What Should Foreigners Know About Buying Commercial Properties in Australia?
Australia is a country where dreams turn into reality. It is a hotspot for buying commercial properties as it has a high potential for heavy returns on investment. But as a foreigner, you may be wondering if it is really possible to own a commercial property in Australia.
The good news is that, yes, foreigners can buy commercial properties in Australia. However, there are a few restrictions and guidelines that one needs to follow. To help foreign investors make their Australian dream come true, it is important to find a qualified buyer’s agent in Melbourne to help them direct their money to the right place. These professionals specialise in providing fair evaluations of commercial properties that help buyers make the right choice. But what are the guidelines and restrictions that you must know about when investing in commercial properties as a foreigner in Australia? Let us find out.
Who Is a Foreigner?
Before we understand how foreigners can own commercial properties in Australia, let's define a foreigner. Every country has a different definition. Under Australian law, a foreigner is an individual who is not a permanent resident of Australia. So, who is a permanent resident?
A permanent resident refers to an individual who has a permanent visa or is a New Zealand citizen with a special visa category. So, if you don’t fall under the categories mentioned above, you will be termed as a foreigner. Now, there are some rules that one must follow when buying commercial property in Australia as a foreigner. Let us find out more about the rules in the following sections.
The Foreign Investment Review Board (FIRB) Approval
All foreigners can buy commercial property in Australia as long as they have the FIRB approval. The FIRB is a government body that determines whether foreign investment is going to benefit the Australian economy. If the body decides that your investment in a commercial property will lead to growth in the economy, getting approval to purchase a commercial property becomes comparatively easier. Here, you need to remember that FIRB approval is required not only for the purchase of commercial property but also for agricultural and residential properties.
The Foreign Investment Review Board (FIRB) Exception
There are certain exceptions to the Foreign Investment Review Board’s (FIRB) approval. Firstly, if you are a citizen of New Zealand, you can purchase property in Australia without FIRB approval. Secondly, if you are in Australia on a temporary visa and plan to purchase a property in order to live there for the duration of your stay, you are also exempted from the FIRB approval.
What Are the Restrictions on Buying Commercial Property in Australia as a Foreigner?
Although the Australian economy has a welcoming attitude towards foreign investment, there are certain restrictions when it comes to purchasing commercial property:
- You can’t buy a property in an area that is termed “sensitive.” These areas can be a region of national importance, such as a defence site. In addition, sensitive areas also include land near an important infrastructure that holds national importance.
- Apart from this, you can’t buy property near the Great Barrier Reef. This area is an environmentally sensitive region, and foreign investment may impact the ecological balance.
- Moreover, you can’t buy property that is listed on the National Heritage List or the Commonwealth Heritage List if you are a foreigner.
How Do I Apply for the FIRB Approval?
If the commercial property you are planning to buy doesn’t fall under the above-mentioned list, you have a green signal. All you need to do is apply for FIRB approval.
- Go through the guidance note present on the FIRB website and check if you match the criteria.
- If you match the criteria, follow the application checklist to see if you have all the required documents and information.
- Now, find the application form on the website. Remember that the application form is different for different properties. Check which one matches your investment criteria.
- Now, sign the declaration and submit the application form. You must also pay an application fee when you apply for approval. Remember, the fee will vary depending on the type of property you are applying for.
- It takes around 30 to 40 days for FIRB to declare the approval.
Conclusion:
Many investors dream of buying a property in Australia. Since the country's economy is bustling with opportunities, every investment has the potential to multiply manifolds. However, the property buying process can be complicated, especially if it is your first time. This is why it is best to hire professional assistance to purchase your dream commercial property and ensure that you are paying a fair price.
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