Transfer Registration fee, which varies from state
to state; legal fees, which generally range between
AUD$500 and $1 200 (£250 and £600); mortgage
application; local tax, which again varies from
state to state; survey, which will cost in the region
of $500 (£ 250) and buildings insurance.
Some states will also demand that you have a
termite and pest inspection, and if you are buying
an apartment it is advisable to commission a
strata inspection, which determines whether
the building as a whole has had any structural
problems – or been subject to any administration
concerns. Australian taxes also vary depending
on which state you live in. However, if you spend
more than si x months in a year in Australia,
you automatically become liable for income tax.
Capital gains tax is payable on any property apart
from your principal residence, but the amount
you pay va r ies depend ing on you r persona l
circumstances.
But what about the legal stuff?
Foreign persons should notify the government and
cooling off period does not apply if you purchase at
an auction. Your solicitor will run local searches,
similar to those in South Africa, and will check
the title deed before you are able to complete the
transaction. Completion occurs six weeks after the
day of exchange.
Know the relevant fees and ta xes. As in any
countr y, buying a propert y in Australia is an
expensive business – on average you should budget
around five per cent of the purchase price to cover
the red tape. This is broken down into a Land
www.reimag.co.za
get prior approval to acquire an interest in certain
types of real estate. An ‘interest’ includes buying
real estate, obtaining or agreeing to enter into a
lease or licence, or f inancing or prof it sharing
arrangements. Regardless of value, foreign persons
generally need to notify the government and get
prior approval to take an interest in residential
real estate, vacant land or to buy shares or units in
Australian urban land corporations or trusts.
Foreign persons also need to notify for prior
approval if they want to take an interest in developed
commercial real estate that is valued at $54 million
or more – unless the real estate is heritage listed,
then a $5 million threshold applies. An exception
for developed commercial real estate applies to New
Zealand investors and United States investors, where
a $1. 078 million threshold applies instead.
Offshore Handbook 2013
31