How to Buy Property in a Foreign Land with the Australian Foreign Investor Mortgage

Are you a business-minded person and has set your eyes on investing in real estate? Australia is one of the best places to buy a real estate property. The country is beautiful and there are so many opportunities to make good business. Aside from that, getting approved for an Australian foreign investor mortgage should be fairly easy. If you do things right, you will soon have the money you need to buy a property.

How does this foreign investor mortgage work?

This is a mortgage product that will allow foreigners to have their own piece of Australian real estate. This is good for both parties. The investor will have an opportunity to own a property in another country and use it to make more money while Australia gets the chance to keep its housing market active. Investing in Australia is always a good thing for the government.

You can avail of foreign investor mortgage by getting approved the same way most borrowers do. But there is one difference. You need to get approval from the Foreign Investment Review Board (FIRB) first.  This is a branch of the Australian government that oversees all foreign investments. This is designed to regulate foreign investors and make sure that all properties purchased are going to benefit the country.

This is one of the challenges you need to overcome to become an owner of an Australian property. This should not be too difficult to overcome because you can always find ways to make the process easier. With the help of excellent mortgage brokers in Australia, you should be able to get an approval in no time.

You need to go through this process first. Unless you are a temporary resident who has lived in the country for more than a year or a citizen of New Zealand, you will need to get the go signal from the FIRB. Without it, you will never be able to purchase a property.

It is easy to get an FIRB approval. The only instances that can give you some difficulties is when you do not have a visa and you plan to purchase a residential property and if you are not buying in Australian dollars. Typically, real estate investors are the ones who are going to get approved by the FIRB and foreign investor mortgages easily.

You also have to know the limitations of this mortgage loan. When you are approved for a loan, bear in mind that you can only purchase the following:

-    New properties
-    Any vacant land meant for investment purposes
-    Previously owned properties that are for demolishment and renovation
-    Second hand properties are only allowed for foreign companies who are going to use it as accommodation for their employees

Basically, you can only purchase new properties for investment with the foreign investor mortgage. The only time you can buy a second hand real estate is when it’s going to be demolished and you’re going to build new dwellings. You still have to follow specific rules like constructing more dwellings than the property previously had and that you can’t rent out the property prior to demolishment.

The great thing about Australian foreign investor mortgage is that you can have the chance to have your own piece of real estate in a beautiful country even if you did not come from there. This is one of the awesome ways the government of Australia show people that they can be a land of opportunities.