Recently, many readers have written to ask if they want to buy a home for their children studying in Australia, and they have a crush on the local second-hand house. Is it possible to buy second-hand houses in this situation?
Relevant provisions
First of all, let`s interpret the relevant law rules. Under Australia`s Foreign acquisitions and mergers Act 1975, "temporary residents" are persons living in Australia who meet the following conditions:
- Holding temporary visas that allow them to stay in Australia for more than 12 months;
- A permanent residence application has been submitted and a transitional visa is held allowing them to stay in Australia until the application is finally decided.
The website of the Australian Foreign Investment and Review Commission makes it clear that temporary residents can usually buy a second-hand house in Australia as their home in Australia and are subject to the following conditions:
- The resident must use the property as his main residence in Australia;
- The resident shall not rent the property or any part of it, and shall ensure that no one lives in the vacant room during the transaction period of the property; and
- The property will be sold within three months of the resident`s discontinuation of the use of the property as his main residence.
It should be emphasized that the temporary resident may not buy any second-hand housing in Australia for investment or rental purposes.
It can be seen that the holder of a student visa and work visa for more than 12 months is able to purchase a second-hand house in Australia, but it is necessary to use the second-hand house as a place of residence. Before buying a second-hand house, the buyer must submit a purchase application to the Australian Foreign Investment and Review Board and pay the corresponding application fee, and the second-hand house can be legally purchased after obtaining the approval letter. Please be sure to contact your lawer to prepare the corresponding materials before you buy the house.
So can a new house be purchased? The new house in Australia has no restrictions on the purchaser, and anyone can buy it, but the same thing, before purchasing, it must submit a purchase application to the Australian Foreign Investment and Review Commission and pay the corresponding application fee before obtaining the approval letter.
[化] matters need attention
So, what special attention should be paid to the purchase of second-hand houses by foreign students and workers in Australia?
First, second-hand housing competition may be more intense than new houses and uncompleted buildings. Generally speaking, uncompleted and new houses are priced for sale, while second-hand houses are generally sold in the form of bids or auctions, in short, those with high prices. At the same time, if the buyer submits an overseas purchase permit FIRB application but fails to buy the second-hand house, then the FIRB application fee is non-refundable. At present, the FIRB approval letter will indicate the maximum price limit for the purchase of the property, if the final bid exceeds the FIRB approval letter, there may be an additional fee. Therefore, more skills and preparation may be required when buying second-hand houses.
Second, if a student is ready to make a loan, be sure to contact his loan manager and lawer before buying, understand the corresponding policy and make the purchase. Because banks mainly focus on the value of house and the ability of borrowers to repay loans, it is difficult for banks to meet the income requirements of bank loans as full-time students in Australia. In particular, foreign students have only 20 hours of legal working hours a week in Australia. Therefore, foreign students must be prepared for second-hand housing before they can buy a second-hand house.
Third, after buying a second-hand house, foreign students must use it as their main home in Australia and must not rent or sublease any part of the property in order to obtain investment income. Strictly speaking, after buying a second-hand property, you must move in, even if the air lock is not in line with FIRB regulations.
Fourth, the property must be sold within three months of the expiration of the student visa or the student leave Australia or the suspension of the use of the property as its main residence. Generally speaking, if the student is granted an Australian permanent residence visa, he is free to use the property.
It is worth noting that students` parents can not buy second-hand housing without an Australian valid visa, but can only buy it in the name of their children. If you buy a new house or flowers, you are free to choose whether to write them in the name of your child or your parents.
