PERTH & MANDURAH 08 9367 4222

08 9367 4222

shutterstock_121452739Foreign investment has recently been strong within the Australian market. According to the Department of Foreign Affairs and Trade (DFAT) this is attributed to consistent economic growth, as Australia has entered it 23rd year of uninterrupted annual growth, the decreasing Australian dollar, and also the fact that Australia is the fourth easiest place in the world to set up a business.

One such foreign investment opportunity that is high in demand throughout Australia, and in particular Western Australia, is property. When seeking property investment, foreign investors must have their property contracts approved by the Foreign Investment Review Board (FIRB). The FIRB is accountable for assessing all overseas investors applications in regards to property investment and living purposes.

Temporary residents and or foreign investors must submit their property purchase for FIRB approval. There are certain requirements that foreign investors must adhere to. Temporary residents are people who are residing in Australia with a temporary visa (permitting them to stay for more than 12 months) or have submitted an application for permanent residency and hold a bridging visa.

Firstly, temporary residents are only able to purchase one established dwelling, they must live in the dwelling and they must sell the dwelling if they no longer live there anymore. Secondly, foreign investors can only purchase a new property or vacant land if it is to develop a new property, and they are not allowed to purchase an established dwelling.

The most prominent foreign investors are from Hong Kong, China, Singapore and South Africa. Data from the FIRB states that foreign investment in WA properties has increased from 368 in 2010 to 877 in 2012. It is also stated that Chinese investors are now purchasing approximately one in 10 off-the-plan apartments in Perth. This is enabling more projects throughout Perth to get off the ground due to high levels of pre-sales to foreign investors.

Due to this, prices are artificially high at the moment and Launch Finance recommends seeking professional advice to ensure you are purchasing and or selling at an accurate price.