foreigners buying under companies?

[TMNT]

Can someone basically give me the run down

Ive got a friend who is a foreigner and he has been told that, a lot of the Chinese are getting around the no foreign ownership rule by simply setting up a company and buying under the company name if they have the cash to buy outright?

Is this correct, or is the company under a trust or something more complicated

 

[Terry_w]

More complicated than that.

see the Foreign Acquisitions and Takeovers Act 1975
and the Foreign Investment Review Board https://www.firb.gov.au

An Australian company must have a resident director. All directors would need to guarantee the loan. And anyone controlling more than 15% of a company would have a substantial interest.

 

[coastymike]

Straight from the mouth of the foreign investment review board.

Q4.4.*I am a foreign non-resident, do I need approval to buy real estate through an Australian incorporated company or unit trust which has at least one Australian director or shareholder/unit holder?

Australian incorporated companies or trusts where 15 per cent or more of the shares or units are beneficially held by a foreign person are themselves considered to be 'foreign' and require approval.

 

[thatbum]

More stories about foreigners buying up all the property that didn't pan out.

 

[The Falcon]

I think I read somewhere that FIRB hasn't prosecuted anyone since 2010?

If so, there's the law, then there's enforcement.....and there are also lots of ways to skin a cat

As someone who has recently sold a PPOR to foreign money, and upgraded to a home in an area with limited overseas interest I'm not complaining.

 

[TMNT]

Thanks everyone,

I didnt think it was possible to unless you pulled a lot of strings

 

[Paul@PFI]

FIRB has more holes than a fish net. They can buy up any new builds...Look at Chatswood. The easiest hole is to allow their adult child who has residency here to buy the property (new or existing or even land). Or a nominee.

http://www.firb.gov.au/content/guidance/downloads/gn3_jan2012.pdf

Just in todays news:
http://smh.domain.com.au/real-estat...with-harbour-bridge-views-20140802-zzsix.html

Yet the $5m "buy a visa" scheme doesn't allow property investments ?? In NSW the Visa applicants have to buy a few million of junk NSW Treasury bonds that deliver a aweful return. Maybe the property play is just to even things up ? (And avoid land tax)