Join Australia's most dynamic and respected property investment community

Approval from FIRB - Foreign Investment Review Board

Discussion in 'The Buying & Selling Process' started by Tillie, 18th Jul, 2015.

  1. Tillie

    Tillie Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    248
    Location:
    Melbourne
    We received a stunning offer for our house, but it is subject to obtaining approval from FIRB within 20 days. The buyers are from mainland China, who are immigrating to Australia.

    I do not know anything about FIRB and their processes and how likely it is that the buyers will receive approval, so I was hoping if anyone here has been in the same situation or knows anything about this.

    REA is saying that it's done deal and approvals comes normally easily. But I am still nervous...:eek: So all the help is more than welcome...
     
  2. jaybean

    jaybean Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    981
    Location:
    Melbourne
    From what I understand the FIRB is more of a PR thing designed to placate the public, I don't think they really do anything. I think you should be fine.
     
  3. Be Developer

    Be Developer Property Developer Business Member

    Joined:
    19th Jun, 2015
    Posts:
    1,078
    Location:
    Australia
    @Tillie

    We deal with customers who requires FIRB approval.

    Its a more or less a case of ticking the box.

    You should be fine!

    Having said that, application approval has to have reasonable reasons and need a gun FIRB agent
     
  4. Tillie

    Tillie Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    248
    Location:
    Melbourne
    Thanks for the quick replies. They made me feel a little less nervous about the condition.

    The agent told us last night that they are dealing with FIRB all the time, because the most of the houses in this neighbourhood is sold to foreigners who are immigrating to the country and none of the applications have been knocked back. So it starts to sound more like BeDeveloper mentioned above, ticking the boxes exercise.

    Of course we would have prefered to get an unconditional offer, but buyers put so big carrot ($50k extra) on the table that we, greedy people, could not say no to that.
     
  5. Be Developer

    Be Developer Property Developer Business Member

    Joined:
    19th Jun, 2015
    Posts:
    1,078
    Location:
    Australia
    @Tillie

    Hahaha.... That 50 g is Worth waiting few days.

    Most FIRB approved client pay cash or have very low lvr..
     
  6. Tillie

    Tillie Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    248
    Location:
    Melbourne
    We thought so as well... $50k is a lot of money to us. ;) The agent also suggested that we do not stop marketing and inspections before the offer has gone unconditional.

    That was the only condition that they put on the offer, no finance, building inspection or other clauses...
     
    Esh likes this.