New FIRB Rules

New rules came into force on 1 December 2015. Fortunately for residential property there aren’t many changes. The big change is the fees. There weren’t any fees previously so these will come as a shock to some people.

Set out below are the fees applying to Foreign Residents.

Residential land

An interest in residential land valued at $1 million or less ($0 - $1,000,000): $5,000

An interest in residential land valued at over $1 million and under $2 million ($1,000,001 - $1,999,999): $10,000
 
An interest in residential land valued at $2 million and under $3 million ($2,000,000 - $2,999,999): $20,000
 
An interest in residential land – further $1 million increments: $10,000 per $1 million
 
It will be interesting to see if this has any impact on buyers. My initial thoughts are that at the upper range (over $1,000,000) there will be little impact. At the lower range, so those that are owner occupier and under $500,000, there will be a big impact. I suspect people may put off buying until they obtain their Permanent Residency Visa.

The rules relating to obtaining FIRB approval are the same. If it is a new property or vacant land then you will get it as a matter of course. For second hand dwellings the buyer needs to have an Australian Visa which is longer than a temporary visa. So all work visas irrespective of how much time they have on them will apply. Tourist or short term business visas will not allow you to buy a second hand dwelling.

For further information please contact Roland Taylor on 0417 605 185 or [email protected]

For family law help, please click here
Make your home ownership journey simple.
Statewide offers you complimentary access to the Brixn app, providing you real time updates and reminders as your progress through your purchasing journey.