Jim&Sus

Hi guys,

I've tried to find the answer to this on websites, but seem to go around in circles (probably because it isn't an option!).

Here goes..... Is there any possible way of getting a mortgage whilst on a Student Visa (for 2 yrs), or would we have to wait out the 2 years first, apply for PR and only then be able to buy a property? We'd have some equity from our house sale, so would be able to put sizeable deposit down. I heard that it may be possible on new builds?

If it's not possible, can someone in the know please tell me (waiting for stampede ) so that I can resign myself to renting for the first 2 years!

Susan

vb2

I dont really know the ins and outs but i am sure someone will be able to advise you, nevertheless, sizeable deposit or not, a mortgage can only be obtained if you have income to pay it, unless you buy outright. If you can prove your earnings and you earn enough (i believe is 2.5 times salary in oz) then i cant see why not.

good luck

vb2

TracyAnne

Hi Susan,

We too are on a student visa, and are fortunate enough that we could buy a property outright here in Melbourne. The only problem that I forsee with getting a mortgage is that with the limited student work rights your income is not going to be very high, this may affect how much of a mortgage you will be able to get. Do you intend working as well as your husband, as he can only work 20 hours which is not going to pay much of a mortgage, with all due respect.

Tracy

rcladin

Why buy property now? the market in melbourne is flat all last year showing only very minor rises on average and sydney showing drops of 5% last year, however perth and darwin are a different story.

I would hold off until market starts to pick up, its cheaper to rent and save if property is not gaining capital

TracyAnne

The original poster does not necessary say that they are in Melbourne. For some people that intend to stay permanently having your own home is a big factor towards settling here in Oz, its not necessarily a financial decision. Personally having been a home owner since the age of 21 the thought of renting for 2 plus years was not an option, I knew that my children would not feel settled unless they were in their "own" home. I am just giving my personal opinion, we are all different and all in different sutuations.

Tracy

Jim&Sus

Hi Tray,

We're actually going to the Gold Coast area. I'd be studying so wouldn't be able to work many extra hours, altho' that may be unavoidable! Don't know why, but I'd rather own if possible (in the hope that the property would increase in value) than spend a fair bit of our savings shelling out rent for 2 years and getting no return - maybe have to change my mindset
I suppose tho' that if we invest our equity somewhere whilst we rent, then we'd make some interest on that - decisions, decisions!

Susan

NedKelly

In theory you are not allowed to buy second hand property if you are not a PR or citizen. This can be got around with the use of a trust or company. Have a chat with an accountant as this is a complex issue. They should be able to explain all the benefits and pitfalls and come up with the best way forward. This isn't the kind of question that has a simple answer as your financial circumstances need to be considered by a qualified person. Good Luck!

rcladin

From a financial point of view - I would say your attidude to home ownership is a little naive, there are a lot of factors influencing the price and growth of house prices, you should do some research on the internet, it could save you money.

Good luck, you could put the money into 'safe' savings bonds or schemes awaiting the market to rise.

ABCDiamond

Some info from the FIRB re buying property.
Temporary Resident, Retiree or Student - Can buy new property without restriction or an established property provided it is your residence and it is sold when your visa expires. Consent of the FIRB is normally required. (exceptions apply for some spouse / de facto partner.)

Any mortgage would depend on the ability to repay, to the lenders satisfaction. Most require you to be a resident, but some do lend to temp visa holders.

Be aware of the buying costs, stamp duty etc., as this can be a very big chunk, depending where you buy. This alone, for a short term buy, may make renting look better.