Buying a house in Aus
 

We moved to Tasmania on a 457 visa 18 months ago and have rented for the time being. Now we are thinking of buying a house. Can anybody offer some advice on buying. Is new build better than older house? Can we qualify for first time grant?

Re: Buying a house in Aus
 

Are you still on the 457?

Re: Buying a house in Aus
 

Yes. We haven't converted our 457 over yet to a 187. Advised to wait till we have been here for 2 years as it is a lot quicker for PR.

Re: Buying a house in Aus
 

I would probably wait for PR before getting into a house purchase but there are a few members who know more about the ins and outs of buying here so hopefully someone can offer more advice :)

Re: Buying a house in Aus
 

I was told buying a house on a 457 is favourable to banks as you have a guaranteed job for 2-4 years. I don't know if this is true

Re: Buying a house in Aus
 

There is no guarantee of employment on a 457, and if you do lose your job you have 90 days to find another employer or leave Australia.

Re: Buying a house in Aus
 

A 457 does not mean you are guaranteed a job for 2-4 years.

Also a mortgage is normally 20+ years and I think a Bank would take a longer term view. People do get mortgages on 457 visas, but as above, I would not even consider buying a house on a temporary visa, way, way beyond my risk appetite.

Re: Buying a house in Aus
 

Buying a house on a 457 visa is possible..we did it and don't regret it but the other posts about the risks are true also. Main thing is that you need to get Foreign Investment Review Board's approval www.firb.gov.au before purchase.

Re: Buying a house in Aus
 

Hi There

Yes you can get a home loan on a 457 Visa. But there are some disadvantages or restrictions in doing so so it will depend on your personal circumstances and how much money you have to play with!

Basically most banks will lend up to only 80% of the loan value with one bank pushing this to 90% in limited circumstances on a 457 visa. You will need FIRB approval which is mostly a formality.

Additionally you are not normally entitled to the FHOG and any associated stamp duty concessions. This means less funds available and more expenses involved.

So a short example of what the above means.

Instead of a 5 % deposit you may need 20% deposit. This means on a
$ 500K purchase you will need $ 100 K.

Additionally no FHOG towards this and anywhere up to $15 K plus on stamp duties for the property purchase or more. Go to the Tas treasury site for exact calculations on the value of the purchase.

Then on top of this allow 3 K odd for additional expenses at least.

Total funds required without Loan Mortgage Insurance if you go over 80% in lending is $ 118 K aud at least. If you have the money this is fine - if not you may need to wait until you get PR.

PR allows you up to 95% lend as well as the Loan Mortgage Insurance being financed. You normally would pay little stamp duty on a lower cost home (each state is different) and get some sort of support as a FHOG.

So technically you could as a PR get into a 500K with a base amount of savings of $ 28,000 less any FHOG that you are entitled too. (LMI financed)

As to whether to build or not is a personal choice - Some states offer higher incentives as far as the FHOG goes when purchasing a new property or building one (only as a PR). It will also depend some what on whether or now you can afford to rent and also make additional payments towards land and building at the same time.

So what you do will depend largely on your financial circumstances in the first place.

I hope this helps Cheers John

Re: Buying a house in Aus
 

I know this might sound silly but does your credit history like experien and equifax follow you out to Aus for things like eventually getting a mortgage? This is in fact the one thing I am most worried about.

Re: Buying a house in Aus
 

No, it doesn't. Your overseas credit history is of no concern to Australian lenders. The system is quite different here - there is little concept of 'building a good credit history' You simply maintain a good credit history by not getting into strife :)


S

Re: Buying a house in Aus
 

Whilst it is the right of the lender to undertake any checks that they wish to to ensure that you are suitable they normally do not ever do checks on other countries.

The current credit system changed last week and now credit providers can record late payments better so they have a clearer picture of your situation. Therefore, if looking at a home loan in the near future ensure that all your payments on credit cards, loans, telephones are on time!!

I hope that helps cheers john

Re: Buying a house in Aus
 

telecoms and utilities are not included

Re: Buying a house in Aus
 

Thanks Amazulu - you are correct in your post - only repayments to a credit licence holder can be reported. What i was trying to point out is that you need to keep up to date with any financial commitments so your credit file is not affected by any information contained on it.

Failure to do so could result in legal proceedings being commenced such as by a telco or utility and this legal action is public information that is recorded on your credit file.

i hope that helps cheers john