KUALA LUMPUR – Sept 27, 2016: A property expert has told The Mole that those interested in investing in real estate in Australia must follow its foreign investment rules to avoid any problems after acquisition.
What must be remembered is that every country, including Malaysia, imposes rules as a form of control on foreigners investing in property.
The Australian government recently made a divestment order of foreign-owned residential properties found to be in breach of the law.
The divestment involved buyers from several countries including Malaysia, Canada and China in Victoria, New South Wales and Western Australia.
According to an article in Nine.com, Australia’s Treasurer Scott Morrison had said that the affected foreign investors either bought established residential properties without approval from the Foreign Investment Review Board (FIRB) or had its approval, only for circumstances to change, thus breaking the rules.
Commenting on this, Huttons OneWorld co-founder and property negotiator Chua Chiou Peng, who previously invested in Australia, assured that it is safe for foreigners to buy properties there provided they are well-prepared.
Buyers must thoroughly prepare before buying, by doing enough homework on the property, studying the developer’s background and what it has to offer and adhere to the country’s regulations and approval.
Chua also reminded that foreign investments must be done through the proper channels.
For instance, one should opt to assess a property through online on real estate websites, consult real estate agencies or assess the properties showcased at an exhibition.
A buyer should also consult a proper real estate agency that collaborates with the developers in Australia. This will make it easier for buyers to appeal to the government for FIRB approval.
According to Chua, the Australian property sector is the most stable compared to other countries.