Sunday, March 20, 2011

Foreign Investors Buying Property in Australia

Buying a Property from a Developer as a Foreign Investor
Apartments or townhouses in a proposed development, or in a development which has just been completed but has not yet been occupied or sold, can be sold to foreign investors as long as the developer applies in advance for this to be allowed. If a foreign citizen buys a property in this way (often called "buying off the plan"), the property, when built, can be rented out, sold or used by the purchaser.
You should ask to see a copy of the developer’s approval letter to ensure that FIRB approval exists for sales to foreign citizens.
You should be aware that, on purchase of any apartment, new or old, you are liable to pay regular levies (payable weekly, monthly, quarterly or annually) to cover the costs of the property and grounds that all the residents use. A group known as the body corporate, made up usually of your fellow owners, is responsible for collecting levies for two funds, called an Administration Fund and a Sinking Fund. These funds go towards servicing the lifts, repainting the building, lighting the hallways - the various maintenance jobs that benefit all residents. If you are buying into an apartment block with, for example, a gym, swimming pool, rooftop tennis court and so on, levies will be comparatively high.
If you are planning to buy an apartment, your legal representative will need to make a Strata Records Inspection. This will outline how much the levies are at the time of purchase. Such an inspection will also tell you the rules governing use of common facilities, whether or not pets are permitted as so forth.
The process is quite a simple one and if you are dealing with a reputable broker then you will have a hassle free experience.


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