Is Property Ownership in Australia Your Dream?
Australia’s vibrant culture, breathtaking landscapes, and unparalleled quality of life make it an attractive destination for many, including migrants and international students.
That’s not all! Owning a piece of this Aussie paradise can be your golden ticket to Australian citizenship. Let’s dive into why and how in this article.
Riding the Wave of Migration
Australia has a long and proud history of migration. Since its inception as a nation, Australia has welcomed people from all over the world, seeking a better life for themselves and their families. In recent years, there has been a significant increase in the number of migrants and international students coming to Australia.
According to the Department of Home Affairs, there were over 7 million overseas-born people living in Australia in 2021. This represents 29.3% of the total population. The top five countries of origin for overseas-born Australians are:
- United Kingdom (591,218)
- New Zealand (585,767)
- China (573,631)
- India (377,475)
- Italy (239,270)
Migration to Australia is currently at double the long-term average – Source: Migration Bureau
In 2021, there were over 600,000 international students studying in Australia. This represents a significant increase from the 200,000 international students who were studying in Australia in 1990.
This rise can be attributed to a number of factors, including:
1. Australia’s strong economy:
Australia has one of the strongest economies in the world, with a low unemployment rate and a high standard of living. This makes it an attractive destination for migrants and international students seeking opportunities for work and study.
2. Australia’s multicultural society:
Australia is a multicultural society, with people from over 200 countries calling Australia home. This diversity is a source of strength for Australia, and it makes it a welcoming place for migrants and international students from all over the world.
3. Australia’s education system:
Australia has a world-class education system, with many of its universities ranked among the best in the world. This makes it a popular destination for international students seeking high-quality education.
The University of Sydney is ranked 60th in the world in the latest Times Higher Education World University 2024 rankings.
The rise of migrants and international students in Australia has had a number of positive impacts on the country. Migrants and international students bring with them a wealth of skills, knowledge, and experience, which benefits the Australian economy and society. They also contribute to the cultural diversity of Australia, making it a more vibrant and exciting place to live.
Australia: More than Just Kangaroos and Koalas
Why is Australia such a ripper place to live and invest?
From stunning beaches to thriving cities, Australia has it all. The robust economy, top-notch education, and world-class healthcare add to the appeal.
Australia has a strong and stable economy, with low unemployment and a high standard of living. This makes it a great place to find a job and build a career.
Australia is a multicultural society, with people from all over the world calling Australia home. This diversity is a source of strength for Australia, and it makes it a welcoming place for people from all backgrounds.
It is a great place to raise a family, with safe neighbourhoods, good schools, and plenty of activities to keep kids entertained.
In addition to these reasons, Australia is also a great place for property investment. The Australian property market is one of the strongest in the world, and there are many opportunities to invest in properties, businesses and other assets.
Aussie Citizenship: The Property Ownership Pathway
Owning a property in Australia, particularly in regional areas, can significantly enhance your chances of achieving permanent residency and, eventually, citizenship.
The Australian government actively promotes property ownership in regional areas, recognising its potential to attract and retain skilled immigrants who can contribute to the economic and social development of these regions.
Specific benefits of owning a property in regional areas for citizenship applicants include:
- Skilled Regional Visas: Regional visas, such as the Skilled Regional (Provisional) Visa (subclass 489), prioritise applicants who demonstrate economic ties to regional areas, including property ownership.
- Points Allocation: To be eligible for Australian citizenship, you must have lived in Australia for a certain period of time. Property ownership in regional areas can contribute to points allocation under skilled migration programs, increasing your chances of receiving an invitation to apply for a visa.
- Pathway to Permanent Residency: When you own a property in a regional area, you are more likely to become involved in the local community. This can help you to build stronger ties to Australia, which can strengthen your citizenship application.
- Community Support: Regional communities often welcome and support new residents, providing assistance with settling in, finding employment, and integrating into the local culture
Foreigner vs Citizen: The Differences
There are some key differences between buying a property in Australia as a foreigner vs a citizen. These differences are primarily related to restrictions and taxation.
Foreigners who are not permanent residents of Australia are required to obtain approval from the Foreign Investment Review Board (FIRB) before purchasing residential property in Australia. The FIRB is responsible for assessing foreign investment proposals to ensure they are not contrary to the national interest.
Foreigners are also subject to additional taxes when purchasing property in Australia. Many states also implement a foreign property ownership surcharge. This only applies to foreign nationals, not expats. The surcharge ranges between 0.75% (ACT) to 2% (NSW).
Property taxes for foreign investors
Citizens and permanent residents of Australia are not required to obtain approval from the FIRB before purchasing residential property in Australia. They are also not subject to any tax surcharge. However, they may still be liable for stamp duty, which is a tax that is applied to the purchase price of all property in Australia.
How to Own Property in Australia
Liviti: Your Aussie Dream Team
At Liviti, we understand that buying property in a new country can be a bit like finding your way through a maze, especially for our international buyers.
Understanding the Australian property market is crucial. Liviti’s team offers comprehensive market insights and expertise, providing you with a clear understanding of various regions, property types, and market trends. Our aim is to empower you with the knowledge needed to make informed decisions.
We understand that each international buyer has unique circumstances. Our team takes a personalised approach, considering factors such as visa status, financial capacity, and long-term goals. By tailoring our solutions to your specific needs, we ensure a bespoke and professional experience.
Client Success: Nikita and Pratik
Consider the case of Nikita and Pratik, international clients facing visa constraints and limited savings. They were settling on their first home together but were concerned due to their VISA status & only having 10% of their savings held overseas.
With our guidance and experience, we were able to get them approved for a 90% loan & use the funds from overseas as the deposit. We also secured one of the lowest rates in the market for our international clients
With our expertise and knowledge of VISAs, we were able to secure our clients their first home within their given timeframe without any stress.
All in all,
Foreigners are drawn to Australia’s strong economy, multicultural society, beautiful natural environment, relaxed lifestyle, and government incentives for property ownership. Owning a property in Australia can provide capital growth, rental income, tax benefits, and a lifestyle choice in a great place to live.
If you’re ready to turn your Australian dream into a reality, Liviti is your go-to team. Contact us today to book a discovery session on how we can help you.