Can overseas buyers purchase property in Australia?

Yes, overseas investors are able to purchase property in Australia to live in, to rent out, or to enjoy as holiday homes.  There are certain rules relating to foreign ownership of property in Australia, and buyers need to get approval from Foreign Investment Review Board (FIRB). As a guideline for residential real estate these include: - You can buy “off the plans” where construction of the property has not yet commenced. - You can buy a property under construction, but not yet completed - You can buy a new property that is completed, but not yet lived in.

Can I borrow money from an Australian bank to purchase an investment property?

Australian banks are not lending to overseas investors at the moment. Austra Team is here to assist you if you need any information from other lending intuitions, or reputable Mortgage Brokers for the finance you may require for your purchase of real estate. 

What type of property can I buy?

Residential properties; commercial properties and rural-zoned land. We can advise of the best type of properties suitable for purchase by foreign and local investors. 

For residential properties, these will usually include Apartments; Townhouses; and House & Land packages.

What Title is the property held under?

In Australia, you can purchase property which is held under Freehold Title. When properties have a Body Corporate – such as with apartments and townhouses - this is referred to as Group Title Freehold.

How many properties I can buy in Australia?

Australia welcome overseas buyers to invest in Australia real estate. There is no limitation on the number of properties you can purchase.

What is negative gearing?

When the interest rate on the borrowed funds used to purchase an asset or make an investment is higher than the expected income yield on the investment, the practice is called “Negative Gearing”. The investor may be able to offset the loss against other taxable income.  We can assist by recommending specialist Accountants and Taxation advisors to our clients.

Will there be Property depreciation allowed to claim?

 For your investment property in Australia, you may be eligible for significant taxation deductions to offset the rent income by means of Depreciation Allowances. The Australian Taxation Office (ATO) allows property owners to claim Depreciation, as a deduction. For your investment property in Australia, you may be eligible for significant taxation deductions to offset the rent, which is very worthwhile. Austra Team can recommend to you the consultants who can assist you to prepare a Tax Depreciation Schedule Report for your tax benefits in Australia.

When is it a good time to invest in property? 

An investment in real estate is one of the ways of protecting the value of your savings against inflation because it can return capital growth over the long term. Base on the demand and supply of the properties in the market, you may find cycles of real estate in different capital cities of Australia. As regards the timing of your purchase, this will depend on your personal and financial situation, and your investment strategy. A good time may be the time that you allow yourself to be worry free with your intuitive decision after you have the facts.

Do I pay tax on my investment property’s rental income?

Yes. As you earn rental income in Australia, you are subject to the taxation laws of this country. However, you will receive taxation benefits to offset against that income because you are providing accommodation for tenants. If your property in Australia is purely for your holiday use or for yourself to live in, there is no income tax payable. We can assist by recommending specialist Accountants and Taxation Advisors to our clients.

Do I need to pay a Land Agent?

Usually, the land agent’s fee is paid by the seller of the property, not the buyer. You may also appoint Austra Team to be your buyer’s agent and to cooperate with you to find your real estate.

Should I use a Lawyer or Solicitor?

Yes. To protect your interests, it is important to use the professional services of a Solicitor in Australia, who is licensed to practice in the state where the property is located.  If buying a property in Queensland, you would use the services of a Solicitor who is licensed in Queensland. 

Will my deposit money be safe?

When you purchase a property in Australia and pay a deposit, those funds are held in a Trust Account and will not be released to the developer or seller until settlement takes place.

Am I entitled to a cooling off period, if so for how long?

Yes, the Queensland Government provides all Buyers of residential property in Queensland with a compulsory five(5) business day cooling-off period. During this period the Buyer is legally entitled to cancel the Contract of Sale with a charge.

Who will look after my investment property?

To make your property investment a profitable one, you need the right team working for you. Austra Team has established a property management team to take care of your investment property so that you can be hassles free.