Buy a Home in Australia – Real Estate


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Investing in Australia Property

Looking to buy property in Australia? The rules by the Australian Government for buying real estate in Australia, homes or investment properties for overseas investors have been made easier.

However, before buying land, home, or commercial real estate as an overseas investor, you will need to obtain an approval from the Government in Australia.

There are reasons for this. The government has stated it wishes to increase the number of new houses, condominiums, townhouses, villas, units and apartments being built in this country, and is inviting overseas investors to invest in Australia.


Immigrating to Australia – Permanent Residents


If you hold a permanent resident visa, or are already an Australian citizen, these types of restrictions do not apply.

Other exceptions include if you are the holder of a ‘Special Category Visa’ such as given to New Zealand citizens, or married to an Australian citizen and want to buy residential real estate for joint tenancy.

Real Estate Vacant Land

If you wish to purchase open land, you will need to start building within twelve months, continuous.

Foreign Investors can also buy existing homes for redevelopment but the home will need to be unoccupied during the work.

Buy Units, Apartments, Townhouses or Villas

Foreign investors are usually able to get approval to buy units, apartments, townhouses, condominiums and other similar residential properties. They must be new, having never been occupied or sold, or those in the planning stages – termed ‘buying off the plan’ in Australia. The other limit is that only 50% of the new development can be purchased by overseas investors.

You may also be able to purchase after obtaining approval if you are a foreign national resident in this country for more than twelve months.

Obtain Approval

You will need to supply the address of the residential property you wish to purchase. If you sign any contracts before the Australian Government has given approval – you will be turned down.

Foreign investors cannot obtain ‘in-principle-approval’. Therefore, do not sign any contracts unless they specifically state it is conditional upon approval from the Australian Government.

Do not get caught out by signing a contract before approval, or get talked into signing before approval for you to invest here.


Australian Property Investment


Other important factors to consider, including seeking professional advice:

  • How much to borrow, bearing in mind how much you can actually afford to borrow.
  • How much one can afford for investment.
  • Actual costs to the investor before and after tax.
  • Where to invest and what type of investment(s) could potentially give you the best return over the years.
  • Understanding and managing the risks that may be involved balanced against optimum capital growth.
  • Obtain information on the better places to invest in Australia.
  • Fluctuations in Foreign Currency compared to the Australian Dollar (AUD) and of course, Interest Rates.

There is professional advice available from various institutions, as well as advice from the Australian Government.

Before actually purchasing, it is always recommended that you seek professional advice to learn more about Australia foreign investment rules and about buying land or other investment properties in Australia.


Buying Investment Property


When buying an investment property, factors to consider include your present liabilities, potential rental level returns and allowable tax deductions. Home loans and Finance loans are of course available from many Australian financial institutions.

Home Loans

Fees and Interest apply to home loans and finance loans, they can vary considerably, especially over long term home loans, financial loans, or personal loans, so do shop around.

When buying real estate or a property in Australia, for your family home or as a financial or business investment is still one of the most important decisions anyone can make. At the end of the day, it is very much a business decision and needs to be understood from the head and not the heart.

Home and Land Prices – Goes Up in Value?

When you purchase land or a property you would want the property to go up in value. This is certainly an important consideration if you are borrowing money by getting a mortgage loan, there is interest, fees and taxes to be paid!

But property values do not always go up.

Timing is a critical factor. There are lessons to be learnt from playing games like MonopolyTM, if you borrow too much and end up with a huge bill(s) at the wrong time, you may end up paying a lot more than you bargained for by being forced to sell at the wrong time.

Australian Property Values

Australian property values and the economy go in cycles, so learn them. Try not to be too enthusiastic to buy when property values are abnormally high, typically by borrowing too much, then having to sell in a slowing housing market.

If you are cashed up, it may good to buy when interest rates are at their highest, as the rest of us who need to borrow to buy a house put off buying, while those who need to sell their investment properties quickly decide to drop their prices.

When interest rates go up as governments get concerned about the inflationary part of the economy cycle, your ability to sell when you want at the price you thought you would get is negatively affected, even if only for a time, when there is a cooling investment market.

Australia certainly goes through these cycles, as does the rest of the world.


Source:Australia Tourist Guide