Residential Real Estate for Redevelopment

Applications to acquire existing residences for redevelopment are considered on a case-by-case basis. Proposals approved under this category must provide for an increase in the housing stock, that is, an increase in the number of dwellings. An amount equivalent to a minimum of 50 per cent of the acquisition cost or current market value (which ever is the greater) must be spent on the redevelopment of the site.

* The existing residence can not be occupied prior to demolition and redevelopment.

* Where the property is at the end of its economic life (ie, derelict, uninhabitable) a proposal may be approved for the construction of one dwelling.

* To demonstrate that the property is uninhabitable and must be demolished, a valuation of the existing structures by a licensed valuer may be required. Photographs and other forms of evidence may also be required.

* Once construction is completed, parties notify the completion date and actual development expenditure.

* Once these conditions have been fulfilled, properties acquired under this category may be rented out, sold to Australian interests or other eligible purchasers, or retained for the foreign investor's own use.