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Investing within Australia by parties living overseas is governed by the Foreign Investment Review Board (FIRB). “The Board 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”.
Investment in real estate is covered by the legislation the Board has authority over and includes investment in commercial, residential and rural real estate. Not all investors living overseas are affected by the legislation. Some of the situations classified as exempt – meaning you are not required to submit an application for approval to acquire real estate, include;
- Australian citizens living abroad;
- If your spouse is an Australian citizen (not a permanent resident) and you are purchasing residential real estate in both names as joint tenants (not tenants in common);
- A New Zealand citizen purchasing residential property;
- If you hold a permanent resident visa and you are purchasing residential property;
Banks and lending institutions also have their own criteria for lending that applies to Australian citizens and non residents investing in real estate in Australia. For instance some lenders may restrict the LVR (loan to value ratio) or the income used in serviceability calculations.
Our expertise in this area ensures you can take advantage of the most suitable financing strategies available to help you achieve your goals. We have helped many people working and living overseas, who have wanted to capitalize on their earning capacity while overseas and benefit from investing within the secure and ever-growing real estate market of Australia.
We can also assist you with loans structured in the foreign currency** your income is derived in providing a natural hedge for your investment. Whatever your requirements are please give us a call or email us, as we are here to help.
 Foreign Currency Home Loan
The Foreign Currency Home Loan offers clients who may be residing either within Australia or offshore the ability to borrow funds in a foreign currency, provided their main source of income is denominated in the same foreign currency, creating a natural hedge for loan repayments.
The foreign currencies available are listed below. Please note that customers also have the choice of borrowing all or part of the loan funds in Australian dollars and can split the loan accordingly if required.
- Hong Kong dollar (HKD)
- United States dollar (USD)
- Singapore dollar (SGD)
- British Pound Sterling (GBP)
- New Zealand dollar (NZD)
- Euro (EUR)
The key benefits of the Foreign Currency home Loan are that:
- Customers can match their loan repayments to the currency in which they earn their income
- Customers can secure the loan using standard residential property in Australia
- Investors can borrow up to 100% of the value of a new property (with additional security).
- Redraw available (subject to the Bank's approval)
- Customers may switch between currencies
- Substitution of security is also available (Australian security property only).
This is just one type of loan product available to Australian expats and foreign investors purchasing property in Australia. As we have direct access to many lenders we are able to structure you deal competitively and in accordance to your unique requirements. Please contact us to find out more.
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