Understanding Real Estate Investment for Vietnamese Citizens in Australia

Eligibility for Vietnamese to Buy Property in Australia:

• Visa Requirements: Vietnamese nationals do not need any specific type of visa to buy property in Australia. A valid passport is sufficient for permanent property ownership.
• Types of Properties Eligible for Foreign Investment:
  • New properties in development projects: There are no additional conditions.
  • Vacant land: You must agree to construct a new house within four years.
  • Existing properties: Approval is granted if you agree to demolish and rebuild one or more new properties.
• Existing homes: These can only be used for residential purposes, not for investment or business. New constructions can be used for investment purposes, such as renting, but must be purchased directly from the developer and not previously used within 12 months from the listing date.
• Fees and Approvals: Buyers must pay certain fees for approval by the Foreign Investment Review Board (FIRB). These include legal fees, transfer fees, stamp duty, and property management and operation fees, which vary by state.

Procedures and Process:

1. Reservation Deposit: After placing a deposit on ClickClick, you are required to transfer AUD 1,000 to a designated account. This action reserves the property, preventing others from purchasing it while you complete the buying process. A receipt for this deposit marks the beginning of your purchase.
2. Sales Contract Execution: Following the deposit, the sales contract will be sent to you or your legal representative within three days. This document outlines the terms, conditions, and legal obligations of both buyer and seller. It is crucial to review this contract with your legal advisor, sign as instructed, and return it for the seller's signature to agree to the deal.
3. FIRB Approval: Non-residents and foreign investors must obtain approval from the FIRB. This step is mandatory to ensure you are eligible to purchase property in Australia and comply with regulations. Assistance from a legal representative or administrative contact is recommended to navigate this process efficiently.
4. 10% Deposit Payment: Upon receiving FIRB approval, the next significant step is to pay the 10% deposit of the property’s contract value, minus the initial AUD 1,000 deposit. This payment secures your commitment to the purchase and strengthens your position in the process.
5. Unconditional Contract: Once the deposit is received and all conditions of the deal are met, the sales contract becomes unconditional. This signifies the formal and binding agreement between you and the seller, transferring ownership of the property to you upon completion of payment.
6. Closing Process: Closing represents the end of your property purchase journey, where ownership officially transfers from the seller to the buyer. This stage requires precise coordination and understanding of the steps involved:
   • Preparation: Financial and legal teams, proficient in real estate transactions, will guide you through the final stages, ensuring all legal and financial requirements are met.
   • Pre-Closing Communication: A pre-closing notice will be sent to remind you that the purchase is nearing completion. This is also a time to consult with recommended financial advisors and legal representatives if needed.
   • Final Review and Confirmation: A thorough review of the property, finances, and legal documents is conducted before closing. Communication with your financial and legal representatives is crucial at this stage to confirm readiness for the closing.
   • Closing Day: On the designated day, all parties involved meet to finalize the transaction. This includes payment of the remaining balance, transfer of the property title, and handover of keys.
   • Post-Closing: After closing, ensure all related documents are accurately stored and any necessary registrations are completed. This includes updating the property title and securing your legal ownership.
7. Key Collection and Property Handover: After a successful closing process, arrangements will be made for you to receive the keys and any related property package from the seller or as agreed with your lawyer.

Is Buying Property Online in Australia Safe for Vietnamese?

The purchasing process is not direct between the buyer and the developer as in Vietnam; instead, it is regulated by the Australian government, requiring both parties to have legal representation to safeguard the contract.

All financial transactions must go through the developer’s lawyer’s Trust Account. The lawyer ensures the legality of the project before funds are disbursed to the developer.

The Australian government permits online signing of sales contracts through digital signature software, legally equivalent to hard copies, allowing for remote signings.