If you would like assistance in transferring your funds safely and quickly to Australia at cheaper than bank rates then we would recommend OzForex.

Click on the link below for the latest foreign exchange and currency information for property buyers, investors, traders and travelers:

OZ-FOREX THE FOREIGN EXCHANGE SPECIALISTS

Visa Entry Options into Australia

The Australian Business Innovation and Investment visa is designed to promote investing and carrying out business in Australia by granting permission for applicants to reside in Australia. In summary, the visa allows you to:

• Establish a new or develop an existing business and/or invest in Australia
• Travel in and out of Australia for the life of your visa
• Bring family members with you to Australia
• Fast-track your permanent residency application

There are four streams of this visa and there different requirements for each type:

1. Business Innovation
For people with who want to establish, develop and manage a new or existing business in Australia.Applicants must be nominated by a state or territory government.

2. Investor
For people who want to make a designated investment of at least AUD $1.5 million in an Australian state or territory and maintain business and investment activity in Australia. Applicants must be nominated by a state or territory government.

3. Significant Investor Visa
This is also known as the Significant Investor Visa (SIV). To be eligible, you must invest a minimum of AUD $5 million over four years in complying investments.

• No more than 10% of the investment vehicle’s net assets can be indirectly invested in residential real estate (eg. via managed funds and listed property trusts)
• Up to $3 million may be invested in managed fund(s) or LICs that invest in a combination of eligible assets that include:
  – Australian listed securities
  – eligible corporate bonds or notes
  – annuities; and
  – real property (subject to the 10 per cent limit on residential real estate)
• Direct investment in residential real estate is not a complying investment, however SIV holders can still independently invest in residential real estate so long as it complies with foreign investment rules

This visa also has a residency requirement of:

• The primary applicant residing in Australia for 40 days per year (or 160 days over four years); or
• the secondary applicant (who can be a spouse or de facto partner) to reside in Australia for 180 days per year (or 720 days over four years)

In return, the visa allows a path to permanent residency over four years. Applicants can be nominated by a state or territory government or Austrade on behalf of the Australian government.

4. Premium Investor Visa
This is also known as the Premium Investor Visa (PIV). To be eligible, you must invest a minimum of AUD $15 million over four years in complying investments including real property (excluding residential property). PIV holders can still independently invest in residential real estate so long as it complies with foreign investment rules.
The PIV offers a 12 month pathway to permanent residency. Applicants must be nominated by Austrade on behalf of the Australian government.

Note: other specific eligibility requirements for the above visa apply. See the Department of Immigration and Border Protection website for more information.
Click here for a referral to an Immigration Lawyer that can fast track your Visa approval.

The Australian Government encourages foreign investment that is consistent with community interests. The Government recognises the significant contribution that foreign investment has made and continues to make to the development of Australia. Foreign investment provides scope for higher rates of economic activity and employment than could be achieved from domestic levels of savings. Foreign direct investment also provides access to new technology, management skills and overseas markets.

What type of property can foreign investors buy?

Vacant Land
Subject to an investor commencing construction within 24 months of FIRB approval.

New dwellings
Investors can purchase new dwellings. Where approval is obtained by the foreign investor for each purchase, there is no restriction on the number of units in the development that can be purchased by that foreign investor. A foreign investor wishing to purchase more than one unit is also able to make one application for all of the units provided each unit is itemised on the application. This category includes dwellings that are part of extensively refurbished buildings where the building’s use has undergone a change from non-residential (for example, office or warehouse) to residential. It does not include established residential real estate that has been refurbished or renovated.

Commercial
Commercial real estate includes vacant and developed property which is not for residential purposes – such as offices, factories, warehouses, hotels, restaurants and shops. It does not include rural land. Purchase of commercial property is normally approved unless it is contrary to the national interest. This is determined by the Government on a case by case basis. Acquisition of certain types of commercial property do not require notification, regardless of the citizenship or residency status of the purchaser including:

• An interest in developed commercial property valued at less than $50 million or $953 million (indexed annually) for US investors, or $5 million for heritage listed properties where the acquirer is not a US investor; or
• An interest in developed commercial property where the property is to be used immediately and in its present state for industrial or non-residential commercial purposes. The acquisition must be wholly incidental to the purchaser’s proposed or existing business activities.

Note: Second-hand dwellings
Foreign persons are prohibited from acquiring established dwellings for investment purposes (that is, they cannot be purchased to be used as a rental or holiday property), irrespective of whether they are temporary residents in Australia or not. Foreign buyers can purchase an established dwelling as a home provided you receive approval from the FIRB (which typically takes from 2 to 10 days).

Significant Investor Visa
From the 24 Nov 2012, the Australian Government has created a new class of visa available to business people and high net worth individuals looking to invest at least $5 million in the Australian economy. In return for investing in State and Territory Bonds, Managed Funds or directly into Australian Companies overseas investors are offered concessions on the usual visa requirements.

To be granted a permanent Significant Investor visa, primary visa holder must be resident in Australia for at least 40 days for every year or part year that they have held a provisional Significant Investor visa. The residence period does not need to be met per year but can be met cumulatively over the time the primary visa holder held the provisional visa.

By obtaining a Significant Investment Visa, holders may purchase residential or commercial real estate subject to FIRB regulations.

(EXEMPTIONS)

Who does not require Government approval? (Exemptions)

You do not need to submit an application for approval to acquire real estate in Australia if:

• you are an Australian citizen living abroad
• your spouse is an Australian citizen (not a permanent resident) and you are purchasing residential real estate in both names as joint tenants (not tenants in common)
• you are a New Zealand citizen and you are purchasing residential property
• you hold a permanent resident visa and you are purchasing residential property
• you are purchasing new dwelling(s) from the developer, where the developer has pre-approval to sell those dwellings to foreign persons
• you are acquiring an interest in a time share scheme which does not permit you (and any of your associates) more than 4 weeks entitlement per year
• you are purchasing certain residential real estate in an Integrated Tourism Resort (ITR)
• you are acquiring an interest in developed commercial property valued at less than $50 million or $1004 million (indexed annually) for US investors, or $5 million for heritage listed properties where the acquirer is not a US investor
• you are acquiring an interest in developed commercial property where the property is to be used immediately and in its present state for industrial or non residential commercial purposes. The acquisition must be wholly incidental to the purchaser’s proposed or existing business activities
• you are acquiring an interest by will or by operation of law (such as, a court order regarding the division of property in a divorce settlement, but not if both parties simply agree to transfer property without a court’s intervention)
• or you are purchasing property from the Government (Commonwealth, State or Territory, or local)

Do I need Government approval to buy real estate in Australia?

You may need to apply for foreign investment approval if you are a foreign interest who is:

• purchasing residential real estate (includes established or new residential property, vacant land and hobby farms)
• purchasing rural land
• purchasing developed commercial real estate
• making an application for designation as an Integrated Tourism Resort or Strata Titled Hotel
• purchasing vacant commercial real estate for development
• acquiring shares, business assets or dealing with some other interest in an existing company
• creating a new business or project
• dealing with some other form of interest

A foreign interest is defined as:

• a natural person not ordinarily resident in Australia
• a corporation in which a natural person not ordinarily resident in Australia or a foreign corporation holds a substantial interest
• a corporation in which two or more persons, each of whom is either a natural person not ordinarily resident in Australia or a foreign corporation, hold an aggregate substantial interest
• the trustee of a trust estate in which a natural person not ordinarily resident in Australia or a foreign corporation holds a substantial interest, or
• the trustee of a trust estate in which two or more persons, each of whom is either a natural person not ordinarily resident in Australia or a foreign corporation, hold an aggregate substantial interest

Other situations where FIRB approval is normally given includes:

• Foreign companies buying residences in Australia for their senior executives
• Foreign nationals temporarily resident in Australia for more than 12 months buying for their own use as a principal place of residence subject to the sale of the property when they cease to reside in Australia
• Foreign nationals purchasing residential real estate as joint tenant with an Australian spouse

For further information and detailed government policies are available on the Foreign Investment Review Board website.

Foreign buyers are able to purchase brand new property (or buy land and build) in Australia.

Property investments in the major capital cities of Sydney and Melbourne typically double in value every 10 to 12 years.

Property investment in Australia is an excellent strategy, if the right location and property types are carefully selected.

Potential real estate and property investors need only look at the performance of median residential property prices in Sydney and Melbourne to see the significant returns that long term investors can make by buying well located property. Investors seeking advice on where to invest in real estate should choose their advisors carefully and ensure that any advice given is not tainted by commission driven sales people. Independent property investment help can be provided by buyers agents that are licenced in the relevant state you are buying and have a strong track record and at least 5 years experience.

To invest in Australian property you can buy either as an Australian citizen or as a foreign buyer. If you hold permanent residency (or are an Australian citizen) then you can buy established property. If you are classified as a foreign buyer, then you can only buy brand new property as regulated by the FIRB (Foreign Investment Review Board) guidelines.

The first step to considering where to invest in Australian real estate is to get your finance pre-approved. The next step is to consider which property investment strategy will work best for your individual situation (tax, income stage of life considerations etc). Then you need to consider which suburbs to target and it is recommended you engage with local real estate investment experts who can guide you.

Choosing a local buyers agent to help you to buy real estate requires more than just looking at their fees. Search for truly independent buyers agents that have a strong reputation, more than 5 years experience, and are licenced in the state you are purchasing. Look at the quality of their testimonials and ensure they have deep connections with local sales agents to find off market opportunities. Seek our buyers agents that have strong experience with foreign buyers and expats for buyers of Australian property.

To sell your property while overseas, consider engaging the advice of a local buyers agent to provide a vendor advocacy service. The buyers agent will act as your independent advisor on how to select the best local selling agent. As these buyers agents see the activity, negotiating and marketing skills of the selling agent on a daily basis, they are able to provide the best insight into which agents can truly act in the best interests of the vendor. They will provide a referral and warm introduction to the sales agent who will then establish a marketing campaign to list and sell your property while abroad.