Overseas Property Investors

Are you a non-resident looking to invest in the Australian property market?

Viking Property has helped many overseas property investors to get a stake in the Australian property market by providing professional investment property advice and support. We understand the requirements for non-resident purchasers and can assist and guide you through the entire process.

You get access to the same help, advice and support as our local investors; the only difference is that extra documentation may be required. A number of brokers we are affiliated with have particular experience with international investors. Their wide panel of lenders offers a range of different home loan options. Not all however will lend to non-resident borrowers.

Arranging finance in Australia

Certain application processes mean non-residents do not have to come to Australia to obtain a loan.
Loans granted for property purchases would generally be classified as investment loans, as the buyer is not usually able to occupy the property on a long-term basis.
Most financial institutions will lend up to 80% of the value of the property. Some will only lend to 70% of the value.
You will also need to have funds to pay property stamp duty, loan stamp duty, conveyancing costs, building and pest inspection, and lender cost such as application fees, etc.
Foreign investors should check the rules with the Foreign Investment Review Board (FIRB) before signing a contract because there are a few exceptions to the rules.
There are various other restrictions and conditions that your Mortgage Choice broker can help with

Foreign investment lenders.

Many of the lenders on our Mortgage Choice panel will consider foreign investors.

Each lender has their own criteria for lending.
Some will lend up to 80% of the value.
You may be able to borrow in a foreign currency but the Australian dollar is the most popular currency.

What is a non-resident borrower?

The term non-resident refers to those people who do not have permanent residency status in Australia i.e. those who do not hold a special category visa.
You will be required to make application through the Foreign Investment Review Board.
The Foreign Investment Review Board is a non-statutory body established in April 1976 to advise the Government on foreign investment policy and its administration. It examines proposals by foreign interests to undertake direct investment in Australia and makes recommendations to the Government on whether those proposals are suitable for approval under the Government's policy.
The application form and information can be found at www.firb.gov.au

What properties can you purchase?

To promote the development of new dwellings, non-resident buyers are generally restricted to purchasing:

Real estate for residential redevelopment, where construction must begin within 12 months.
Vacant land, where construction must begin within 12 months.
Home units, townhouses etc. off the plan, where they are under construction or just completed, but never occupied or previously sold.

Documents required for a loan application

100 points of Identification – Photo ID containing your signature e.g: passport or driver’s license.
Proof of income.
Savings account statements from all savings accounts.
Proof of other assets such as property, motor vehicles, shares, managed funds, home contents.
Evidence of all liabilities; personal loans, mortgage loans, credit/store cards, lease liabilities, interest free loans, any other debts.

Your bank or broker will be able to provide you with a full list of documentation and help you through the process of organizing your investment property loan.

This information is intended as a guide only. We suggest that you seek independent financial and legal advice.

Like all investments it pays to do your homework before you take the plunge into property. But even with rising interest rates, a sound strategy can pay off. The shortage of rental properties, combined with rising prices in most markets, means that if you choose the right property and make sure you keep a close eye on your investment, you could reap the rewards.

Take a long-term view and realise that investing in property is usually a long-term strategy

The housing market is generally a 7-10 year cycle; there are always highs, lows and steady patches. Make sure you’re comfortable with how much you’re borrowing, and you know what your financial goals are. Plan ahead – you may find a long-term tenant or you may find that your tenants come and go. Make sure your cashflow is sufficient so that you can cover the mortgage and other outgoings while the property is empty.