Forum Replies Created
- ErikH wrote:
Barbara, there is no issue buying property as a non resident. We're non resident investors and since 2004 we have built up a portfolio of 10 properties (whilst living overseas but migrating in the next couple of years).
Some things to keep in mind:
– your purchases will be regulated by the Foreign Investment Review Board (http://www.FIRB.gov.au) and it basically says that as a non resident you can only buy new not previously owned, not previously tenanted properties (houses and units) or you can buy land but then have to build on it (and add a minimum value) or you can buy a existing house but then again you have to add value or increase the number of dwellings.
– however if you are a 457 visa holder I think Paul was right in that the FIRB will allow you to buy your own home, but then the interest is not tax deductible
– as Richard says your maximum LVR will be 80% as a non resident, once you are a permanent resident you have access to higher LVRs (if you want that)
– if you intend to settle in AU longer term and want to buid a significant property portfolio, think about your holding structure. We initially bought in our own names (didn't know any better) but are now using different structures. Structures is something you need to discuss with a solicitor and accountant as each individual situation needs to be assessed carefully. You can setup a structure with a company acting as the trustee of a trust and in that case you can avoid FIRB limitations, but I would say that is not something you'd want to do just yet.My recommendation?
First read some books, like Steve McKnight (0-130 properties in 3.5 yrs) and Michael Yardney (How to grow a multimillion property portfolio in you spare time). Together I think these would give good insights in property investing and the key approaches, i.e. cashflow positive, negatively geared growth property, adding value etc.
Do some research on key growth areas, lots available on the web. Sometimes it is worth paying money for good research!
Don't wait 2 yrs – if you have the money buy your first investment property. If you wait 2 yrs you have lost the opportunity of 2 yrs of growth and even with a conservative growth of 7% over say $400,000 you're talking about close to $60k… that is money you could then use to fund a next investment…
Good Luck!
Erik
Hi Erik,
My situation is similar to Barbara's. Me and my husband have been in Australia now for nearly 1 1/2 years on our 457 visa. We love this country and will definately apply for our permanent residency in the next couple of months. We have some funds saved up and am thinking of investing in properties.Are you saying that if set up a structure with a company acting as a trustee, we will be able to purcase properties for investment purposes?
Thanks,
EK
