Buying a House in Australia – What you need to know.
The Property Market in Australia, according to the latest findings on Property Wire, bottomed out in May 2012 and since then have started to improve. “˜Australian house prices are up 2.8% in the first quarter of 2013′ in every capital city apart from Adelaide and the general feedback from real estate agents is that this is a good time to buy. The Property Market in Australia, according to the latest findings on Property Wire, bottomed out in May 2012 and since then have started to improve. “˜Australian house prices are up 2.8% in the first quarter of 2013′ in every capital city apart from Adelaide and the general feedback from real estate agents is that this is a good time to buy. The great Australian dream has always been to own a home. For those planning to move to Australia or who have already moved and are now looking to buy, here's our guide to how to achieve that dream.
– Are you eligible to purchase property in Australia?
If you are not a permanent resident there may be restrictions that affect your ability to purchase a property. Go to www.firb.gov.au to see if you are eligible.
-What are the costs involved in purchasing property?
Most lenders will require you to have a minimum deposit of 20% of purchase price (some may allow a lower deposit but this will depend on your personal circumstances).
Stamp Duty is a general tax imposed on certain documents, including title transfers when purchasing a home and can add significantly to the cost of purchase. Prices vary between states with the higher the purchase price, the higher the accompanying stamp duty. To calculate these costs you need to search for the Office of State Revenue calculator in the relevant State or Territory.
Legal and Conveyancing costs should be included in your budget. To find a lawyer in your area go to www.findlaw.com.au
Financing Costs vary between lenders.
Other costs include Home and Contents Insurance, Moving Costs and Utilities, Ongoing Council rates and any Ongoing Strata/Body Corporate Fees. In South Australia you will also need to allow for the Emergency Services Levy.
– How to get a Home Loan?
The home loan market in Australia is very competitive providing you with a variety of different lenders with even more product options. An accredited mortgage broker will have access to a number of lender and product options and can save you time and money by presenting you with a variety of options that suit your needs. Pre-approval finance is recommended as it allows you to submit offers and bid at auction with confidence – pre approval is usually valid for 3 months whilst you search for your new home.
– What is the process for buying a home in Australia?
– Research the market – To search for properties look at www.domain.com.au and www.realestate.com.au . Ask real estate agents for their latest sales reports to gauge prices in your chosen area and look at sites such as www.myrp.com.au to see suburb profiles and recent sales data. You may also find the Where to Live section on the Aussie Relocation website helpful.
– Apply for finance – in most cases you will need to provide ID, evidence of income/assets and details of your current financial position.
– Many properties in Australia are sold by auction with a fairly short turn-around time from first inspection to auction – between 3-6 weeks. You should have finance approved prior to bidding at auction and a home/pest inspection is recommended in most cases. It is advised that you also request a copy of the contract of sale and have a lawyer/conveyancer check over it on your behalf.
If you are the successful bidder you will be required to pay 10% deposit immediately. Some properties are sold by Private Sale at a fixed price or with a starting price for offers to be submitted. In some cases properties are sold prior to auction and if not successful at auction are sold soon after with the most interested parties negotiating an approved price.
–Settlement can vary but in many cases a 10% deposit is required immediately with a 42 day settlement period. Ensure you have a solicitor/conveyancer to review the contract of sale before you sign anything.
Depending on your circumstances you may also be applicable for a grant such as the First Home Buyer's grant or a Housing construction Grant (in South Australia ).
There are a number of mortgage companies that are happy to help overseas buyers on temporary visas. Some banks and other lenders won't so it is worth shopping around.By Charlotte Sherston who moved to Sydney from the UK 18 years ago. She has worked for many years as a relocation consultant and runs a website that covers everything you need to know about moving to Australia called Aussie Relocation – www.aussierelocation.com