2022-08-26-莱坊-Canberra_Residential_Property_Guide_2022-23_16页_5mb

Canberra Residential Property Guide Summary

Core Content

This document provides an overview of living in Canberra, including its location, population, time zone, and weather. It also outlines the process of buying, owning, renting, and selling residential property in Canberra, with specific attention to international investors.

Key Information

Location

• Canberra is located inland on the East Coast of Australia in the Australian Capital Territory (ACT).
• It is the sixth largest capital city in Australia with 431,600 residents in 2021.

Time Zone

• Canberra operates under Australian Eastern Standard Time (AEST) from early April to early October.
• It switches to Australian Eastern Daylight Time (AEDT) during the rest of the year.

Weather

• Canberra has hot, dry summers with January being the hottest month.
• Winters are cold with July being the coldest.
• January has the highest daily sunshine with 10 hours.

Education System

• Schools in Australia are divided into primary (K-6) and secondary (7-12) levels.
• Independent schools are privately operated, while religion-based schools follow the government curriculum.

Student Visa Framework

• International students can apply for a Student Visa (Subclass 500) or a Student Guardian Visa (Subclass 590).
• Applications must be lodged online via an ImmiAccount.

Property Buying Process

General Steps

1. Due Diligence: Research the property and surrounding area.
2. Loan Pre-Approval: Confirm with lender and FIRB if applicable.
3. Property Inspection: Conduct an open house or private inspection.
4. Contract Review: Engage a solicitor or conveyancer to review the contract.
5. Deposit Payment: Pay a holding deposit (A$1,000) for private treaty or full deposit (10%) at auction.
6. Loan Documents: Sign and exchange contracts with the lender.
7. Settlement: Final inspection and transfer of ownership.

Off-the-Plan (OTP) Purchases

• OTP properties can be better priced than established ones.
• Deposit is typically 10%, with the remainder paid at settlement.
• Flexibility to make design changes before construction begins.
• Contracts should be reviewed by legal representation and include a 'sunset clause' for construction deadlines.

International Investor Rules

Eligibility Categories

• International Investor: Non-resident, not an Australian citizen.
• Temporary Resident: Holds a visa allowing 12+ months stay or a bridging visa.
• Offshore Company with Australian Business: Depends on the company's operations and assets.

Buying Restrictions

• International investors cannot buy more than one established dwelling as an investment.
• Can buy vacant land if residential construction starts within 24 months.
• Can purchase off-the-plan properties.

FIRB Application

• All international investors must apply to the Foreign Investment Review Board (FIRB) before purchasing property.
• FIRB application fee varies based on property value:
  • $0–$75,000: $4,000
  • $75,001–$1,000,000: $13,200
  • $1,000,001–$2,000,000: $26,400
  • $2,000,001–$3,000,000: $52,800
  • $3,000,001–$4,000,000: $79,200
  • $4,000,001–$5,000,000: $105,600
  • $5,000,001–$6,000,000: $132,000
  • $6,000,001–$7,000,000: $158,400
  • $7,000,001–$8,000,000: $184,800
  • $8,000,001–$9,000,000: $211,200
  • $9,000,001–$10,000,000: $237,600
  • $10,000,001+: $1,045,000

Estimated Total Costs for Buying

Ownership Costs

Standard Costs

• Land Tax: Annual tax based on taxable value of land, not applicable for principal residences.
• Council Rates: Quarterly or annual tax for local services.
• Owners Corporation: For strata-titled properties, an entity manages common areas and charges regular levies.

International Owner Costs

• Vacant Residential Property Levy: Charged if the property is unoccupied or unleased for 6+ months.
• Land Tax Surcharge: 0.75% additional land tax for international owners in the ACT.

Renting Out a Property

Standard Costs

• Property Management Fees: 7–8.5% of rent, plus GST.
• Utility and Service Charges: Electricity, gas, water; may be passed to tenants.
• Landlord Insurance: Recommended to cover damage, theft, weather, and rent default.
• Income Tax: Taxable on rental income, with deductions for expenses.

Tenancy Agreement

• A contract outlining the term, rent, and conditions.
• Bond is 4 weeks of rent, refundable if property is left in good condition.
• Termination requires proper notice and conditions.

Selling a Property

Standard Costs

• Legal Fee: Typically A$2,000–A$4,000, plus GST.
• Real Estate Agent Selling Fee: 2–3% of the property value.
• Marketing Costs: Budget for advertising and media.
• Capital Gains Tax (CGT): Tax on the profit from the sale, added to income tax.

Additional International Selling Costs

• Foreign Resident Capital Gains Withholding (FRCGW):
  • 12.5% for contracts from 1 July 2016 onwards with a value of A$750,000+.
  • 10% for contracts from 1 July 2016 to 1 July 2017 with a value of A$2 million+.

Contact Information

• Research: Michelle Ciesielski, +612 9036 6659, michelle.ciesielski@au.knightfrank.com
• Residential: Erin van Tuil, +612 9036 6699, erin.vantuil@au.knightfrank.com; Caroline Stanley, +614 021 70901, cstanley@gracosway.com.au

Additional Notes

• All costs are estimates based on official calculators and government guidelines.
• It is highly recommended to consult with legal and tax professionals during the entire process.