Essential Tips For Foreign Investors Of Australian Property Buyers

Before starting the property hunt, start building your support team and act as the best Australian property buyers. This would include an investment property consultant, mortgage broker, and most important a conveyance or solicitor. Your consultant will help you find properties that match your investing profile. Your mortgage broker can provide you with credit and needs analysis, as well as help you find the best loan provider. Your Conveyancer or solicitor will take care of all the legal work, from ordering property inspections to fixing the deeds of sale.

How to start saving for your deposit:

• You will need money to pay up the difference between the property’s purchase price and your mortgage, which in most cases can run from 10% to 20% of the total purchase price. Aussie banks and lending firms love to see borrowers who can save a deposit on their own. At least a three-month history of genuine saving would be enough to help you establish a low-risk investor profile among Australian banks.
• Save extra money for other expenses, about 4%-5% of the purchase price. This amount will cover all the costs associated with buying a property in Australia, including stamp duties, conveyancing fees, inspection costs, registration fees and the like. If you are one of those foreign nationals who are looking to get your slice of the Australian dream, then you are mainly here for investing, make sure to get approval from the Foreign Investment Review Board (FIRB). A FIRB approval allows you to buy a new property or vacant land to build a new property on. You cannot buy an established home as an investment property.
• If you are on a temporary visa (e.g. spouse visa, student visa or 457 work visa) on the other hand, a FIRB approval allows you to buy one established dwelling to live in, which you are required to sell if you don’t live there anymore. Should you decide to invest in Australian property for investment’s sake, you are only allowed to buy a new home or vacant land on which you can build a new property.
• Stay away from making too many credit card or mortgage applications. If you want to explore your home loan options, then do so by speaking to lenders directly instead of submitting multiple loan applications. So, if you intend to invest in Australian property, open a savings account in the country, move your overseas funds into that account, and deposit money on this account regularly.