REAL ESTATE INVESTMENT IN AUSTRALIA

REAL ESTATE INVESTMENT IN CoNTENTS FoREWoRD 4 oVERVIEW oFThEAuSTRALIAN LEgAL SySTEM 6 PuRChASEAND SALE oF REAL ESTATE 7 INVESTMENTVEhICLES 24 Key selection considerations 25 Types of corporate entities 25 LEASES 28 Forms of ownership 8 Regulation of foreign investment 8 Investing in Australian real estate 9 Foreign government-related investments 10 Process 10 The contract 11 The due diligence process 11 Title insurance 13 Closing and registration 13 Financing of commercial real estate 13 TAxATIoN oF REAL ESTATE INVESTMENTS 14 Overview of the Australian taxation system 15 Tax benefits of owning Australian real property 16 Types of entities 17 Importance of treaties 18 Investment through loans 18 Taxation of equity investments 18 Direct equity investment 19 Equity investment through an Australian corporation 19 Equity investment through a foreign corporation 20 Equity investment through an Australian partnership 20 Equity investment through an Australian Managed Investment Trust 20 Goods and services tax 20 State and local tax considerations 22 Understanding leases 29 Commercial leases 29 Residential leases 29 Registration 29 Basic terms of commercial leases 29 Additional concepts in commercial leases 30 Retail leases 31 CoNSTRuCTIoN 32 Contracts 33 Infrastructure in Australia 33 Obligatory requirements 33 Liability 34 Insurance 35 Security of payment 35 Handling disputes 36 ENVIRoNMENTAL REguLATIoNAND DEVELoPMENT APPRoVAL 37 Planning laws 38 Heritage 38 Environmental laws 38 Climate change policy and regulation 39 Energy efficiency and green buildings 39 REAL ESTATE FINANCINg 40 Financing terms 41 Security 41 Mezzanine finance 41 uSEFuL SITES 43 4 | DLA Piper FoREWoRD Real estate markets globally have been severely affected by ongoing unprecedented economic turmoil, particularly in Europe and the United States.This is expected to continue.The Australian real estate market has, in this time, emerged as a destination of choice for global real estate investors seeking a safe haven in a well-regulated and highly transparent growth-oriented market for doing business. Uniquely, across most sectors, Australia has performed well over this time and is widely viewed as a stable market offering discerning foreign investors historically favourable pricing. Compared to many of their home markets, Australia offers investors exposure to one of the few economies, globally, to be on a growth trajectory. This recognition has led to an increasing number of new foreign investors entering the Australian real estate market, to the point that foreign-sourced capital is now the dominant source for Australian real estate investment. As a well-regulated, stable and transparent market, Australia offers a platform that allows new foreign investors to embrace the globalisation of real estate capital with confidence. As global capital flows shift from low-growth markets and sectors, we at DLA Piper are where our clients want to be. This legal guide demonstrates our commitment to ensure international clients access the intellectual property, seamless service and local market knowledge of our unique global Real Estate Group. As with all markets, investors must have access to reliable and easy to understand sources of information. This guide is specifically designed to assist foreign investors in gaining a quick understanding of the laws and practices associated with investing in Australian real estate. Les Koltai Head of Real Estate, Australia DLA Piper Real Estate Investment in Australia | 5 ... - tailieumienphi.vn