If you are an overseas buyer, moving from overseas or you are an overseas resident looking to invest in Perth, Western Australia, you may need special assistance with purchasing a property.

KEY CONSIDERATIONS FOR THE OVERSEAS BUYER

In Western Australia, purchasing property is done through an Offer and Acceptance process (except for Auctions). This is different to many other countries and in fact, different to other states of Australia.

KEY APPROVAL FROM THE FIRB (Foreign Investment Review Board)

If you are an overseas purchasers or living in Australia on a non-permanent visa you require FIRB approval prior to finalising the contract for the purchase of a property. The contract can be made subject to FIRB approval.

WHAT IS THE FIRB

The Foreign Investment Review Board is an Australian Government authority. applications for FIRB approval must be lodged using their appropriate forms and paperwork.

Whilst there are complexities with FIRB, generally, FIRB approval can be obtained for new homes (never been occupied) and for land being purchased to build a house. FIRB approval can take between 30 to 45 days.

Although some exemptions do apply, generally the purchase of established homes by non-Australian residents or citizens are not normally permitted.

CAN YOU APPLY FOR FINANCE TO BUY YOUR AUSTRALIAN HOME

If you are from overseas or you have newly migrated to Australia, it is still possible to obtain finance to assist in the purchase of your property.

Whilst the lending criteria for overseas borrowers is typically stricter than the criteria for Australian residents, obtaining finance is possible and not as difficult as you may think.

As a rule of thumb, lenders can typically provide overseas borrowers with finance for up to 70% of the value of the property. However this depends on the criteria and policies of the lender, as some lenders will finance a higher percentage and others will finance a lower percentage.

The loan to value ratio (LVR) will also depends on the type of property your purchasing, your history with the lender along with other characteristics, such as employment history, and resident status.

If you are an overseas buyer looking to obtain finance, then getting the right advice is critical as the criteria between lenders varies significantly. For example, some lenders will also allow you to use your overseas credit history, while other lenders will not.

If you would like more information please complete the form below and I will be in touch to help you further with your enquiries.

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