spuds

Morning All,

Was just wondering if anyone knew anything about buying property BEFORE getting your PR?

Is it impossible?

owieb

We're doing exactly that at the minute! We put an offer in on Saturday, got it accepted on Sunday and are now just going through the process of finance and FIRB approval.

If you do not have PR then you have to get FIRB approval, but this limits you to what you can buy. You either buy land and build or you have to buy a brand new home that hasn't been lived in.

If you have a temp visa that is valid for longer than 12 months, which is what we have, then you can buy an established house, but it still has to be approved and they can turn you down.

spuds

Thanks for that - sounds promising. I have a 12 month working holiday visa so hopefully that will qualify, I am not adverse to buying a new build, what exactly is FIRB tho and how do you qualify?

bondipom

WHV is valid for 12 months only. Why do you want to risk your money in an overbloated market with cheap rent and huge transaction costs? Then add in the exchange rate risks.

owieb

I would say that you won't get permission for an existing property, you have to have a visa that allows you to stay in Australia longer than 12 months.

Have a look at www.firb.gov.au

spuds

Thanks for the site Owieb, I will look into it.

Bondi, aren't we a bit narky this morning? No need to dash my hopes and blow the wind out of my sails quite so forcefully is there?

We are also waiting for our PR approval which might even be through within the next few months. We have been advised that the market is actually quite good at the moment ie prices are going up a bit like they have done here before they bottomed out. Therefore it would make sense to buy a property now, even with the view of selling it on in a couple of years - we made a small fortune on our UK house doing just this.

We can transfer all our money to our Oz bank acc for £10 so I can't see why we shouldn't pay in dollars. The pound is plummeting every day but at the moment you still get quite a few dollars to the pound.

Strike while the iron is hot, I thought, though it is just a tentative enquiry at this point.

Sorry if my ideas are quite so stoopid to you, just thinking aloud really and exploring all options!!

bondipom

Yes I am feeling shit this evening. Just bare in mind the risks you are taking and take good local advice. There is a lot of hype in the market which been rising up to 30% a year (just like the UK). Hopefully my narky remarks will make you think very hard and get you to speak to professionals.

The advice I am hearing is very mixed and certainly not the get property at all costs which I was hearing last year.

If I were in your situation I would keep the property in the UK and see as much of Australia as possible. You will then know if you want to live here and would also have an idea of where you want to live.

Your situation gives you a try it out chance which over 40% of the PRs that return to the UK probably wish they had.

spuds

Sorry you are feeling under the weather bondi but I think you misunderstand my situation.

You obviously have me down as someone who is coming to Oz on a wing and a prayer with no idea what to expect. My situation is quite different, we have spent lots of time in Oz over the years and I am pretty well convinced it is for me. We leave in a few weeks and I expect my PR to come through before my WHV runs out - I do not intend to come home!

As for property - we are renting in the UK at the moment with a nice wad in the bank thanks to selling at the right time and investing it seems to be a good move. Everything I have read so far suggests that the later you buy the more money you lose due to the falling pound. I am not so stupid as to invest in property or anything else without seeking advice.:scared:

owieb

That's pretty much what we did. We're over here on temp visas, waiting for our PRs to come through. We've got no intention of returning to the UK.

We've just sold a property in the UK and rather than leave the money sitting in a UK bank account we decided to bring it over and get it reinvested in a property over here before it gets too expensive to buy anything we like!

It's going to be great having our own place, rather than renting!

spuds

Ah Ha! The voice of optimism! Glad to know we are not the only ones mad enough to do this then!

Where are you and what visas are you on?

FiFi

sounds like a sound plan.. do you know where you want to buy.. I keep a watch on some of the property sites - aussiehome, sommersoft - know anymore ?

Also was wondering about lawyers / paperwork etc. don't thngs need real signatures ?

best of luck

owieb

We're in Perth on 457IE visas.

bondipom

emmahafryn

Sorry to assume your lack of knowledge of living in OZ.

There is great concern in Australia about the affordability of the current housing market. There are serious jitters regarding interest rates and whether they can be maintained at these historically low levels.

The inexorable rise that is currently happening cannot be guaranateed.

I don't know about your finances but you wil need a 20% to 30% deposit at least as a temporary visa holder. Even then I am not sure what the banks will think of lending to a WHV visa holder as by definition you are not going to be staying in Australia.

A $500,000 property will also attract around a $20000 in fixed charges (according to mortgage broker I spoke to last weekend).

I would also Speak to an accountant who knows about tax residency because as a WHV you will not be a resident for tax purposes. You might also be able to lose your UK tax residency. There is someone on here called Alan Collett who could advise you.

I would also speak to someone who knows the FOREX markets as the recent gains in the dollar could easily be reversed. Last year the AUD was at 2.7 - 2.8 to the GBP rather than the 2.5 it is now.

My initial response was harsh and quick but your eagerness to rush your money to high tax OZ needs a lot more advice.

I also remember from the ATO that WHV holders are supposed to address their bank accounts in their UK address.

As a WHV you will also have no tax free threshold. Check www.ato.gov.au for details.

I do think you are mad but you seem a bit over eager.

spuds

Bondi, apology ( I think!) accepted, and I do value your advice. We do not intend to borrow at all off the bank so don't think that is a problem and First Direct said no probs to HSBC Oz bank acc with Oz address (already have rental property) they are aware that we are on WHVs.

As I said, I don't intend to do anything without professional advice and it might never happen but I would be lying if I said I wasn't seriously considering it.

Thanks for your help. Why is life treating you so shite at the moment anyway?

tennisoz

Emma

Whereabouts in Melbourne are you moving to/thinking of moving to? I am from Williamstown and we bought a property there but as I am an Aussie I can't advise about buying property before getting PR - others seem to have covered that. If you have any other questions on Melbourne I might be able to help you. Incidentally, we live in Scotland now but will move back to Williamstown sometime in the future.

Good luck.

TennisOz