Lois1

Hi, can anyone offer any advise/recommendations for the current best mortgage deals? What is the average interest rates?

We are doing for our reccie in october and considering buying a property in Perth then with a view to renting it out for 12 months until we arrive permanently.

Any advise, views, comments etc greatly welcomed, good and bad !

Thanks !

OzJo

Bankwest are great for mortgages

MissyB

The deals are always changing - I recommend speaking to a mortgage broker nearer the time (can recommend Aussie Home Loans).

Lois1

thanks guys, is it something that can easily be done during our 3 week reccie??

Or do we need to source somethign from the UK before we go??

EvannTel

I spoke to a mortgage broker yesterday funnily enough.
He recommends the big 4 banks as they are better equipped the ups and downs of the market (and legislation), He writes up a lot of business with Westpac (who I happen to be with and am happy with) but currently the best is NAB.
Rates are around 7% plus there are fees.
Lots of calculators on the banks website.
Are you validating in Oct or just a reccie? If you're not PR, you find buying difficult without FIRB approval. A mortgage will also be damn near impossible too.
But in terms of time frame, with the market the way it is at the moment, 3 weeks will be fine - they are desperate to sell (and its easier than in England)

ozhappy981

We are with BankWest and the rate at the moment is 6.9%.

MissyB

Is it your plan to find and buy a property in Perth within the 3 weeks that you are over for? If so then I think that's gonna be a huge task and I'm not sure whether you would be able to secure a home loan from a bank or building society without having all the necessary evidence of your financial situation? Since the GFC the banks have become a lot stricter with lending - we had to provide heaps of statements, wage slips etc when we bought our place last year, and that's with my hubby being an Aus Citizen with a good credit rating and being with an Aussie employer for over 5 years.

Not saying it can't be done but I think it would be stressful - you'd probably be better waiting until you move here permanently...

If however you are just referring to arranging a consultation with a mortgage broker then yes that would be easy, you just call them and they send someone out to you (free of charge)

eugene43

Your a raving lunatic buying in oz before you even get there & at the hight of a propert bubble lunacy. If you are 100% going put your money in a oz high interest account but be arware if the £ returns you will lose out BIG TIME in all areas.

itxrd

Agree with Eugene. Its not like buying a bar of chocolate. Aussies are big on beauracracy, documentation and red tape. You'll just spend 3 weeks running around and realise it wasn't worth the hassle. Off the top of my head you'll need to:

1) Get a mortgage - means providing income (you are earning in UK so don;t know if that'll be okay - doubt it, your PR docs proving you are eligible to buy - have you got this?)
2) Find a place
3) Bid on it and pay all the charges
4) Win the bid
5) Find an agent to look after the place while you go back

It takes people a year to buy something here suitable. And thats if they are here looking at stuff every weekend with finance available.

MissyB

Not necessarily - It only took us about 6 weeks to find our property (private sale) and that was at the height of the property frenzy in Melbourne. We could've had a short settlement but we chose 12 weeks as we were tied into a rental contract. I think we were one of the lucky ones though...

EvannTel

Yeah buying a house here is easy.

1) Secure guaranteed finance from bank
2) Make on offer on property
3) Offer accepted
4) Appoint settlement agent
5) they do their thing
6) you in.

I did ours in 4 weeks from offer to in during the peak in 2007.
Of course there are exceptions but there need be with good agent and settlement co.

The property market here in Perth is wobbling at the mo. To say a bubble is about to burst is pure conjecture on behalf of some. It may happen, but then the current correction may suffice.
No one on here can tell you whats going to happen to the market and thats the only fact there is.

Lois1

We have got our PR and validating in October.

Reading between the lines, do you generally think we should hang on until we move permanently next year in anticipation that the property prices will go down? Hopefully by then the exchanage rate would increase in our favour by then too!

With the sale of our UK house, do you know whether we would get a better interest rate in Oz banks even taking into account the current exchange rate, or just find the best UK rates?

Thank you all for your help and comments!

MissyB

Personally, I would wait til a permanent move not because property prices might go down but because it could be too stressful and you'll be more likely to rush into buying any property just because of your time constraints (which you may later regret).

We looked at transferring some of our £ savings early 2009 to Aus to take advantage of the better interest rates here but the loss on the exchange rate didn't make it worthwhile so kept it in UK (and that was before it reached the 1.60 levels!).

Just a little observation - it seems like you are trying to take on too much too soon with your preparations for moving to Aus... relocating can be crazy enough without trying to buy a property in advance! Don't put yourself through any unnecessary stress, use your reccie trip to work out what areas you might like to live in (if you don't already know), meet with potential employers (sorry don't know your visa/work situation), set up a bank account etc.. (I never did a reccie trip so probably wrong about this!?).

Good luck

EvannTel

From the practical point of view, I don't think you'll get a mortgage within 3 weeks of arriving when you are going to back to UK. I'd wait as if you were to pull it off t will be hassle and I can;t see a benefit.

My personal view re housing, I dont think the market will go up and may even drop some more. I do not think there will be a bubble burst but if it does all the better for you.
Rate wise I dont think the pound will improve much against the dollar in the next 12 months so I'd stick in an Oz term deposit getting 7% or so.

Juts my thoughts.

spalen

You are nuts trying to do a mortgage in 3 weeks - but it may be achievable.

Taxation issues need to be looked at for renting + then living in - you'd be paying tax on that rental income at least in one country in the world.

You are double bonkers for wanting to buy on a reccie. You cant work out what areas are really like or where you really want to live in 3 weeks and once you are settled - you are stuck

Put the money somewhere safe -like 100% safe until you are out here and have looked around and can decide what to do.