Purchasing Property as a Foreign Resident I have recently received a lot of enquiry about the purchase of property in Australian when you are not a permanent resident or citizen. I thought I would share with you some advice from Youeil Shol from Time Home Loans about Foreign Acquirer Duty. I have been referring clients to Youeil for some time as he specialises in foreign purchaser lending and how to avoid paying this duty wherever possible. Feel free to email Youeil at email@example.com and tell him I sent you or contact Hunt Migration and I will organise an introduction if your looking to purchase property without your permanent residency.
“Hi Ken, How fast has this year gone? It was only 6 months ago that everyone thought the market was crashing and now it has well and truly picked up. We thought we’d share a bit of information on what we’ve seen come through the door in the last couple of weeks… Couples purchasing a property where one person is not yet an Australian Citizen or Permanent Resident (PR). If you don’t fit this category (Aus. Citizen or PR) then the Government classifies you as a “Foreign Purchaser” in which you then have to pay a 7% Foreign Acquirer Duty loading, in addition to stamp duty, on your share of the property’s ownership. For example: A purchase of $600,000 with 50%/50% ownership would have the following Government costs: $12,850 Stamp Duty + $192 Mortgage Registration Fee + $1,704 Transfer Fee + $21,000 Foreign Acquirer Duty Loading. How do our clients avoid this loading? We look at lenders that will allow both persons to be on the loan but only the Australian Citizen/Permanent Resident to be on the title”