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Leon
Leon, Solicitor
Category: Australia Law
Satisfied Customers: 42667
Experience:  BEc Dip Ed, Dip Law (SAB) MTax (UNSW)
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Since the new property buying laws investors have

Customer Question

Since the new property buying laws for foreign investors have come about, id assume the booming chinese market for australian property is left scratching their heads and looking for ways to dodge the FIRB (Foreign Investment Review board).
Lets say hypothetically i have a friend who is thinking of offering his services to help chinese property investors buy australian property without having to deal with the FIRB.
Hypothetically, If said chinese property investor was looking to acquire 5 million dollars worth of prime real estate in inner city sydney.
Could Said Chinese property investor lend 5 million dollars to an australian citizen under an interest free loan for him to then acquire the prime real estate in inner city sydney through a newly created business or a trust account.
Then once the property has been cleared and transferred to the business or trust account to be sold to the chinese property investors for a nominal fee of service (say 10%) $500000 and clearing of the 5 million dollar loan.
Submitted: 1 year ago.
Category: Australia Law
Expert:  Leon replied 1 year ago.
Good Afternoon
My name is ***** ***** I am a NSW Solicitor. Thank you for your question, and will do my best to assist you with your question.
You cannot dodge the rules. If you do and get caught the government will force the property to be sold.
The Australian Citizen would have to declare the income and where it came from and also obtain FIRB clearance because of the sum of money.
It is not that easy.
Even australian Citizens that get funds form parents overseas because they funds are foreign have to get clearance.
There is also an issue when the funds are transferred they have to get clearance for that amount of money for money laundering.
I hope this makes sense and is of assistance. if there is nothing further, thank you for using my services.
If I have missed anything, or you have any further questions please let me know
If there is anything else in the future please do not hesitate to ask.
Please do not forget to leave positive feedback.
Regards
Leon
Customer: replied 1 year ago.
So there is no way around the FIRB?
When dealing with the FIRB is it very strict guidelines so as to pretty much not allow any Chinese foreign investor the privilege of buying australian property? Or are there ways through it?
Expert:  Leon replied 1 year ago.
Good Afternoon
If the money is coming from Overseas or the purchaser is coming from Overseas you need to get approval.
They are strict and you have to comply with their requirements. The requirements are the same for all foreign nationals.
If you are not a resident in Australia you cannot buy pre-existing homes you can only buy off the plan or commercial.
If you comply with their requirements anyone can purchase.
Most developers that sell organise the approval as well to make it easier.
I hope this is clearer?
Expert:  Leon replied 1 year ago.
Good Evening
I'm just following up our discussion earlier this week and seeing whether there is anything else I can assist you with.
If I have missed anything, or you have any further questions please let me know.
If there is anything else in the future please do not hesitate to ask.
Please do not forget to leave positive feedback.
I look forward to hearing from you.
Regards
Leon

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