If a Queensland property is being purchased by a New Zealand citizen, it might be a good idea (for the Seller & the Buyer) if the Buyer obtains legal advice before signing any Contract.
Kiwis buying Queensland property
- Are you selling a Queensland property to a New Zealander?
- Are you a New Zealander buying a Queensland property?
New Zealanders are continuing to flee their country and relocate to south east Queensland. Whilst Chinese and Indians are leading the move to New South Wales and Victoria respectively, New Zealand lead the migration numbers to Queensland.
With this in mind:
- if family or friends from New Zealand are buying a Queensland property, do them a favour and recommend they get legal advice before signing any contract.
- If you are selling to a New Zealander, suggest that they get advice before signing any contract (to avoid the Contract failing because of the extra costs).
AFAD !
Foreign buyers now pay an extra 3% Additional Foreign Acquirer Duty (AFAD).
Example: Where a foreign person buys a $600,000 property, the duty paid is:
Transfer duty $20,025 ($12,850 when the property will be their home)
AFAD $18,000
Total $38,025
NEW ZEALAND CITIZENS
New Zealand citizens (not to be confused with New Zealand Permanent Residents) can avoid the $18,000 AFAD if they sign the contract in Australia.
If a New Zealand citizen signs the Contract outside of Australia, they have to pay the $18,000 AFAD.
A New Zealand resident (with a Passport from another country) will pay the $18,000 AFAD regardless of where they sign the contract.
HOW?
When New Zealand citizens enter Australia under a Special Category 444 Visa, they are usually entitled to stay here indefinitely as a Permanent Resident. The Visa is granted electronically when entering Australia, and is removed from immigration records when they leave Australia.
ANOTHER REASON FOR A SELLER TO TAKE NOTICE
Where you sell your property to a New Zealand Buyer who does in fact have a fixed budget, and you lower your asking price to seal the deal, and the Buyer pays the $18,000 AFAD; the practical effect is that the Queensland government is receiving $18,000 that might otherwise have ended up in your bank account!
READY TO BUY!
Obtain advice and clarify the law before you sign any Contract and commit to a purchase !
Disclaimer: The above is to be considered as general education. This is not advice and it is not to be acted upon without advice from a qualified professional who understands your personal circumstances.