Whether you’re looking to purchase an investment property or migrate to Australia, ParkTrent can help. Here is an overview of the buying process.
The best place to start is by speaking with a ParkTrent property specialist. They will be able to provide you with an array of real estate opportunities tailored to your property needs and provide a more details overview of the buying process. Your ParkTrent property consultant can also answer any questions you may have.
Non-residents wishing to purchase property must firstly obtain permission from the Australian Government Foreign Investment Review Board (FIRB). You can apply directly to the Australian government through their online application process which can take 40 to 130 days to receive a response. If the process seems a little too complex, ParkTrent offers migration services as a licensed migration agent. Whilst you are waiting for your application to be processed, you may begin your property search in your desired location.
If you’re looking for an investment property, non-resident foreign investors cannot buy existing dwellings, you can buy properties in new developments so long as not more than half of the development is sold to foreign owners. In practice, this means that you will have to invest in an off-plan or recently completed flat, but the good news is that most Australian flats come with lifetime ownership so there’s no lease that’s running down.
Once you have found a property, the contract for sale is drafted. Before this is signed, you still have the option to cancel the transaction if you change your mind. Please note, the seller also has the same rights. If both parties wish to proceed, the contracts are signed and exchanged. A deposit of around 10% of the property purchase price is typically required at this stage.
Once the contracts are signed and exchanged both parties are bound to proceed with the transaction. In most states however there is a period of time known as a “cooling off” period where the buyer can change their mind without losing their deposit, although there may be an administration charge or penalty for this. This varies from state to state and ranges from 3-10 days after the date the contract was signed. This is typically not available for properties bought at auction.
Once all the sale conditions have been met the sale can be settled, i.e. completed, and the balance of the purchase price paid. The property is then formally transferred to the buyer and will be registered in the relevant land ownership register.
You can then move into your new home or if you’ve purchased as an investment, ParkTrent can assist with finding tenants.
Foreign investors can borrow up to 70% of the property value through an Australian home loan. ParkTrent can refer you to a qualified mortgage broker who will source the best home loan to suit your needs and assist with the whole application process.
Additional costs on top of the purchase price of the property will apply and varies from state to state. On average you should budget for an additional 5-7% of the property purchase price. Costs will include: taxes, legal fees and land registry fees.
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