For foreign real estate investors, Australia’s booming residential property market, economic stability, natural beauty, and pleasant temperature have made it a desirable location.
The restrictions for non-residents buying property in Australia, on the other hand, are complicated and constantly changing. For foreigners, this may make the process of obtaining clearance to purchase an investment property quite difficult to comprehend. Furthermore, there are severe penalties for violating the foreign investment laws.
Foreigners are purchasing one out of every five new homes sold in NSW and Victoria, but they aren’t only buying the most costly homes. Foreigners tended to buy newer, more costly homes, shopping in a market distinct from that of first-time house buyers.
Rules for non-residents buying property in Campbelltown
Non-residents must purchase new properties or unoccupied land on which new development is planned when purchasing real estate in Australia. This policy was adopted by the Australian government to enable non-resident investors to contribute to the housing stock in Australia rather than compete with locals for existing houses, which are in limited supply in some locations. It also seeks to prevent speculative investment by foreigners from driving up home prices. There are, however, a few exceptions to this rule.
The Foreign Investment Review Board oversees non-resident property transactions in Australia (FIRB). Any non-resident who wishes to purchase a residential house, apartment, or plot of land in Australia must adhere to the FIRB’s requirements.
Non-residents and temporary residents who purchase property in Australia without FIRB clearance face a fine of up to $157,500 and three years in jail. Any real estate brokers who break the FIRB guidelines face sanctions as well.
What kind of properties is available for non-residents to purchase in Australia?
Non-residents are limited in the categories of property they can purchase under the FIRB laws. Non-residents can only acquire new residential property, existing residences for renovation, or empty blocks of land for construction from December 2015.
As a non-resident of Australia, you can purchase a new home
A new residence, according to the FIRB, is one that has been built or is in the process of being built and: has not previously been sold as a home; and either: has not been previously occupied; or if the home is part of a development and was sold by the development’s developer, has not been previously occupied for a total of more than 12 months.
Vacancy fee per year
A non-resident who buys an Australian residential property but does not live in it or rent it out for at least six months of the year is liable to an annual vacancy fee, according to the FIRB guidelines. When non-resident owners of Australian real estate file their yearly vacancy fee reports, the Australian Taxation Office (ATO) determines the charge amount.
Paying tax on investment property in Australia
If you acquire an investment property in Australia, you must file an Australian tax return to record the income you get. The costs of property upkeep can be claimed as tax-deductible. If the property’s value rises during your ownership, you may have to pay capital gains tax (CGT) when you sell it.
Purchasing an existing home in Australia for refurbishment
The most important factor to consider when redeveloping an existing home is whether the finished product will add to Australia’s housing stock. The FIRB interprets this to indicate that at least one new residence was built, implying that a single home could not be converted into another single house. Redevelopment of existing residences is also subject to the following conditions:
- Before destruction and redevelopment, the existing dwelling(s) must remain empty.
- Within four years on the date of approval, the previous house(s) are removed and the new residence is finished; and
- The applicant must produce proof of finished homes within 30 days of receiving them. A final occupancy certificate or a builder’s completion certificate are examples of this.
Purchasing unoccupied land as a non-resident of Australia
Non-residents may purchase vacant property for development after obtaining authorization from the FIRB. They must also satisfy specific restrictions related to the land’s development, such as finishing the construction of a residential home within four years after permission and providing confirmation of completion within 30 days. The FIRB does not regard unoccupied land that has previously been occupied by a habitation to be vacant.
What sorts of properties are available in Campbelltown for temporary residents to purchase?
A temporary resident, according to the FIRB, is someone who-
- Has a temporary visa that allows them to stay in Australia for more than 12 months in a row (regardless of how long the visa is valid); or
- Is currently resident in Australia, has applied for a permanent visa and owns a bridging visa that allows them to remain in Australia while their application is approved.
After receiving FIRB permission, foreigners on a temporary visa, such as a spouse visa or a 457 visa, are entitled to acquire a single existing or new property to live in during their time in Australia. Alternatively, if they want to build a home, they might acquire an empty plot of land. In addition to having to utilize the property as their primary residence while in Australia, the temporary resident must also-
- Not to rent any part of the property, including making sure it is unoccupied at the time of settlement; and
- When the property no longer serves as their primary residence, they must sell it within three months. The property does not have to be sold if permanent residency is achieved.
Why Invest in Campbelltown as a foreigner?
Campbelltown is quickly becoming one of Australia’s fastest-growing communities, with enormous opportunities for investors, large and small enterprises, and people alike. Because of the city’s accessibility, affordability, lifestyle, and job possibilities, more businesses are finding Campbelltown and deciding to relocate here.
The city’s location is one of the numerous benefits. Campbelltown is 45 minutes from Sydney’s CBD by rail, 30 minutes from Sydney International Airport by car, and less than an hour from the Southern Highlands, Wollongong, and the South Coast by car.
Campbelltown has substantial road and rail networks that connect it to the nation’s major cities as well as the airport.
The Hume Highway/M31 Motorway, which connects Melbourne, Canberra, Sydney, and the Sydney International Airport, is just minutes away from Campbelltown CBD. Campbelltown is immediately connected to the areas north of Sydney’s CBD through the M7 Motorway. The Northern Road connects Penrith to Wollongong and the Illawarra area, while Appin Road connects the city to Wollongong and the Illawarra region.
Campbelltown is connected to Sydney, Sydney Airport, Canberra, and Melbourne by direct train. In addition, the Macarthur Intermodal Shipping Terminal (MIST) in Minto maintains a freight rail terminal and warehousing facility, allowing businesses to move products across Australia by rail.
Campbelltown has a substantial educational sector, including some of the state’s highest performing schools and a variety of high-quality university education options.
With 42,000 students, Western Sydney University (WSU) is one of Australia’s largest and most highly regarded institutions. In the renowned Times Higher Education World Institution Rankings, the university, which has a campus in Campbelltown, is placed among the world’s top 100 universities under the age of 50.
The Western Sydney Innovation Corridor’s designated Integrated Health Hub is WSU Campbelltown Campus. The university is a major source of medical, nursing, and healthcare professionals in Australia. Each year, the WSU School of Medicine, which opened on the Campbelltown Campus in 2008, graduates more than 100 doctors, with 70% of them remaining in the city and surrounding region to practice medicine.
Available and affordable land
In the backdrop of Sydney’s shrinking land supply, rising property prices, and increasing population demands, the city’s land availability and capacity for greenfield developments are crucial. There are large swaths of undeveloped land available for development in Campbelltown.
The Campbelltown Local Government Area (LGA) contains a prime property for residential, commercial, and industrial development and redevelopment that is adjacent to major road and rail networks and accessible at affordable costs. Along the Glenfield to Macarthur train route, there are seven urban precincts, as well as 24 hectares of land in the proposed Menangle Park and Mount Gilead release zones that will be used for employment.
So, Can foreigners buy property in Campbelltown? The answer is yes, but of course, you need to abide by the rules and formalities. You can hire me as your real estate agent and I will find you the perfect real estate you can invest in.