givemecoffee

Hey

I have read that the rules for temporary residents buying property have been relaxed from April with temp residents no longer needing to gain permission from the federal government to buy. Does anyone know if you still need a 20% deposit though as this is what we have previously been told?

Many thanks

dpande

The one protection that a temporary visa gives you against being suckered into the planet's most overvalued property market has been removed.

Government's desperation about the housing market, much?

brendarover

Quality, absolute quality. Get you slavebox quick, become a debt slave to the bank asap, otherwise you know, you will be left behind?

scamp1976

Do *NEVER* buy a property in Australia on a temporary visa unless you want to lose EVERYTHING ....

You need to be a complete MORON to buy anything in this climate, let alone buying it on a temporary visa in the middle of a depression.

movin'on

Alright alright she only asked.

givemecoffee

Well thanks for that really helpful advice. Count me out of your wonderful ex pats site from now on - I will never use it again. All people seem to want to do is be insulting to others. Good luck to you all and good bye.

kkwall36

Hi givemecoffee,
Please do not take the comments of some individuals as being representative of all on this forum.
Like you I have been asking the same questions, and to answer your question, no you dont need a 20% deposit, try various banks and you will see that depending on your income they are prepared to offer you up to 90% of the value of the property.
Please be a aware that you will need to cover the other costs involved, stamp duty, mortgage insurance if you are not putting down 20%, and the owher fees such as conveyancing, survey costs etc, all of which can be 10s of thousands added together.
As for buying a property on a temp residence visa, well it all depends on what line of work you are in, and the possibility of getting a PR visa in the future.
If there is any doubt in your future employment situation, or of getting a PR visa then certainly be very careful!

As to the comments about buying in the current economic climate, once again it depends on your employment situation, and if you believe that the house prices are likely to be maintained, or drop away.

I have just bought a house and surprisingly I dont consider myself to me a "Moron", but someone who has weighed up the pros and cons and have decided that it is a decision that suits my situation, and one I am comfortable with.

All the Best,

Red_V_Roger

What...the same ways as I've been giving someone $2000 a month in rent when I have got the cash in the bank to buy and its earning next to no interest?

To go back to the OP's comment. Yes the FIRB approval requirement was removed about 3 weeks ago and back dated to property bought from mid-Dec '08 onwards.

Red_V_Roger

Me too...at least I'll be a happy moron sat drinking Champers in the spa of a house I own.

kkwall36

Yeh, it will be nice to have our own space and make changes without asking permission.

Cant wait to have the extra space, moving from 3 - 5 bedrooms.

With 2 kids and lots of visitors it has been confined!

Deutschmaster

Well, I agree with the warning about not buying on a temp visa - because if one lost their job their temp visa could be cancelled and there would be the extra hassle of having to sell the property. I suppose you would have to investigate how your industry is doing right now and the risk of that happening. I asked around mine at the beginning of the year and nearly everybody had recruitment freezes, only hired PRs or had jobs a million miles from anywhere - so I'm not too sure if I lost my job how easy it would be to find another quickly.

The 20% deposit thing would be set by the bank so you would have to ask around to see what their criteria is for lending to temp residents. They might class somebody on a temp visa as being more at risk of having to sell, and thus charge more for a loan.

I'm hoping to get PR soon as I applied last year - then I'm going to start to think about property. My parents back in the UK bought a property by managing to knock a third off the asking price as the sellers were desperate
. It would be interesting if i managed to do the same here.

paddyo

naked no doubt!!

Tooterelli

Chances are you are losing about $2000 a month in your house "value" as prices go down and down (for the next few years). Wish people would get over this "renting is dead money" issue. At the moment - for the majority of people - buying an overhoused property in the current highly overpriced market (but coming down on a daily basis) is a very bad idea and will be the ruination of many people (particularly first time buyers)

Red_V_Roger

Luckly, I'm not in a position where my purchase could go in to negative....i.e. owing more than what its worth. Plus I want the freedom to paint a room if I want, knock a wall down, change the garden and not have to worry about having to move because rental period was not renewed - or as probably will happen this time, the owners decide to sell.

Burbage

The 20% deposit is required by the banks for a loan that is NOT covered by mortgage lender's insurance. When I tried this a year or so ago the insurance company would not provide a policy for a borrower who was not an Australian PR. This is not under the control of the government or the bank.

The only thing the government ever did was approve the purchase as a foreign investment. This has never been a problem for most residential properties anyway.