Important Steps to Buy Property Successfully in Australia

Australia’s warm climate and immense natural attractions inspires many people living outside the country to desire to buy property here. In addition, the friendly people, the wonderful food and wine, the scenic beaches, and a thriving economy make people look forward to re-settling down under. Here are some tips to help you buy property in Australia.

buying property

Understand Why Australia is a Good Place to Buy Property

Australia is now one of the best destinations to buy property. The beautiful weather, amazing natural wonders, affordable housing, and abundant business opportunities make many foreigners excited about living in Australia. For people dwelling in Europe, moving to Australia offers a relatively low cost of living and a high quality of life. In addition, there is a booming tourist industry that brings in millions of people to Australia every year. Australia has a vibrant economy that is more resilient and resistant to recession than other developed countries.

Know the Choice Locations for Buying Property

If you are planning to purchase property for a permanent move to Australia, you should consider the major urban centres such as Melbourne, Sydney, Brisbane and Perth. These cosmopolitan areas will provide you with many beautiful house plans and excellent work opportunities especially if you are coming into the country with a “Skilled Migrant” visa. You may also consider the coastal areas where the tourist industry is thriving. Places like Cairns and the Gold Coast in Queensland will provide you with a good opportunity to set up your own business.

Obtain Legal Cover

To buy property while you are living outside the country, you will need to obtain permission from Australia’s Foreign Investment Review Board, if you are not a permanent resident or Australian citizen. Your application at the FIRB will usually be treated within 40 to 130 days. Ideally you should obtain your approval from FIRB before you set out to find a land and house package deal. Some properties such as a new-build property in a remote rural area may not require approval from FIRB. Make sure you consult your lawyer to know all the types of property that are exempt from FIRB approval.

Prepare to Finance Your Investment

If you intend to become a permanent resident in Australia, you should consider obtaining a mortgage when you settle down. You should obtain a credit report and if possible let your bank manager write a reference letter for you (you can even hire a professional writer to write a neat reference letter). Remember that most of the mortgages you can get in Australia are based on proof-of-income. It may be possible for you to raise some of the finance at home but you will have to do so outside traditional lending institutions.

As you sort out the source of funding for your loan, you should also be aware of the fees and taxes associated with buying your property. You should budget for a little over 5 percent of the purchase price of your property to cover all the relevant fees. These include legal fees, mortgage application, building insurance, local tax, and land transfer registration. In some states you may also be required to pay for pest inspection.

Buy Your Property

The buying process begins with making an offer for the property you want to buy. If your offer is accepted, the seller will communicate with you and then you may proceed with the rest of the process. You will have to sign the contract papers and pay an initial holding deposit (usually about 10 percent of the property price). Then request for home inspection and mortgage approval. Your lawyer will also help you to search and confirm the owner of the title deed before you can complete the deal.

Conclusion

Those are some of the most important steps you need to take when you want to buy property in Australia. Take full advantage of the good economic prospects in Australia and buy a home that will meet your needs and increase in value over time.


Photo courtesy of Platform Research

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About alexchester (68 Articles)
Alex Chester is an economist currently working on a few projects in Australia.

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