It is possible as a foreigner to buy property in Australia. Unfortunately, those who have a PR or permanent visa / TR or temporary visa can take advantage of the real estate market because many qualify for mortgage loans.
While banking regulations or specific country laws make it complicated to invest in property or take-out loans in other countries, there are fewer roadblocks for foreigners in Australia.
Lenders have stringent rules for borrowing based on the visa and circumstances of the investment, and for Australians choosing to reside overseas. The option to use a mortgage broker is available as a go-between to help make the process easier. Learn tips for getting a mortgage at https://www.moneysupermarket.com/mortgages/first-time-buyers/top-ten-tips/.
Do You Need A Mortgage Broker To Buy Property In Australia?
A mortgage broker is an “intermediary” acting between the borrower and the financial institution, with some helping you meet guidelines to qualify for a foreign home loan.
The loan consultant has negotiating capacity to achieve better interest rates / terms and can relieve you of potential complications plus the time it takes to maneuver through the mortgage process. Most have access to lenders that aren’t easily accessible by the general public, allowing them to get the best possible loan for their clientele.
Related to buying property in Australia: The Best Mortgage Brokers Melbourne Has to Offer
You won’t find brokers as a commonality in all countries. Still, these are popular with the markets of Australia, New Zealand, the United Kingdom, the United States, Canada, and a few other countries. Each industry is unique unto itself.
The recommendation is to use a mortgage broker most certainly as an investor in another country, not to mention when purchasing a property in your own region. These professionals help make a homebuyer’s experience, especially a first-time buyer, as fast and easy as possible. Open here for guidance on using a loan consultant.
Buying A Home In Australia As A Foreigner
One of the most sought-after immigration destinations is Australia when compared globally based on the education system, healthcare, quality of life, and income level. The suggestion is that purchasing real estate in the country is a good investment and owning a house is a “dream come true.”
The requirements differ based on your resident status, whether you are permanent, temporary, or a non-resident. For a foreigner, you have conditions when buying a house, like placing an application with “FIRB – Foreign Investment Review Board.” That applies to foreigners, those with a short-term visa, and temporary residents.
What Is A Non-Resident?
A non-resident is someone typically living in another country but with visas that permit their stay in Australia for a specific time.
- Dwelling (Established): A non-resident cannot buy an established structure but can buy a vacant property to develop a residential house, but it is subject to specific conditions.
- Dwelling (New): A non-resident can purchase a new structure with no type of conditions attached, except the FIRB generally must give their approval before an acquisition.
What Is A Temporary Resident?
A person who holds a TR – temporary residence has permission for continuous stay in Australia for a period longer than 12 months or can put in an application to receive a PR permanent residence currently with a bridging visa.
- Dwelling (Established): A TR can buy only one established structure, but the owner cannot use it as an investment property. It must serve as your primary residence, with none of the property used in a rental capacity.
You can also buy this type of structure for redevelopment but with specific conditions.
- Dwelling (New): There is no limit to the number of new homes you can buy if there is approval from the FIRB for each purchase. There are conditions.
1) The home needs to have no previous occupants.
2) The house should have no previous sales as a residence.
3) The structure cannot be a new construction replacing an established dwelling(s).
Vacant land is also a possibility for the development of a residential dwelling with specific conditions.
Permanent Residents
A permanent resident (PR) is a person who has a visa to work and live in the country indefinitely, but that does not make them a citizen. These visas eliminate the need for FIRB permissions because PRs share the same privileges as citizens as far as buying property meant for dwelling.
A common misunderstanding is that you can become a PR merely by purchasing a structure in the region. That is not the case. There is the potential to earn extra points if you buy a dwelling and incorporate the points system with your visa application. In this scenario, the requirement is to have a Certificate of Title showing ownership or the rate notice.
Considerations For Foreigners Considering A Property Purchase In Australia
The consensus is house price points in Australia are slightly high, but the demand for real estate is steadily increasing. The interest rates as of October were among the world’s lowest.
That can lead to considerable savings over time. The typical interest rate in October was approximately 4%. Variables can dip down to 2.17%; it varies based on a borrower’s specific situation.
There will be stamp duty to take into consideration with each purchase. It is the tax charge for the structure and will vary for each territory and state. The cost can be as great as 10% of the value of the property, but you have the option to finance this amount in many cases.
Final Thoughts: Buy Property In Australia
Moving to a new country can prove to be a challenge depending on where you choose, but Australia tries to make the experience as seamless for foreigners as possible. Plus, a reputable, trusted mortgage broker (check here for more info) can simplify the process extraordinarily.
Many people from around the world travel to the beautiful country and once there choose to stay. The suggestion is that it is a “land for exceptional opportunities.” If you like to travel, it sounds like an incredible place to see.