2517_Lon

Hi all
I was wondering if someone could please give me advice.
My husband and I are in the process of moving to Australia, but because of work commitments it won't be until next year.

In the meantime we have decided that instead of buying a property in London, we hope to buy a property in Brisbane. I'm going over to visit relatives in November so I thought it might be a good time to look.

Has anybody done this? What are the pitfalls?

And does anybody know if the UK banks will give a mortgage to buy a property in Oz, and if so how easy it is it?

Or should we just bide our time until then and buy when we land?

Thanks.

EvannTel

Great time to buy. Brisbane prices have dropped.....But shit time to get a mortgage.
Life eh?

steen1976

No chance getting a mortgage in the UK for it. And even if you could why would you if you - assuming you will be working and earning money here?

isgraham

2 - 3 % interest rates.

of course if the pound was to strengthen (due to rising interest rates) you might find repayments becomming rather extreme as you would get a double whammy.

2517_Lon

Thanks for this. It's confusing times. I think that we need a reality check and are trying to be too organised planning in advance.

Turban Explorer

There are a few variables:

a) Do you have Permanent Residency? if temporary you cannot buy without special dispensation.

b) When you transfer your sterling I expect you have to downsize your expectations quite a bit. It would tie you in to a market here which is just starting to come down from its bubble and converting currency when the UK is (probably) close to its weakest.

c) I think it's 99.999% unlikely you would be given a mortgage in the UK to buy in Australia. The lender would have no security over the asset.

Still Game

Why don't you use the time when you visit to really research and get a good feeling for different areas. Have a look in real estate offices for a rough estimation of prices, bearing in mind a year could show quite a bit of change. Have a look at the schools, if applicable, facilities, shopping etc.. At least then when you return with hubby you will know a wee bit about certain areas, certainly areas you may wish to avoid also!

bananalana

Really? Do you have links for information around that?

How do foreign buyers purchase property then? You know, all those chinese investors piling up their belts with properties in Australia.

And, I would like to know how that would go with being a kiwi seeing as technically you are on a temporary visa.

NickyC

Most 'foreigners' need permission to buy property in Australia from the FIRB. There are some exceptions (being an NZ citizen is one). All the details are on the FIRB website.

Turban Explorer

There aren't lots of Chinese investors buying properties in Australia any more. The government obviously decided its policies could produce a colossal housing bubble on their own!

killerhales

Getting FIRB approval to buy a residential property is pretty routine, more like a rubber stamp, we did this in 2006.

I agree with a previous poster that there is quite some risk in buying a property in one currency with money borrowed in another currency.

No-one knows which way it will go, but it is a fact that the A$ is historically strong and the pound relatively weak at the moment.

I just wouldn't go there; a big financial piece of your life outside your control.

Good luck