Firstly, it's important to note that Australia has regulations in place to monitor foreign investment in the country's residential property market.
Firstly, it's important to note that Australia has regulations in place to monitor foreign investment in the country's residential property market. The aim of these regulations is to ensure that foreign investment is consistent with Australia's national interests and does not negatively impact the country's housing market or its residents.
The FIRB has different rules for different types of residential property investments. Generally speaking, foreign buyers are allowed to purchase new dwellings, such as newly built apartments, townhouses, or houses, as well as vacant land for residential development.
However, foreign buyers are generally not allowed to buy established dwellings, which refers to existing homes that have been previously lived in. This is to ensure that established homes remain available to Australian citizens and permanent residents.
Foreign buyers who wish to purchase new dwellings need to comply with a rule known as the "new dwelling exemption". This exemption allows foreign buyers to purchase new dwellings without needing to apply to the FIRB for each individual property. However, the developer must have received FIRB approval for the development and the foreign buyer needs to meet certain criteria.
For example, the purchase price of the property must not exceed the prescribed threshold for that financial year, which is currently AUD 1,200,000 for most properties. The foreign buyer must also be buying the property as an individual and not on behalf of a company or trust. Additionally, the property must be used as the foreign buyer's residence or as a rental property.
Foreign buyers who wish to purchase vacant land for residential development are also subject to FIRB approval . The purchase of vacant land is subject to an annual foreign ownership limit, which is currently set at 30% for new developments. This means that if 30% of the properties in a new development have already been sold to foreign buyers, further foreign investment will not be permitted.
It's worth noting that FIRB approval is not guaranteed and each application is assessed on a case-by-case basis. In general, foreign buyers who can demonstrate a commitment to Australia and its economy are more likely to receive approval.
In summary, foreigners can generally buy property in Perth, but they need to comply with FIRB regulations and restrictions . Foreign buyers are generally limited to purchasing new dwellings or vacant land for residential development, and FIRB approval is required for each purchase. It's recommended that foreign buyers seek legal advice before making any purchases to ensure they are complying with all the regulations and requirements.