Borrowing to purchase Real Estate for new Australians

Purchasing real estate is important to many of you when relocating to Australia. 

 

When borrowing money to purchase real estate in Australia it is important to get the right help.  Bank policy and procedures can differ substantially from one lender to the next.  Some lenders will happily accept overseas income, and many will not.  Then there is the issue of how much money you would like to put into the transaction and this will also vary greatly from one lender to the next.  Some lenders will even lend you the money in your foreign currency and therefore should you have overseas income it may be possible to save you the expense of currency conversion when paying off your loan.

 

It can seriously take weeks to analyse all the available lenders.  For quality professional help, contact Queensland Property Finance www.queenslandpropertyfinance.com.au

 

New migrants would generally fit in to two categories.  Those with permanent Australian residency, and those without.  Depending on which of these applies to you will have a major impact on the process of home ownership.

 

Permanent Australian residents:

 

Permanent Australian residents have a number of benefits when purchasing property

 

·         No restriction on the type of property that can be purchased

·         You may be eligible for the First Home Owners Grant scheme which could get you a government grant of $14,000 paid to you upon settlement of your purchase of a home or $21,000 for a new home. Conditions apply  www.firsthome.gov.au

·         You may also be eligible for a state government transfer duty concession which can also save several thousand dollars.  The concessions are even much more favourable should you be an eligible first home buyer.  Home buyers that are not considered first home buyers in Australia may still receive a concession on transfer duty.

 

Foreign (non-permanent) residents:

 

Foreign residents purchasing property within Australia generally have some restrictions when purchasing real estate in Australia.

 

·         Prior to purchasing property you must gain approval from the Foreign Investment Review Board www.firb.gov.au

·         Usually the property must be never previously owned or occupied.

·         Generally, 2^nd hand property is not approved for purchase except in two circumstances.  The most relevant of these being when the applicant holds a current temporary visa for a period of more than 12 months from the time of application and the property is being used as their principal place of residence and not for rental.