Foreign Investors

Buying Property in Australia as a Foreign or Temporary Resident

Australian business, prestige homes, and investment properties are extremely lucrative and therefore pose a highly attractive prospect for local and foreign buyers alike. However, buying a property or investing in Australia as a foreign citizen or temporary resident is complex, expensive and heavily regulated. The rules of law are upheld consistently, and any breaches incur hefty penalties.

Substantial changes were made to the rules surrounding foreign investment in December 2015 in response to fears that affluent overseas buyers (mainly from Asia), making offers above market prices, were driving up property prices and pushing first home buyers out of the market. The overriding aim of the new rules is to ensure that each purchase by a foreigner works to the benefit of the wider community.

Luis is well-versed and supremely experienced in navigating this process, along with the relevant laws and rules, and through HLG Property Advisory Service he is ready to make your acquisition process as streamlined and stress-free as possible.

How HLG Property Services Can Help

As a foreign investor, there is no reason why you can’t reap the benefits of the highly lucrative Australian market; you just need the right team behind you.

The first thing to know is that only particular types of property are available to foreign buyers in Australia. Under the current regulations, no established residential property can be bought by an overseas or temporary resident, even if in partnership with a local. Also, foreigners are not allowed to purchase established holiday homes or weekenders (lodges and small rental accommodations).  

There is a chronic shortage of affordable residential properties Australia-wide, and most prominently in major cities and around crowded suburbs located 10-15 km from the Central Business Districts (CBD) . High demand is the key factor for rising rental prices, and the Foreign Investment Review Board (FIRB) has stipulated that foreign citizens are not allowed to buy properties (land, existing houses or apartments) for the purpose of renting them out or to speculate on rising property values.

Exceptions to these rules are made for all purchases, acquisitions and new property developments that will increase the housing stock across the country. Foreign citizens, businesses or corporations are therefore permitted to:

1. Buy vacant land and build new properties with the purpose of renting them (e.g., condos, townhouses, apartments, single homes, etc.)
2. Buy new apartments off-the-plan
3. Redevelop non-residential buildings into new homes

Foreign citizens are also allowed to buy homes for themselves, where they intend to live as full-time residents in Australia. Businesses or corporations can also purchase properties for their employees and staff. A property acquired with this permission cannot be rented to third parties and must be sold when the resident permanently departs.  

All property purchases must be approved by the Foreign Investment Review Board. No agreement must be made with real estate agencies, building companies, utility or infrastructure services, banks, or arrangements made with third parties in Australia prior to receiving approval. So, if you make an offer on a property, it must be clear that this is contingent on approval being granted. Approval is always only for one specified property; there is no general approval. Each application costs $5000 for property under $1 million, and $10 000 for property over $1 million, increasing by $10 000 for each additional $1 million. This is why prudent investors will need a certified and experienced local agent, such as HLG Property Services, on the ground to narrow the property search, conduct due diligence and focus only on those property investment opportunities that are likely to be granted approval.

Through HLG Property Services, Luis will help you search vacant lands, negotiate and buy suitable off-the-plan investments, and provide assistance in the redevelopment of non-residential buildings into new rental homes. This will include guidance and full support throughout the process of applying to the FIRB, any required DA, tender process, or negotiations for building or purchasing properties that are compliant with current regulations.

Why choose HLG Property Buyer Advisory Services?

As you can see, while the idea of owning an Australian property or assets is highly desirable, the regulatory environment is far from simple and is also subject to change. Whether you’re an individual or corporation, if you’re considering acquiring property in any Australian jurisdiction, we highly recommend that you seek:

1. Legal advice in Australian property law
2. An Independent Property Buyer Agent or Buyer Advocate – This is a certified real estate agency/agent, who has a fiduciary obligation to act in the best interest of the buyer only. They don’t list, market or sell properties and are therefore free from any conflict of interest. They help investors to secure “the right investment property at the right price”, while saving valuable time and money.

Widely recognised for our boutique approach to real estate, HLG Property Advisory Services specialises in niche markets and is uniquely positioned to help clients tap into an extensive network that takes a unified approach to real estate in Australia. As a full-service agency, catering to premium and upper middle markets in select lifestyle locations across Australia, HLG Property provides advisory services, acquisition guidance, and full support to high profile clients, small and large corporations, all with the same commitment, professionalism, and attention to detail.

HLG Property Buyer Advisory Services and Real Estate Services (RES) are powered by HLG Holding (Australia) Limited, an investment and specialised business service firm committed to delivering superior service, sustainable value and consistent financial returns to its clients. As well as offering a full range of services, RES is strongly focused on helping clients with asset management, tenant retention, active leasing and operational and financial performance of the assets.

After seven years in operation, and due to changes in Australian property regulations, HLG Property Buyer Advisory Service was re-launched in 2017 with a revised strategy and operation model to better serve our clients.

Excellence in Service: Our locally-based, cross-functional teams, state partners and support staff are not only exceptionally responsive but also proactive in both strategic and day-to-day operations.

Unparalleled Knowledge & Expertise: Our buying team brings together an unmatched market knowledge and experience in asset management, valuing, sales, property and facilities management. This means that you can be confident that the advice you receive reflects the full investment potential of the property in the market today, and shortly.

Global Reach: Although we are based in Brisbane, Australia, HLG Property Buyer Advisory Services and Real Estate Services (RES) can be reached by clients living across the country and around the globe through our strategic partnerships. We employ a friendly, multicultural and multilingual team of staff who are ready to assist international investors.

HLG Holdings (Australia) Limited is continually expanding its suite of premium property services to deliver a boutique experience with a distinct point of difference. We are not the largest premium property service in Australia, but we are the best in class.