In recent times it has been observed that more and more
foreigners, both individuals and companies, want to purchase
property in the form of house or real estate in Australia.
The Australian government has therefore relaxed and
simplified the investment rules concerning purchase of
property by foreigners.
A distinction to be made about property purchase by
foreigners is that the regulations do not permit investments
in land or house. They can be purchased only for the purpose
of residing in the said property. Foreigners who hold a
valid temporary residence visa are eligible to purchase
single blocks of residential land with the proviso that it
will be used for building their residential house.
The rules for purchasing residential property by visa
holders are quite relaxed and permissible without reference
to the expiry date of visa. This in effect means that except
for people with short term or business visa, all those
holding temporary visa can purchase property in Australia.
Companies which have been incorporated abroad but conducting
operation in Australia are allowed to purchase residential
property for use of their workers. In circumstances where
the residence remains vacant for more than six months, it is
incumbent upon the company to either sell or let it out.
Foreign companies can purchase any number of residential
accommodations for their executives and workers.
As mentioned earlier, Australian laws do not generally
encourage purchase of assets for investment purposes other
than for acquiring residential property by foreigners,.
Though transactions of smaller nature do not require
government clearance, bigger investment proposals are vetted
by the authorities and permission granted if the investment
does not infringe on national interest. The definition of
national interest is still not clearly laid down and there
is criticism that some decisions are arbitrary. There is a
demand for clear guidelines to be formulated in this regard.
In cases where it is mandatory to notify government
authorities regarding investment by foreigners, certain
financial limits are prescribed. Investments by foreign
governments need clearance irrespective of the size and
quantum.
Overall, investment by foreigners for purchase of
residential property in Australia is permitted. If the
investment is for any other purpose, including speculation
in shares, one must consult a lawyer specializing in
immigration and visa laws. The quantum of investment can
vary to a large extent and permission from Foreign
Investment Review Board is required in most cases.
