Red_V_Roger

So it looks like the requirement for 457 holders to get FIRB approval is being removed...but the website says 'late March', which I guess is now.

I'm going to ring them on Monday to find out the situation as we have just signed for a house.

But are there any 457'ers at the moment buying a house that have been told if they still have to go through the procedure even though it will be be ending any time now?

Also our real estate guy said the contract could not contain a 'subject to FIRB' clause, but I know it has to be in there for them to grant it (if we still need to apply). Anyone any experience on this?

raven

Your estate agent is telling you pork pies you need firb approval in the contract even though its just a formality. remember you can have whatever you want in your contract so long as your sellers agree to sign it

ABCDiamond

I agree.
You could even have a clause that says subject to getting a pay rise

It may be a case that the sellor would refuse to agree to that clause though

RenShen

Hello there, this is something that we have just been through so I will tell you how we got on.

We knew about FIRB approval but somehow, between all the forms signed at the bank for the mortgage (Westpac by the way, no problems being on a 457), the real estate agent and our lawyer, the actual application for approval was not put in. What's more, FIRB approval was not put into the contract as a condition.

When I mentioned this in passing to the lawyer on the phone I could hear the panic in her voice. She said we could get into trouble for not putting it into the contract.

I must admit that I was a bit pissed off with all these "professionals" involved and yet this had been overlooked. There was no way I was going to let the lawyer bump up her fees by doing it for us so I said I would sort it out myself.

Went onto the FIRB online appications website and, like you, saw the message that it would be defunct by the end of Feb, mid March. However, the site is still up and running and there are no instructions otherwise so I put my application in online. That part was quick and painless.

I then had to go back into the online application to attach numerous scanned papers (visa, passport, contract etc). This part was really frustrating as their system just would not upload anything. After spending all day trying I sent them an email asking what I should do.

The next day, somebody telephoned me to say that part of the system is not working and that I should post the documents to them. She also said that our contract would need to be dissolved and a new one written to include FIRB approval. As it stood, the contract contravened the law and ultimately if we bought the house without approval they could make us do a forced sale.

As you can imagine, I was really upset about this. The people we were buying off had asked for an extension to the settlement date as the builders were on a go slow on their new home. We said no as we did not want to be at the mercy of their builders, thinking it could take months.

I knew that if we went to them to re-do the contract they would use this to get the new settlement date in and we would be hanging on for months.

So, when I posted the documentation off to FIRB I also sent a begging letter, slightly exaggerated, saying that if we tinker with the contract we will lose the house.

A couple of days later I got a call to say that they had granted retrospective permission and that I did not need to alter the contract. They were very stern about it though and I felt like I had been given a good telling off. Didn't care though as they had gived permission so I just sucked it up.

SO, don't listen to anyone that says FIRB permission is not a condition for the contract. Make sure that, until the rules actually change, you get it in there. It will save you a lot of stress.

Good luck, hope this has helped.
Ren

Red_V_Roger

Thanks that is great advice. I think that the Real Estate knew the situation and chose to ignore it. Hopefully we can get it changed during the cooling off period.

billymacker

If not tell them to stick the house and buy one else where plenty of house's for sale.

jayr

Presumably it is the responsibility of the buyer to let others know their residence (457) status.

I'm sure that real estate agents, even when knowing of the 457 status, will choose to ignore it with the hope of a slae.

We had a mortgage broker tell us not to include the FIRB approval clause, clearly advising us to break the law. He was obviously more interested in a succeful contract to pay his fees than he was in protecting our interests.

Red_V_Roger

What did you do?

RenShen

Yes, I made everyone involved in the process aware of our 457 status but as you say, they seem to go for what makes life easier for them, not what you actually need from them.

jayr

My wife was very keen to follow the adviser, I preferred to follow the law and insisted on the FIRB clause being included. This was when the market was still racing and there were three offers, one unconditional so we were not successful.

Still have not yet bought (and now have PR so need no FIRB approval). I suspect I saved us $50,000+ by not buying at the top of the market.

I will not be contacting the adviser again.

Deutschmaster

Have to admit I wouldn't want to buy a house while on a 457 just in case I lost my job and had to leave the country.

RenShen

Yes, well everyone's circumstances are different mate and as this thread is for people who ARE buying on a 457 visa, your answer is not really that helpful.

Deutschmaster

It's an opinion and not meant to be an answer

RenShen

Ok, well you are of course entitled to your opinion but I would perhaps think a bit more carefully where I stick it

Deutschmaster

So I don't upset those who get all flustered when they hear an opinion which contradicts theirs?

I'm considering buying a house soon but first I want my PR so there's no hassle of being kicked out the country should I lose my job.