FIRB Changes - Good News?

Only recently I was told of the changes in legislation from the Foreign Investment Review Board (FIRB). I hardly checked their website regularly as their legislations do not change as much as The Department of Immigration and Multicultural and Indigenous Affairs (DIMIA).

The main changes for the legislation will benefit most, if not all of our church people. You're now eligible to buy established properties without any limits!! Previously, there was a $300,000 limit on established properties.

The definition of ‘temporary resident’ includes all foreign persons living in Australia who:

• hold a valid temporary visa which permits them to stay in Australia for a continuous period of more than 12 months (irrespective of how much time is remaining until that visa expires); or
• have submitted an application for permanent residency (PR), and hold a bridging visa which permits them to stay in Australia until their PR application has been finalised

Short-term visitors such as tourists, business people and those here for a medical procedure are not temporary residents.

Foreign students resident in Australia are no longer subject to a $300,000 limit on the value of an established dwelling purchased as their principal place of residence.

As long as your visa is more than 12 months, you can purchase properties without prior approval from FIRB. The only condition is, you have to stay in it and not for investment purposes. More information can be obtained from the FIRB website

It seems the Government is desperate in getting overseas funds in support the property market so it doesn't fall. Coicidentally, The Age reported that the Chinese are pretty much very supportive of this move!

A GROWING number of Chinese people are taking advantage of a relaxation in Australia's foreign investment laws to buy property in Melbourne.

Real estate agents in the eastern suburbs report that up to half the buyers this year have been part-time residents from China, Hong Kong or Taiwan, or Asian companies buying accommodation for their staff.

Auctioneer Robert Ding, of Jellis Craig in Balwyn, started holding auctions in both Mandarin and English in March. A fortnight ago a multilingual auction resulted in the sale of a $1.838 million house in Balwyn. More

Good news for property owners, bad news for property buyers. It means they have to compete not only with locals first home buyers with Govt. grants but also with rich overseas families!