The purchase of residential property in Australia by foreign investors is controlled by The Foreign Investment Review Board (FIRB) and requires an application being submitted at the point of purchase and an approval prior to becoming unconditional.
Foreign Investors cannot simply purchase any property and are obligated to buy new homes. Property qualifying as new can either be in the form of a house and land package (two contracts, one for the land and a construction contract), a townhouse or an apartment. A few developments have blanket FIRB approval but this is generally not the case.
Due to the volatility of the Rand and fluctuating exchange rate, cash flow for foreign investors is of huge importance. Beachsea Properties can advise on the best options, find the right property at the right price as well as take care of the paperwork, forex transfers, applications and details to ensure a painless process.
One class of property investment that makes sense for South African investors looking purely for a rand hedge is what is known as Dual Occupancy (Dual Occ) – essentially two dwellings on one site.
If one compares the performance of all residential property categories, a dual Occ property correctly geared will generate cash flow for the investor quicker than the others, and will require a smaller loan to become neutrally geared.
Mortgages of low Loan to Value Ratio (60% – 75% of property value) are available for foreign investors and Beachsea can assist in this department too as they have a finance broking arm to their business.
The Beachsea team execute this process effectively and efficiently and have been doing so for many years.
Why not contact us for an obligation free assessment?
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