply for PR.

 

Thanks for you help

 

Lynne

 

So basically we need to wait until the second year to purchase a house in order to claim the grant back.

Link to comment
Share on other sites

Guest caoimhe
So basically we need to wait until the second year to purchase a house in order to claim the grant back.

 

yep thats right and I only know this cause I spoke to Andrew on the phone and clarified this.

Problem is do all of us on a temp visa want to hold out to get the grant after being here a year or buy now, if we buy now we may make that noney in equity in a year, Murphy's law as we say Ireland:biglaugh:

Link to comment
Share on other sites

Guest caoimhe
Does anybody know if there is any change on the mortgages granted for 475 visa holders, ie, can we still only get a 70% mortgage??

PM Andrew Williams he can really fill you in on the differences between UK and OZ

Link to comment
Share on other sites

Guest covfan71
yep thats right and I only know this cause I spoke to Andrew on the phone and clarified this.

Problem is do all of us on a temp visa want to hold out to get the grant after being here a year or buy now, if we buy now we may make that noney in equity in a year, Murphy's law as we say Ireland:biglaugh:

 

Exactly, it will probably cost you about $15k in rent anyway for the first year.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Use