FIRB

First, you must obtain approval from the Foreign Investment Review Board (FIRB). You can purchase real estate only after you apply for and get approval from the FIRB (Foreign Investment Review Board). Otherwise there will be a fine! Currently the cost of applying for FIRB varies depending on the value of the property.

For more details please refer to the full list of FIRB fees.

Stamp Duty

Whether you are an overseas person or an Australian resident, you need to pay 4-5.5% stamp duty (different from state to state). Overseas persons need to pay additional stamp duty. Generally speaking, overseas people are mostly preset to purchase properties for investment purposes and can purchase unlimited properties. The government has a certain degree of stamp duty reduction and first-time homebuyer subsidies for Australian citizens and permanent residents. For international students or temporary visa holders, there will be special exemptions for self-occupation within 12 months after purchasing a house. The amount of stamp duty varies from state to state.

State foreign surcharges:

• Victoria 8%
• New South Wales 8%
• Queensland 8%
• Western Australia 7%
• South Australia 7%
• Tasmania 3%

For details, please refer to state and local taxes:

• Victoria
• New South Wales 
• Queensland
• Western Australia
• South Australia
• Tasmania
• ACT

Yes they can.

If an investor needs a loan to purchase a property in Australia, the bank will evaluate the investor's overseas income to measure the loan ratio and loan amount. If an investor needs loans for multiple properties, the relative income requirements will also increase. Generally, the loan amount is determined based on the property value, and the loan amount can generally range from 60% to 80%. The interest rate is also determined based on each person's income.

Generally speaking, the Australian government does not specifically restrict what types of properties foreigners can purchase. Apartments, luxury villas, vacant land, commercial real estate, farmland, and warehouses are all properties favored by overseas investors.

However, no matter what type of property you purchase, you must apply for a property purchase permit from FIRB before you can purchase it, otherwise you will face fines.

It usually only takes 10% to sign a contract for buying a house, and the remaining 90% of the price is not required until the property rights are delivered.

The signing payment needs to be deposited in a regulated trust account until the property is settled.

If you are not in Australia, most banks have foreign exchange business, as long as you comply with the remittance requirements of the resident bank. For larger remittance amounts (such as house purchase), legal and safe remittances can be made through compliant companies.

There are two parts to the land and building purchase and sale contract: the land contract and the construction contract.

When applying for a loan, the land contract and construction contract will be submitted to the bank together to apply for a loan. After the loan is approved (land and construction), the land delivery will begin. After the land is successfully delivered, the builder will apply for Building Approval on behalf of the developer. Once building approval is received, the home building process begins quickly and banks typically grant construction loans in five stages:

1. After laying the foundation (Slab Stage), pay 20% of the construction fee
2. After the frame is completed, pay 25% of the construction fee
3. After the capping and exterior wall (Lock-up) are completed, 25% of the construction fee will be paid
4. After the decoration (Fixing) is completed, pay 25% of the construction fee
5. After completion acceptance (Completion), 5% construction fee will be paid

The bank will pay your builder a progress payment at the end of each stage when you sign the claim invoice to pay the fee bill provided to you by the builder.

You will only repay the interest until construction is complete. The bank will also conduct regular inspections of the works to ensure that the construction works remain in compliance with the agreed upon construction contract. Once construction is complete, you will begin repaying the principal and interest.

High rental yields are indeed good for cash flow, but do not necessarily mean the property will provide strong long-term capital returns. This will depend on numerous factors. For example, a large two-bedroom apartment in Melbourne's inner city may have the same rent as a four-bedroom house in the suburbs, but it will cost less to buy than in the suburbs. The former will have a higher rental yield and therefore be better for short-term cash flow, but the latter will likely appreciate more in value than the former in the long term and provide higher capital gains.

Australian real estate, except for the ACT, which has a 99-year property right, almost all other areas have permanent property rights, which are land assets that are passed down from generation to generation. The process for overseas people to buy a house in Australia is not complicated. If you have a professional organisation, relatives or friends in Australia to help you, it will be more worry-free and smooth.

ELITEVISTA Property adheres to the core philosophy of treating clients like friends, establishing long-term trusting relationships and providing personalised service to meet everyone's varying needs and expectations. The team continues to learn and grasp real-time market information, and starts from the needs of customers. At the same time, it can combine visa expertise to evaluate the conversion time for temporary visa holders and provide phased investment plans.

After the sale and purchase of a house in Australia is completed, the real estate agent's task has been completed. However, if you are overseas or you are not familiar with Australia, you may feel quite troubled by the big and small matters after settlement. ELITEVISTA Property has an experienced customer service team who will be happy to provide you with post-closing information to help you settle down in Australia smoothly.

Major matters after the house is settled, including:

• Connect to water, electricity, gas and Internet
• Install curtains
• Purchase and install furniture
• Report housing defects to developer
• Move place
• Update address with official agencies and banks
• Register with school
• If you plan to rent, contact a reliable agent to find tenants