The third largest Canadian bank, Scotiabank has recently stated that Canada’s extended housing cycle is now beginning to turn. The report by Scotiabank economist Adrienne Warren declared Canada’s residential investment stalled in 2013 as affordability constraints tempered home sales. The report also suggested that the Canadian Housing sector will remain on a more subdued trajectory over the next several years.
So where are Canadians going to be spending their money when it comes to real estate and property investment?
Canada is now the 2nd Biggest Buyer of Australian Real Estate
While the Chinese still remain the NO.1 foreign investor in Australian real estate, Canada has shown a 100% increase and now ranks as NO.2 on the top 10 foreign investors buying up Australian properties. This list was recently released by the Australian FIRB (Foreign Investment Review Board).
Another report on predicted trends for Canadian Investors (conducted by Canada’s Investment Firm PWC PricewaterhouseCoopers), also suggested that Canadians were going to continue this trend into buying up available Australian real estate in the near future.
Australian Government Welcomes Canadian Property Investors
The Foreign Investment Review Board (FIRB) is the government entity responsible for assessing direct investment proposals by foreign investors. In order to help reduce compliance costs and to create a more streamlined process for Canadians (and other foreign investors) wishing to buy Australian Property, certain acquisitions and Australian property purchases will not require notification or prior approval by the Foreign Investment Review Board (FIRB). This is because certain acquisitions of particular Australian properties may qualify for an FIRB Exemption.
These FIRB Exemptions easily enable Canadians (and other foreign residents) to invest in the Australian Real Estate Market. And as a result of these exemptions being granted by the Australian Government, new dwellings account for the majority of Real Estate being bought in Australia by Foreign Investors – with many of these purchases being made off the building plans before construction is even fully complete.
How recent FIRB Rule Changes will affect Canadian Investors Wishing to Buy Australian Real Estate
The Australian Government have made some significant changes to the foreign investment rules which govern the purchase of residential real estate in Australia.
These changes were made in March 2009 and the more relevant points to note which will affect Canadian property investors include the following:
- Foreigners granted temporary residency in Australia are now allowed to buy an established dwelling as their principal place of residence. Temporary residents are also permitted to buy any new dwelling they wish – without needing to notify the government.
- If you are a foreign owned company, overseas trust estate or non-residential foreign person who is purchasing vacant residential land, then you must build within two years of that purchase date. Previously people in this situation only had only 12 months.
- A foreign company can now buy existing property to be used by their Australian based staff. The only clause is a foreign company must sell or rent the property if it’s vacant for more than a six month period.
- Developers are no longer limited to selling only 50 per cent of one development to foreign investors.
- Accommodation facilities such as hotels and resorts will now be treated as commercial real estate. Previously it was considered as residential real estate. (Click the following link to read more about FIRB Exemptions in Australian Resort Locations).
- Foreign investors are now allowed to purchase established dwellings with the purposes of redeveloping that premises so it will increase the number of dwellings. **Please Note: In this situation, a buyer must notify the FIRB about their intentions and the buyer must commence the redevelopment within 24 months of purchasing the property. The foreign buyer cannot rent out this existing dwelling before any redevelopment has been completed.
- Non-residents can purchase newly built dwellings – whether they be units within a complex or standalone houses – so long as the property has never been sold before.
Are You a Canadian Foreign Investor Looking to Purchase Australian Real Estate? East Coast Buyers Agents Can Assist You
East Coast Buyers Agents (ECBA) are specialists in finding, appraising and acquiring Australian properties for Canadian Foreign Investors. We can assist you in finding your next Australian dream home or investment property – in any location on the East Coast of Australia. East Coast Buyers Agents (ECBA) are exclusive Australian property finder and property buying experts – meaning we work exclusively for the property buyer. We also have extensive knowledge of all local areas on the East Coast of Australia so we are able to offer you the best Real Estate options available.
East Coast Buyers Agents can guarantee great results when it comes to acquiring the ideal properties you would like to purchase. Our very professional and highly skilled team are personally invested in your success so you can be confident East Coast Buyers Agents are working for your best interests only.
To contact your personal Buyers Agent → CLICK HERE ←
Resources for article – Canadians are Big Buyers of Australian Real Estate: “Boom Times are Over for Canada’s Housing Sectors” says Scotiabank