Unlock Your Dream Holiday Home: A Guide for Foreigners and Non-Residents on Buying a Second Home in Australia
April 6, 2023 • Co-Ownership 411
While there may be some additional hoops to jump through for foreigners and non-residents, nothing is impossible with the right knowledge and guidance. If you’ve been dreaming of owning a holiday home in Australia, this article will help you get a better idea of how to get started.
Foreign investors are required to seek 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.
If you’re a non-resident looking to buy a holiday home in Australia, it’s important to seek professional advice from a lawyer or conveyancer who is familiar with the relevant laws and regulations. They can help you navigate the process and ensure you comply with all requirements.
Foreign investors can generally only buy new or off-the-plan properties, not existing properties, unless they plan to use it as their primary residence in Australia. There are also restrictions on the number of properties foreign investors can buy, and they may be subject to additional fees and taxes.
As a first step, you can start by reviewing the FIRB requirements for residential real estate investments.
Selecting Your Holiday Home
Once you’ve received FIRB approval, here are some steps you might take to buy an investment property in Australia, although we strongly encourage you to get expert advice before making an investment decision:
1. Determine Your Budget
Start by determining how much money you have available to invest. This will help you narrow down your search to properties that are within your price range.
2. Choose The Right Location
Consider the location of the property carefully. Look for areas that are likely to see growth in the future, such as those with strong employment opportunities or infrastructure developments.
If you’ll be traveling to your Australian holiday home from overseas, you might want to consider other aspects such as proximity to the airport and other transport links.
3. Make An Offer
Once you have found a suitable property, make an offer to the seller. If your offer is accepted, you will need to pay a deposit to secure the property.
4. Conduct Due Diligence
Before finalising the purchase, conduct due diligence on the property. This may involve obtaining building and pest inspections, and reviewing the contract of sale.
Once due diligence is complete, settle the purchase of the property. This will involve paying the remaining balance of the purchase price and any associated fees and charges.
How You Can Own a Share of a Holiday Home
As an alternative to purchasing a whole property that you may only use a fraction of the time, you can now consider co-ownership. Co-ownership (or fractional ownership) means that you can enjoy the same luxurious home, at a fraction of the cost.
Kō is a fractional ownership company, offering an innovative solution that allows you to share in the costs of owning a holiday home while reaping the same benefits of a sole owner.
Each home is divided between up to eight co-owners, which will share house expenses based on the ownership percentage each holds, with all costs made fully transparent. Each of the eight shares is equivalent to 42 days stay each year. Our Kō homeowners are treated exactly as they should be – as owners.
On top of owning the home at a fraction of the cost, they also get to enjoy their holiday home without any of the day-to-day management. We offer a fully managed experience, with flexible booking so they can focus on enjoying their stay.
The first of its kind in the Asia-Pacific region, we offer an array of stunning holiday homes that span the area.
All Kō homes are carefully hand-selected by our team to ensure only the best homes in the most desirable holiday destinations are added to our collection. We are meticulous in our selection, so you can be assured that any Kō home you choose will be a first-rate holiday space.
Interested in Learning More?
Any information or advice contained in this blog is general in nature and has been prepared without taking into account your objectives, financial situation or needs. Before acting on any information or advice in this blog, you should consider the appropriateness of it (and any relevant product) having regard to your circumstances and, if a current offer document is available, read the offer document before acquiring products named on this website. You should also seek independent financial advice prior to acquiring a financial product.
All financial products involve risks. Past performance of any product described on this site is not a reliable indication of future performance.
Ko Homes Pty Ltd is the Investment Manager of the Ko Homes Trust. It holds a Corporate Authorised Representative authorisation CAR No.1298188 from Quay Wholesale Fund Services Pty Ltd (Quay) (AFSL No. 528 526). Ko Homes Pty Ltd also holds a Corporate Authorised Representative authorisation from Quay allowing it to provide General Product Advice.
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