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OZ: Buying a house on a 457??

OZ: Buying a house on a 457??

Old Feb 22nd 2002, 9:09 am
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Default OZ: Buying a house on a 457??

We are planning to move to Australia in May on a 457 work visa while we wait for the PR (Confident!!! Not). But if we get four years of fun in the meantime it will be worth it. My question is that someone has told us (without detail of course!) that it would be very prohibitive in terms of tax reasons for us to buy a house when we come over on a 457. Does this sound correct to you? Should we plan to rent until the PR comes through. I understand we have to apply to get permission to buy a house on a temporary visa, but don't think we should have too much issue as it will be our main residence. I will be getting tax advice when I get over to Sydney but I would appreciate any comment before so we can make arrangements where possible and to let me go after more information.

Thanks for any comment
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Old Feb 22nd 2002, 12:36 pm
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Default Re: OZ: Buying a house on a 457??

Sandra,

I too have researched buying whilst on a 457. I believe that you can buy with permission a previously owned house up to a maximum purchase price of 300,000$, as long as you have 12 months or more left on your Visa. That comes from the Foreign Investment Review Board website :

http://www.firb.gov.au/apply/residential.htm

Also, I've yet to find a lender that will loan more than 80% whilst on a 457 Visa.

As for tax implications, I don't know of any. Ourselves, we will be renting at first, probably until (if?) PR comes through. Then we should be able to get a 95% mortgage, no max purchase price, no restriction on house type, and possibly a grant as a first time buyer.
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Old Feb 22nd 2002, 12:54 pm
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Default Re: OZ: Buying a house on a 457??

Thanks - I really didn't think there was a tax issue - if I find different when I get over I will let the NG know. I nearly panicked there when you said $300,000 limit - this is for students only.

A maximum limit of $300,000 applies to purchases of established residential real estate by students.

Cause this limit would not let me buy much above a two bed flat where I intend to live in Sydney. We will need to be spending about 500,000+ for a decent 3/4 bed in the Hornsby area - anybody have any comments on our planned area of residency? - We are ok about the % thing - that should not be an issue.

What I will check is the first time buyers for PR - we might lose out on this if we buy before becoming PR, but then who knows how long PR will take 20 months (at the earliest) still leaves me in Dec/Jan coming up, a long time to rent.

Where are you intending to go 'pread' and have you got your work visa arranged?

Thanks for the response
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Old Feb 22nd 2002, 2:58 pm
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Default Re: OZ: Buying a house on a 457??

Sandra,

I just checked the website again, and you are right about the 300k limit for Students only - strange, I could have sworn I was told this was for all temorary residents. But of course, I can't find any mail about this, so I guess I'm going nuts...

I wouldn't worry about waiting for PR until you buy just to get the grant - it's 7,000$ for used houses, and 14,000$ for new. Not exactly a big deal, especially in Sydney... For me the bigger issue is with finding a 20% deposit. We now live in Munich where prices are atrocious, and gave up our house in the UK, so no big pay-day there. We're funding the move ourselves, and not shipping much in the way of furniture, so we'll have enough to pay out when we get there as it is...

I'm currently waiting for my 457 Visa pack to turn up, and the agency sponsoring me in Oz reckon it's a sinch. I'll believe that when I've got it in my grubby little paws... Assuming everything is OK, we hope to go mid-August...
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Old Feb 22nd 2002, 11:07 pm
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Default Re: OZ: Buying a house on a 457??

Hi Paul

I am on a 457 visa and I live in Sydney. I have been told by a number of banks that I would have to come up with a 30-33% deposit on any purchase I make and I would have to have 6 months repayments in the bank at any one time.

Were did you get the 20% quote from ?

Thanks alot,
Dave.
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Old Feb 25th 2002, 9:11 am
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Default Re: OZ: Buying a house on a 457??

Dave,

Sorry, bum steer there. I actually saw a 75% offer, not 80%. I found it on the Citibank website :

http://www.citibank.com.au/index_loans.htm
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Old Feb 25th 2002, 11:15 pm
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Default Re: OZ: Buying a house on a 457??

We are on the 457 visa and are in the process of having a house built (house & land package). Couldnt find an existing one we both liked!! The banks only criteria was that we put 20% deposit down, the total amount depended on amount of incoming money. We started looking around Normanhurst, Hornsby and we've ended up at Kellyville! Luckily got decent size land before the prices went up. Nice to here of other people in our situation, I've had no direct contact with anyone from UK since we've arrived!!!
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Old Feb 27th 2002, 8:19 am
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Default Re: OZ: Buying a house on a 457??

Do you know if the process for PR application whilst in Australia on a 457 is any different to if you applied from your country of residence ? Do you still have to get your qualifications recognised (RPL from the ACS for IT jobs), then apply to DIMA ? We intend to apply as soon as possible for PR while on our 4 year 457.
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Old Feb 27th 2002, 7:25 pm
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Default Re: OZ: Buying a house on a 457??

    >On 27 Feb 2002 03:23:01 -0600, pread <[email protected]> wrote:

    >Do you know if the process for PR application whilst in Australia on a 457 is any
    >different to if you applied from your country of residence ?

It's more or less the same. You will have to leave Australia to be granted your visa,
but could do this in NZ (although you can be in Australia when you apply)

    >Do you still have to get your qualifications recognised (RPL from the ACS for IT
    >jobs), then apply to DIMA ? We intend to apply as soon as possible for PR while on
    >our 4 year 457.

Yes, you need a skills assessment.

Jeremy
 

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