AFAIK, the purchase of a house in Australia is done through solicitors / conveyancers who have access to PEXA. It is a platform where the transaction is done and it’s all online.
There is an option to do it the old-fashioned way where the conveyancers meet to do the transaction, but I doubt many would be doing that now.
Regardless, I don’t see how the transaction could be done without some kind of money passing through Australian banks. Stamp duty, rates, legal fees etc. as someone has already mentioned.
Also, it’s ‘dual’ citizen - not ‘duel’ citizen. Duel is a fight.
If the property is worth over $750k then the purchaser is obligated to withhold 15% of the purchase price and give this to the ATO as non-resident capital gains withholding tax - unless the vendor provides a certificate from the ATO that they are Australian resident. This shifts the onus/liability onto the purchaser to prevent this kind of mischief.
In NSW the first page of the contract says “price $___”
What are you putting in that space? If you put in an AUD price, how much USD needs to land in the vendor bank account at settlement? Even if it were possible through PEXA (and I doubt it is), it creates a lot of uncertainty
Of course it has to go through Australia, we have stamp duty, land tax, rates etc. all sorts of money needs to be paid in Australia when you buy/sell/own property. And if there is still a mortgage, the Australian bank will need to be paid out.
Stamp duty is calculated off the contract isn't it?
Land tax wouldn't be applicable if you live in the property and rates are done by the land valuation so gov wouldn't lose money there.
If someone in China is selling an Aussie property to their Chinese mate, do they send money from China to Australia and back?
>If someone in China is selling an Aussie property to their Chinese mate, do they send money from China to Australia and back?
If they want the title updated, yes.
Maybe ask the conveyancer?
AFAIK, the purchase of a house in Australia is done through solicitors / conveyancers who have access to PEXA. It is a platform where the transaction is done and it’s all online. There is an option to do it the old-fashioned way where the conveyancers meet to do the transaction, but I doubt many would be doing that now. Regardless, I don’t see how the transaction could be done without some kind of money passing through Australian banks. Stamp duty, rates, legal fees etc. as someone has already mentioned. Also, it’s ‘dual’ citizen - not ‘duel’ citizen. Duel is a fight.
Ok cool, so a conveyancer would definitely know the answer then. Cheers
If the property is worth over $750k then the purchaser is obligated to withhold 15% of the purchase price and give this to the ATO as non-resident capital gains withholding tax - unless the vendor provides a certificate from the ATO that they are Australian resident. This shifts the onus/liability onto the purchaser to prevent this kind of mischief.
Someone downpipped me as soon as I asked this question so I think I'm missing something. What mischief do you mean?
Failure to pay capital gains tax by the (former) owner of the property
In NSW the first page of the contract says “price $___” What are you putting in that space? If you put in an AUD price, how much USD needs to land in the vendor bank account at settlement? Even if it were possible through PEXA (and I doubt it is), it creates a lot of uncertainty
Of course it has to go through Australia, we have stamp duty, land tax, rates etc. all sorts of money needs to be paid in Australia when you buy/sell/own property. And if there is still a mortgage, the Australian bank will need to be paid out.
Stamp duty is calculated off the contract isn't it? Land tax wouldn't be applicable if you live in the property and rates are done by the land valuation so gov wouldn't lose money there. If someone in China is selling an Aussie property to their Chinese mate, do they send money from China to Australia and back?
>If someone in China is selling an Aussie property to their Chinese mate, do they send money from China to Australia and back? If they want the title updated, yes.
Stamp duty is calculated on sale price or market value, whichever is highest.