The appeal of Gold Coast property with international buyers has been given a major boost following significant changes to Foreign Investment policy that will make it easier for overseas purchasers to invest in Australia, says a Gold Coast solicitor.

Hickey Lawyers partner Simon Chan said the changes, which have just come into full effect, would bolster the Gold Coast real estate industry in a tough economic climate.

“Basically, these changes broaden the potential market for those looking to sell property, which can only be a plus given current conditions,” he said.

“In this market, people are looking to make smart investments and for international buyers the Gold Coast and Australia could prove an attractive option due to the country’s appeal, stability and the weakened Australian dollar.”

The new Foreign Investment Review Board policy was announced late last year and introduced in two stages, with the first of the changes coming into effect from December 18, 2008, and the remainder from March 31, 2009.

Under the new policy, it will be easier for international buyers, people with temporary residency visas and foreign companies with business and staff in Australia to buy property.

“These changes will impact both those looking to sell existing properties and developers wanting to shift new stock,” said Mr Chan.

Mr Chan said developers were no longer restricted in the number of ‘off the plan’ sales they could make to foreign buyers. 

“Developers can now sell all the units within a project to international investors, provided they market the project both locally and overseas,” he said. 

“This is in stark contrast to the previous policy which allowed for a maximum of 50 per cent of stock to be sold to foreigners.

“The criteria to sell new stand alone homes to foreign buyers has also been eased. 

“In the past, developers were required to have concurrently developed a similar dwelling in order to sell one of those dwellings to a foreign buyer.  Now a developer of a single new stand alone dwelling is able to sell that dwelling to a foreign person. 

“The Foreign Investment Review Board will review this policy in two years.
 
“The definition of a ‘new dwelling’ has also been broadened.  It used to mean a new dwelling that has never been sold or occupied.  The definition now includes dwellings that have not been sold but may have been occupied for no more than 12 months.”

Mr Chan said a further significant change related to the purchase of property by foreign persons who hold a valid Australian temporary residency visa.

“Such visa holders are now able to buy second-hand dwellings to be used as their principal place of residence, single blocks of vacant residential land and new dwellings without having to obtain the prior approval of the Foreign Investment Review Board,” he said. 

“Foreign buyers who are not holding a temporary residency visa still require the prior approval of the Foreign Investment Review Board to buy vacant residential land. 

“If approval is granted, the buyer must commence continuous construction of a dwelling on the land within 24 months of FIRB approval as opposed to the previous requirement that construction start within 12 months of approval.

“Companies are able to purchase an unlimited number of established dwellings to accommodate their Australian-based employees, provided they sell or rent if the home is expected to remain vacant for more than six months.”