|Posted by Uma Mahadeva 11 April 2017.Thinking of purchasing in Australia as a foreign buyer?: This is what you need to know.
The Australian property market is often sought after by foreign investors or Australians working overseas seeking a stable long term investment. Foreign buyers may be overseas or local, Australian permanent residents or foreign nationals. We have sifted through the conflicting information and for the purposes of purchasing in Australia we shall consider 4 categories:
- Foreign national living and earning outside Australia. This type of buyer needs FIRB approval before purchase. They need to add one month to factor in the FIRB approval for settlement and in some cases it could take only 2 weeks. Generally considered as foreign buyer by the lender and consequently income will be shaded and a lower LVR will be applied. Loan terms will typically be 3 years only.
- Foreign national living within Australia and earning outside Australia. Similar policy as above applies and the person will be treated as a foreign national. However depending on the Visa status he will be allowed to purchase a principal place of residence which must be sold when he leaves.
- Australian National working abroad earning foreign income. In this type of scenario the person will be treated as a foreign resident as far as lending is concerned. However he does not need FIRB approval.
- Australian National working abroad, earning AUD. Treated as a local by then lender. No FIRB approval required. Local lending policy applies.
We can source lenders who are willing to lend in this space. Call us for a confidential discussion on 0413788582.