With Australian borders currently closed to immigration, I have been looking at my crystal ball to see what impact this may have on the property market, as now one in three Australians were born overseas. As part of my research, I found the following Jack Derwin of KPMG Business Insider Australia makes the following observations: https://www.businessinsider.com.au/australia-international-border-closures-cost-migration-2020-8
- KPMG has released a new analysis of the economic cost of Australia’s hard international border, calculating it would shave $117 billion from national GDP by the end of the decade
- By 2030, stalled migration would shrink Australia’s 2030 population by 1.1 million people and have cost every Australian the equivalent of $2,800.
- KPMG economists model that if just 40,000 skilled migrants were allowed to enter, they would produce a near $5 billion boost.
Unfortunately, I don’t have an economics degree; however, it’s not hard to see these sort of numbers impacting the property market, probably more in the medium to long term than the short term. The reason I believe the impact on the short term will be less is because of the large number of buyers still out there from the pre-stage four who missed out on purchasing a property.
However, here is a summary of what you CAN do and note, this article is general, and you should seek expert advice about your immigration circumstances.
- Are free to purchase property just like an Australian citizen.
- Is anyone residing in Australia on a visa that permits them to live here continuously for MORE than 12 months
- Can own property but need to apply to the Foreign Investment Review Board (FIRB) to purchase real estate in Australia
- Can buy no more than one established dwelling, which must be used as their principal place of residence.
- Face very few restrictions for new dwellings subject to FIRB approval.
- Are non-citizens who do not ordinarily live in Australia.
- Will normally be allowed to purchase new dwellings, but approval via the FIRB is generally required before each acquisition.
- There is no limit on the number of FIRB approved new dwellings.
- The Government’s policy is to channel foreign investment into new dwellings as this creates additional jobs and housing stock.
Buying real-estate at any time can be stressful but buying as a foreigner has its challenges. That’s where we can help you.