It is no secret that Australia is in the midst of a housing boom. Property is hotter than ever and supply is struggling to keep up with the demand. But if you are preparing to invest, what are the essentials you need to know?
If you are confused about what to do then we can help. Read on as we discuss everything you need to know about property for sale in Australia.
Costs of Buying
The costs of buying real estate in Australia are fairly high. To get access to a home loan you will need a deposit of 20%. You can get loans where you need a 10% deposit but this means you will have to pay for Lenders Mortgage Insurance.
Stamp duty will vary depending on the state you live in. You should be able to locate this information on the local government websites. Conveyancing and legal checks should be between $1000 to $3000.
On top of this, a lot of other costs can start to mount up. Building inspections, applications, and valuation can add to it. The hidden costs of buying a home can be seen at this link.
Preparing to Buy
When making an offer, you shouldn’t offer less than 10% off the asking price. Like most countries, it is then a case of paying the deposit and exchanging preliminary contracts.
In Australia, no parties are legally bound to complete the sale until the contract of sale has been signed and swapped. This should include the name of the parties involved, property price, addresses, terms and conditions with the date of settlement.
The exchange to the settlement time should take around six weeks. A buyer has to pay the purchase price, stamp duty, and take out building insurance for the sale to be complete.
Buying New Builds and Off Plan
When buying a home that is a new build or off-plan there are some differences. The time between buying and building is much longer. Usually, it can take two to three years.
In these instances, 10% of the overall property value gets paid to secure the property. When finished, the rest of the balance is then paid.
Buying as a Foreigner
Investment in Australian real estate by foreigners is actively encouraged. There are already numerous investors in the country, hailing from countries as wide afield as China to the US. However, only certain properties are eligible for foreign investment.
Property buyers from abroad must start by applying to the Foreign Investment Review Board. This encourages investment in new building projects. They can include townhouses, new apartments, or land that will have a new property built on it.
Anyone who is a temporary resident is exempt from this and can buy existing properties. However, when they leave the country it must get sold.
Property for Sale in Australia
If you are searching for property for sale in Australia, then start looking early. New housing is not being built as quickly as you may expect. Existing houses are selling fast, so get your affairs in order soon.
This article is one of many to assist you in finding the perfect property. From moving to finance, we can help locate your perfect home in the coming year.