Australia property law

What happens if I can’t settle on my off-the-plan purchase?

Are you having trouble getting finance before your settlement date?

Is there a risk of failure to settle on your property?

The tightening of foreign lending by banks, the crack down on foreign investments by the federal government and the boom in apartment construction has resulted in the perfect storm of increased settlement risk.

While the demand for Australian property is still strong, it is prudent to be aware of the very real risk that it might be difficult to complete purchases in the current lending environment.

What will happen if you don’t settle?

Changes to Foreign Investment Rules You Need to Know

What’s happening?

The Australian Federal Government has been cracking down on loop holes in foreign investment with stricter foreign investment rules in place since December 2015. Under the new regime, the penalties for breaking the rules are tough. Compliance to the new rules and its enforcement has been strengthend with the ATO aiming to cover more than 600 million transactions annually.

So how do you avoid getting on the wrong side of the ATO?

Do the new rules apply to you?

The Foreign Investment rules apply to ‘a foreign person’ who is defined as someone who is not ordinarily a resident in Australia.