How do temporary residents invest real estate?
“Temporary Resident” will be required to register with the Australian Foreign Investment Control (FIRB) and be approved when purchasing any Australian property in the form of a dwelling.
When preparing your Australian property purchase application, you need to know some of the requirements for FIRB approval.
Definition of “temporary resident”
Provisional temporary residents are individuals who meet one of the following two conditions:
- Temporary residence permits allow you to stay in Australia for more than 12 consecutive months (no matter how long your visa is valid).
- Currently resides in Australia and has applied for a permanent residence card, and owns a “linked” visa allowing the individual to remain in Australia until the application for a permanent residence permit is approved.
Types of Australian properties where “temporary residents” are purchased
- Australian real estate is old.
- Older homes are residential properties and are not newly built (not including commercial buildings such as hotels, motels and motels).
Often temporary residents will only be allowed to buy an old house to reside in Australia provided that:
– Only use this property as your primary residence in Australia.
– No part of the property shall be leased and must be completely empty at the time of handover.
– Must sell the property within 3 months from the date of removal from the property.
Temporary residents are not allowed to buy a second home for the purpose of investing, renting or in the form of a condominium. They must register with FIRB and be approved before purchasing any old property for renovation purposes.
Exemption Certificate for Auctions
Provisional temporary residents will have to register with FIRB and get approval before entering old property auctions. This is mandatory in Australian real estate law. Once the bid has been won, the applicant will have to buy the property without the right to refuse for any reason (“unconditional”).
The Secondary Exemption Certificate is a certificate that allows applicants to participate in more than one auction to buy a second home with a one-time registration fee. Candidates can buy any old house at a certain value and must declare to FIRB when the auction is successful.
New real estate
Temporary residents can buy new property in Australia without any obligation, even buying a new property after buying an old home. Although applicants still have to register with FIRB before buying, there is no limit to the amount of real estate that can be claimed.
New real estate is the type of real estate:
– Was, is and will be built in the residential area and has never been sold as a dwelling or has never been inhabited before.
– In case this property is part of the project and has been sold by the owner, it must not have been occupied for more than 12 months.
New real estate does not include refurbished or refurbished properties.
A single Australian property built to replace one or more destroyed old properties is not normally counted as a new real estate, as defined by the Foreign Investment
Certificate of Exemption for purchase of new real estate in the project area
Some of the new real estate properties in the project areas that have been granted FIRB Exemption Certificates will be entitled to sell to foreigners. In this case, once it is certain that the real estate is about to be acquired within the scope of the project, the temporary permanent resident may file a copy of the Certificate of Exemption for the project to FIRB.
As a result, temporary residents will not have to go through the procedure for applying for a foreign investment certificate to an individual as usual.
Provisional temporary residents will be allowed to buy vacant land for housing purposes, provided they meet the following conditions:
- The construction must be completed within 4 years from the issuing date.
- Must submit documents evidencing the completion of the house to the Foreign Investment Control Board FIRB within 30 days after the completion of the project. The application will include a certificate of residency or a certificate of completion of construction.
In some special cases, if the construction must last more than 4 years, the investor may apply for an extension depending on the specific circumstances (this extension must be made 2 months before the expiry date). 4 years).
Renovation, rebuilding old houses
Temporary residents are entitled to redeem old homes for redevelopment provided that this is of particular benefit to housing prices. The proposal will be approved if:
– Before the demolition, rebuilding, real estate Australia is not allowed to rent.
– Demolition and rebuilding should be completed within 4 years of the licensing date.
– Evidence of completion of the property must be submitted to the FIRB within 30 days of completion. The application will include a certificate of residency or a certificate of completion of construction.
The form of repurchasing an old property to re-build into a new property will not be valid in this case.
The Australian real estate investment document that is submitted to FIRB will have the following government fees:
|If the value is less than AUD $ 1 million||5.600 AUD|
|If the value of more than 1 million to less than 2 million AUD.||11.000 AUD|
|If the value from 2 million to less than 3 million AUD.||21.000 AUD|
|If added value 1 million AUD.||AUD $10,000 for each one million AUD deposit.|
If you are interested in inquiring or want to do real estate Australia please contact Gold Land Australia by Hotline 0911.899.595 (Hanoi) – 0911.899.597 (HCMC).