Non Residents
Can non-residents invest in Australian real-estate?
Yes, non-residents who wish to invest in Australian real-estate must have approval from the Foreign Investment Review Board. There are conditions governing the approval for the following foreign investment property types:
- Residential Real Estate
- New Dwellings and Vacant Land
- Established Dwellings
- Commercial Real Estate
Are non-residents eligible for Ijarah Finance?
Yes! Ijarah Finance are proud to offer non-residents the ability to enter the Australian property market without having to enter into an interest-based mortgage. Applicants must already have approval from the Foreign Investment Review Board before making an application for Ijarah Finance.
Serviceability
A serviceability assessment will be undertaken to determine eligibility for Ijarah Finance. All documents must be translated by the National Accreditation Authority for Translators and Interpreters (NAATI).
Checklist for Non-Residents
- Approval from the Foreign Investment Review Board.
- Evidence of applicant’s deposit held in an Australian bank account is required.
- Appointment of an agent (other than Ijarah Finance) to act on your behalf.
- Proof of Identification (100 points). Such as Drivers license, passport, australian medicare card, etc.
- If refinancing, copies of last 6 months most recent bank statements.
- Receipt of independent legal advice, confirming borrowers fully understand terms, conditions and obligations of the loan and the mortgage.
- Applicant to obtain a current copy of their credit history report from their home country
- Evidence of sufficient funds to complete transaction held in an Australian bank account in the name of the applicant
- Receipt of translator certificate for applicant confirming they have read and understood the transaction documents.
Frequently Asked Questions
How long does it take to obtain Ijarah Finance as a non-resident?
The amount of time it takes for you to get approved will depend on several factors, such as FIRB approval processing, document verification and the serviceability assessment. On average, it takes between four and eight weeks to progress from the application phase to final approval.
Are there any restrictions on the type of property I can purchase?
Yes, there are restrictions on the type of property non-residents may purchase based on FIRB regulations. Generally speaking, non-residents may purchase new homes or unoccupied and undeveloped land, which they may then develop. The purchase of commercial properties is also generally permitted. However, FIRB regulations typically do not allow non-residents to purchase established homes.
What are the key differences between Ijarah Finance and a conventional mortgage?
Conventional mortgages charge interest, which is not permitted under Sharia law. Ijarah Finance provides an alternative means for Muslims to obtain financing in a Sharia-compliant manner. This is achieved through a lease-to-own model, whereby we buy the property and then lease it to you, the buyer. Instead of paying interest, you will pay rent with the option to buy the property at the end of the lease.
Can I purchase a property for investment purposes as a non-resident?
Yes, you are allowed to purchase a property for investment purposes. However, any properties you purchase must still comply with FIRB regulations. You most likely will not be allowed to buy an existing home for investment purposes. Instead, you will likely have to invest in a new home or a commercial property.
Do I need a local guarantor to apply for Ijarah Finance?
No, it is generally not necessary for you to have a local guarantor. However, each application is subject to a serviceability assessment. This means that in some cases, additional financial security may be required. This could include a guarantor or collateral.
Are there any tax implications for non-residents who purchase property in Australia?
Yes, depending on the territory in which the property is located, as a non-resident, you may be subject to additional land tax surcharges, capital gains tax and stamp duties. Generally speaking, it is advisable to seek independent tax advice before proceeding with a property purchase.
Can I use Ijarah Finance if I am on a temporary visa in Australia?
Yes, you can. Temporary visa holders may still be eligible if they meet all the other requirements. But keep in mind that approval hinges on the type of visa you hold, in addition to your financial stability and, of course, FIRB approval. Some visa categories may have additional restrictions.