FIRB approval to purchase?

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From: Tony Lane


Hi,

Would like to ask for your expert advice. A friend of mine is currently in the process of
selling their home and have received an offer from a South African couple (who
have a "Business Visa"). Their terms are acceptable, however their
offer is subject to the "approval by the Foreign Investment Review Board".
Does anyone know:

1. How long the Review Board usually takes to approve this type of
application?
2. What are the requirements of the Review Board to approve such
applications?
3. What percentage of applications are approved by the Review Board?

Are there any other points to be aware of?

Assistance is greatly appreciated.

Thanks,

TL
 
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Reply: 1
From: Wei Ng


I helped a friend purchase a property late 2001. Not actually the paperwork, but going through the entire process of FIRB approval & all. It was very quick, 2-3 weeks from memory. Not half as long as some led us to believe.

The criteria was that the property needs to be under $300,000. You can away with a slightly higher figure; I suspect they review on a case by case basis. Her property cost $325,000. The lawyer asked us to provide reasons why she needed to buy a property worth over $300k, & it's whatever you can think of, basically.
 
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Reply: 1.1
From: Tai Melb


Hi,

I am not sure about $300,000 but
I know there are cases much more than that
figure..
Basically, there are few rules.
1. Must be PPOR
2. Visa is long enough (more than 1 year)
3. Re-sale to eligible buyers
(eg: permanent residence or citizens).

The process takes about 30 days to complete.

They could be the pain sometimes. However,
FIRB approves most cases.

If you are selling to overseas buyers,
that special condition is a must by law (even if the buyers dont want it).

Cheers,

Tai
 
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