Buying a new home can be both exciting but stressful! When you are wanting to purchase a home in a new place it can come with some complications. Before you start seaching for your new home there are many things you may want to bear in mind:
- Be clear what style of housing you like and where you want to live. You can visit our Where to Live section to get ideas.
Research the market – there are a number ofsearch engines available which allows you to research recent sales in the area, and predict expected future economic trends. To search for properties check out www.ourproperty.com.au, or Mandarin speakers may prefer to use www.gifang.com. You may also want to look at www.realestate.com.au and www.domain.com.au . Websites such as www.myrp.com.au will offer suburb profiles and recent sales reports. Local estate agents may also provide this information so you can compare pricing.
- Research the costs involved in buying a property and also ongoing costs of property ownership.
- Check whether you will need finance to complete your purchase?
- Check if you are eligible to purchase property in Australia?
What is the process involved in buying property in Australia?
Are you eligible to purchase property in Australia? As a non-permanent resident there might be restrictions on your ability to purchase property. The Foreign Investment Review Board of Australia considers all applications for non-permanent residents.
If you need further information please refer to: firb.gov.au
Make sure you prepare a budget and that you understand your financial position. If you require finance to assist with your purchase there are many financing options available. The home loan market in Australia is extremely competitive providing a variety of many different lenders with many more product options. Although this competition is ultimately good for consumers, finding the best deal can often be complex and time consuming. This can often be complicated by the fact that each lender's credit policy varies when lending to non-permanent residents. An accredited Mortgage Broker will have access to many lender and product options saving you time and money as they have the expertise to direct you to the correct loan from hundreds of options. They will be able to present you a number of different options and outline all the associated costs and terms.
Engage a solicitor or conveyancer - Once you have decided to purchase your new home, it is highly recommended that you engage a solicitor or conveyancer who will be able to assist you with all the legal aspects of your purchase. Use FindLaw directory to commence your search.
A few handy tips:
1. Deposit – most lenders will expect you to have a minimum deposit of 20% of the purchase price. Some lenders, hoever, do provide products allowing for a smaller deposit but this will depend on your individual circumstances.
2. Pre-approval – finance pre-approval will allow you to bid at auction and submit offers knowing that your finance has been conditionally approved. Pre-approval are generally valid for three months while you search for your new home. Would you like to apply for a pre-approval?
3. Required documentation – This will vary from lender to lender, but generally speaking, you will be asked to provide ID, evidence of income, and details about your current financial position.
Know the costs involved in purchasing a home in Australia
- There are substantial costs involved when purchasing property both before and after you buy. These are some costs which you may need to pay:
- Stamp Duty of Transfer – this will vary depending on which state you are buying in. Use the Office of State Revenue calculator
- Building and Pest Reports – it is recommended that building and pest reports be obtained
- Legal and conveyancing costs
- Financing costs – this will vary from lender to lender
- Home and contents insurance
- Moving costs and utilities
- Ongoing council rates
- Ongoing body corporate/strata fees – these are generally payable when purchasing apartments and units
If you are a Tasmanian permanent resident you may be entitled to a first home owner’s grant. The grant is different in each state but Tasmania it can be as much as $7,000. The grant has conditions.
Making an offer – there are two main ways of purchasing property in Tasmania.
1. Auction – properties are sold by auction when demand is high. If you are the successful bidder you will be immediately expected to pay a 10% deposit and the contract will be unconditional so ensure you are in a position to settle on the purchase.
2. Private Sale – is when a property is offered for sale by negotiation. The normal practice is for the vendor (the current owner of the property) to set the price and you negotiate with them until a mutually agreeable price is reached. The terms of the contract can vary but it is generally accepted that a 10% deposit is required on exchange of the contract.
Contract of sale – the contract of sale is usually prepared by the agent or the vendor’s solicitor. Make sure that you have your solicitor or convenyancer review the Contract of Sale before you sign anything.
Settlement Process – once the purchase is agreed your solicitor or conveyancer will handle most pre-settlement conditions and will liaise with all relevant parties.