Frequently Asked Questions About Overseas Buyers Purchasing Property in Australia
1. Can overseas buyers purchase property in Australia?
Yes, provided the following conditions are met:
The property must be a brand-new property or an off-the-plan property. You must apply to the Foreign Investment Review Board (FIRB) and obtain approval. The FIRB application is lodged by a lawyer and is generally approved within 10 to 30 days.
If you wish to buy an established property, you may only purchase one as your own residence, and you must apply to the Foreign Investment Review Board (FIRB) and obtain approval. In addition, you must hold a valid Australian visa of more than 12 months, and you must sell the property within 3 months of moving out; otherwise the government will force its sale at auction.
2. Is it worth buying property in Australia?
Absolutely. Australian real estate is an investment with a low entry cost (a deposit of around one million-plus RMB), stable returns (based on the average property prices in Brisbane and the Gold Coast, average annual capital growth exceeds 10%, including the use of leverage) and low risk. It is one of the most downturn-resistant property markets in the world (as demonstrated by the 1997 Asian Financial Crisis and the 2008 Global Financial Crisis).
3. What are the costs of buying a property?
On signing the contract: a 20% deposit. On settlement: once the property is completed, you pay the balance of the purchase price after the loan. For a house and land package, there are two separate contracts covering the land and the house. You first pay the land in full and complete the land settlement, then move into the construction phase of the house, paying the relevant instalments in line with the building progress.
Other costs of buying a property include: the Foreign Investment Review Board (FIRB) application fee, stamp duty, conveyancing fees, loan application fees and legal fees. Of these, stamp duty varies according to the state and the price of the property.
4. Can I obtain a loan to buy property in Australia?
Yes. Depending on your income, you can borrow up to 70%. Aobo Realty can provide loan services. Please contact us regarding loan requirements, document preparation, the process and fees.
5. Will overseas buyers' legal rights be protected after purchasing property in Australia?
Yes. Your property in Australia is fully protected by the same laws as those applying to Australian citizens. Under Australian law, you hold freehold title to your property.
A. Proof of overseas income
B. A copy of your passport and identity card
C. Proof of financial capacity to pay the amount beyond the deposit and the bank loan
7. I don't understand English and can't read legal documents. How can I be sure my legal rights are protected?
Under Australian law, every property purchase must engage a local lawyer. Your lawyer is completely independent and works entirely for you. If required, Aobo Realty can recommend a professional, Chinese-speaking lawyer. The lawyer's responsibilities include: 1) explaining the legal terms so you understand your rights and obligations, and guiding you through signing; 2) calculating the settlement funds, completing the payment and ensuring the smooth transfer of title.
8. Can I come to Australia to inspect properties?
Yes. If you wish, Aobo Realty offers business tours and family tours that combine property inspections with travel. Please contact us for details.
9. After buying a property in Australia, how do I lease and manage it?
Engage a locally licensed leasing agent. Rental management in Australia is highly professional and well developed, with comprehensive services including finding tenants, property maintenance, regular inspections, rent collection, bill payment and end-of-lease inspections. The leasing company provides regular statements to the landlord, and at the end of each financial year it provides a rental income and expenditure statement for use in tax returns. Agents generally charge 7%–9% of the total rent as a management fee.
10. How do I handle any disputes that arise during a tenancy?
Generally, the leasing agent handles these in accordance with the relevant laws and regulations. If you are still not satisfied, you can engage a lawyer to lodge a complaint with the Australian Office of Fair Trading (Fair Trading).
11. How do I go about selling the property in the future?
You can appoint any licensed Queensland real estate agent to sell your property. You do not need to come to Australia in person, and the transfer of title is also handled throughout by a lawyer.