So the visa has come through...
The job offer has been secured...
Or you're returning home from a stint in Hong Kong / London / Dubai or Singapore to name a few...
But what do the banks need from me in order to purchase a property?
Here's 10 things you need to know about your property purchase here in Australia
You have to have Permanent Residency or Australian citizenship. You can check with someone like myself if your visa is ok to use for purchasing a property... this includes certain types of bridging visas also.
You only require 1 payslip and a signed employment contract to gain pre-approval with some lenders here in Australia. That's correct, 1 payslip... some of the major banks providing you've been working overseas in a similar industry will only require these 2 documents as evidence of income for borrowing power. (permanent Part-time also included - casual contracts require 6 months in the job)
Understand your strategy and gain pre-approval before you do anything else. Australia has lots of auctions unlike other countries, you are required to have pre-approval in place before going to auction so make sure you speak to a broker like myself to work out your best options for lending with over 30 lenders including all major banks and get that lending pre-approved before making offers.
The 200-day rule - When purchasing your first property here with permanent residency you are required to have been in the country for more than 200 days or you may be charged "stamp duty surcharge" which is a penalty fee on stamp duty when you buy your property. Some countries are exempt from this rule so check with someone like myself before you get stung a heavy fee by the government. Although taking into consideration the next point you may not be too far off 200 days.
So how long does it take to get approved, search and settle on a property in Australia? So you're going to land, spend 2-3 weeks settling in before you come and talk to someone like myself, there's a mountain of admin to complete on arrival. Schools / Daycare / Medicare cards / Drivers License / Bank accounts / Rental property / New job etc. etc. Once you've actually sat down for a second and taken in the hot sun and the beach you'll speak to us. It takes around 10 days to gain pre-approval. You'll have up to 180 days on that pre-approval to find something and then the settlement process after you've made an offer is around 35 days on average. All in all if you take everything into consideration, the 200 day rule is pretty much over and not something to be too worried about.
Am I entitled to government schemes as a first time buyer? Yes you are, as a resident or citizen you are entitled to any stamp duty waiver schemes and lenders mortgage insurance waiver schemes if you meet criteria. On our initial call we will work out what you can claim if you can claim anything...
How do mortgage brokers work in Australia? We're free in Australia, we are simply commission based with lenders and all lenders pretty much pay us the same amount. So there's no cost to you as the customer, our job is simply to find you the best option at the best rate. We'll also review your loan annually and shop the market bi-yearly to make sure you're with the best possible lender.
Can I buy interstate? Yes you can, there are several main states in Australia and you can buy investment properties and holiday homes in any state. You'll also benefit from Negative Gearing which is a tax benefit for owning investment property. We can also introduce you to relevant professionals including buyers agents, solicitors, conveyancers and more to assist with the process.
There are lots of benefits to owner property in Australia. They treat a tax return and property a bit like sport! So you need to be in the know... We can help explain all the different and amazing systems they have including zero capital gains on owner occupier properties, negative gearing on investments, offset accounts to pay down your loan super quick and more.
What should we do from here? Let's book a teams call in wherever you are in the world, even if you're not moving for several months it's good to get to grips with how things work and what your potential borrowing power is, as well as all of the costs involved. Then when you land here in Australia we can schedule another call or meeting to begin your Australian property dreams.
Book a call today - https://linktr.ee/rossthemortgagebroker
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