The process of investing in property in the beautiful country of Australia is for the most part uncomplicated. Foreign investors are welcome to own Australian real estate as long as the property has received approval from the Foreign Investment Review Board for sale to an overseas investor. Any income or capital gain that comes from investment property in Australia must be reported to the taxation authorities of Australia; however, there are some incentives in place of foreign investors that negate or reduce taxation liability. Generally, the first step to investing in Australian property is to find the ideal real estate for sale that will suit your particular needs.
Be Sure To Survey
Particularly, in some parts of the country, it just makes sense to have a complete survey done on any property in which you are interested because moisture damage, termite infestation and other unpleasant issues are common in some buildings.
The Archicentre and the Housing Industry Association both provide a service of survey review for a fee. You will also find several private firms, which offer similar services based on region.
If you must apply for a loan to finance your investment in Australian property, most lenders will require a survey of the property before lending any money. Remember to contact a domestic or international lender ahead of time to determine how much should be borrowed.
Finding The Property
Once you have your finances in order and are ready to find your ideal investment property, you have a couple of options available to you. You could make an offer to buy a piece of property or you could bid on investment property at auction.
If you decide to find your property at auction, then it would be in your best interest to have at least ten percent of the overall price on hand the day of the auction. This will allow you to secure the deposit once your bid is successful. If you decide to us a real estate agent or service to find the investment property for you, ensure that the agent is a bona fide member of the Real Estate Institute of Australia.
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Hi Sean,
I’m learning so much reading your blog. I’ve never heard of the Foreign Investment Review Board. It seems that foreign investors do have a bit of a process to go through before they can buy an Australian investment property.
I’m guessing this would be the same if we wanted to invest somewhere overseas?
A lot of people are against foreign investment but real estate is a business, similar to the stockmarket, and there are safegaurds inplace to allow everything to proceed satisfactorily. Buying a property at auction seems to be a Australian icon and many properties are purchased at bargain prices through this method.