Overseas Investor in Perth Australia

C

cow

Guest
Recently we have been granted Tourist Visas for a stay of 12 months in Perth. We are retirees over the age of 55.

We wish to purchase a property there for personal use for that period with a view to renting when we depart.

Our long term plan is to devide our time between Ireland & Australia staying six months periods in each Country.

We have searched the net re possible visa options and are unclear of the response.

One suggestion is that we have to have sponsorship from the WA, which requires a bond of $750.000 to be held for 4 years and a further lodgement of funds in a $750,000 bank account. This seems crazy! Can anyone advise if they have recently gone down this path.

What would the CGT be in the event of sale.
 
High There

Still hopeful that some individual has experience out there on the path to buying property in Perth. The iniall and exit costs etc..
 
Hi Moller,

In answer to your question, no we are not. We are about to visit Perth on 12 month Tourist Visas.

Rather than rent we would like to invest the funds we have set aside into a property.

I understand that we can purchase a new property but the project seems like a minefield, what with stamp duty, tax on possible rental income, cgt at sale of property & possible implications at this end as well

At present there is a property boom there but theres no guarantee that that will continue.

Perhaps it might be more astute to consider purchasing closer to home, any comments would be most welcome.
 
Re: Overseass Investor in Perth Australia

How much is an average house in Perth W.A. now ? I remember visiting there in the eighties and they were really cheap, cheaper than property here at the time even, and yet they were spacious and a lot had snooker rooms etc. I suppose part of the reason is that they had so much land, and land was cheap.
 
cow, I've just merged three threads into this one.
mollser, please just hit the button instead of starting a new thread to reply to another one.
 
Hi, I am an Irish citizen currently resident in Perth and may be able to give you some pointers. Here are some off the top of my head, feel free to ask me some detailed questions if you wish.

If you have family in Perth you should be applying for something stronger than a tourist visa for 12 months, as I douth you would be allowed purchase on this visa too easily. The Australian Immigration dept get retirees to lodge large sums of money so that to ensure you are not a burden on them in your old age. Lot of Visa types available you just have to get the right fit for you, plus the visa application procedure can be a long winded and slow process.
Property prices in Perth yes have increased significiantly in the past few years, this is mostly fuelled by the Resource sector boom in Western Australia and I think the state is very close to full employment, however mortgage intrest rates are at 7% and possible rising further, fuelled by inflation. Yes you can get much larger houses here as the block (site) sizes in the older suburbs are usually 500 to 800 to 1000 square metres.

Rent for property though has not kept pace with the rising house prices and rent yields are quiet low. With regard tax, hefty stamp duty on house purchases, plus cgt (not sure of %) when you sell, plus taxed on rental income, not sure of your situation, but most people who invest here negaitely gear and so get kick back from the Australian tax dept. You would also need to be midful of the double taxation agreement that is in existance between Oz and Ireland, as I say this is just top of my head stuff, feel free to post me more questions.
 
Newyork
Thanks for all the info, in your post you menioned that we should consider an alternative Visa.

Can U suggest a more suitable Visa?

We do have relatives living in Perth.

We have contacted Firb in Oz by phone and they have confirmed verbally that we would be eligible to apply under our current Visa. However when
we trolled through their web site we are unable to find this information in print.

The problem for us is that if we process our application under our current Visa we must placed a deposit, on a which must be new build. My Sister is currently looking around for something suitable. in North Perth. To go to all this bother and then to be refused would be extremely dissappointing..

Any further comments or advice would be most welcome
 
Overseass Investor in Perth Australia

I have further information which I would like to share & perhaps gain addititonal knowledge before submitting our application.

Prices for a typical 4 bed 2 bath, 3 recept. would be Oz$600,000, in a relatively good location. That would transalte to about €375,000.

There does not appear to be an agreement with Ireland on Taxation.

Negative gearing would not apply as we would not be full time residents of Australia.

CGT calculation is done quite differently than in Ireland. Calculation is based on sell price less deduction for personal usage, less rent period, less all costs i.e. rates, fees etc. The net sale price is then caluclated for CGT using a band system similar to PAYE Income Tax. The first $30,000 @29% next$? @ 32%, next$? @ 48%.

Taking that into consideration plus all other expenses and allowing for a very modest growth of 8% the return is very attractive.

Any comments????
 
Re: Overseass Investor in Perth Australia


That's gauranteed minimum growth is it?
 
Re: Overseass Investor in Perth Australia

There does not appear to be an agreement with Ireland on Taxation.
Click to expand...

If you mean there is no double tax agreement with australia see [broken link removed]

You also have to pay tax on rental income see [broken link removed] in particular how are foreign rents taxed?
You also have to pay tax due in Australia on rental income if any according to the rules set in Australia. You can offset any tax paid in Australia against the tax due in ireland

You also have to pay CGT on selling to irish revenue. Again you can offset any tax paid in Australia against the tax due in ireland.

You need to know what these are and factor them into your calculations. Use a realistic guess if not known.
 
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