Be wary if you are borrowing money from an overseas entity to
purchase an investment property which is not in the usual business
of lending money.
If you are an Australian citizen and resident of Australia for
tax purposes and you are purchasing an investment property (which
is not a new dwelling), and are borrowing a substantial proportion
of the purchase price from a foreign entity or foreign source which
is not ADI (i.e. authorised deposit‑taking institution) or a
subsidiary of an ADI, you may have issues with the Foreign
Investment Review Board (FIRB).
You would be purchasing what is referred to as "second-hand
property" and not a new dwelling and in order for the overseas
entity lending the money to obtain FIRB approval for a mortgage
securing the loan, one of the following options needs to apply:
