Relocating to Australia has been going on since the 1950s and Australia is always looking for good assets for the country. As a large island Australia is surrounded in coastline and has a huge expanse of interior countryside all of which is visited by many thousands of people worldwide. Foreigners can purchase property although restrictions are in place against buying older property. First time home buyers are eligible for Federal grants if you are an Australian citizen or permanent resident buying a new build home or building that was constructed on or after year 2000. Applicants must apply within 12 months of buying the property or being built and move into the property within 12 months of buying the property. Not for buy to let or selling on option. Federal Grants are not means tested and basic documents are required including; signed and dated sales contract and transfer of a building or land and an occupancy certificate moving into an apartment or other building. See www.firsthome.gov.au although depends where in Australia the property is as different schemes are running in different states.
Once an offer is accepted by both parties to transfer ownership of property in Australia contract is then binding.
Buying as foreign nationals is restricted to property that has been approved to be purchased by foreigners by the Foreign Investment Review Board. Older property in general is out of bounds foreign investors. Buying property in Australia as a foreign investor is mainly investing in off plan homes and new builds.
Australia property buying process is straight forward, where a buyer puts in an offer to buy property and gains an acceptance from the seller. Sign a binding contract that your lawyer deals with and a deposit is also paid. Your lawyer then would check title deed and ownership, builders insurance and guarantee, research local area and checks on the property and a survey is a good idea. Conditions of sale could be inserted into the contract is a good idea also. On the day of completing transfer of ownership the final balance must be paid by you.
5% of the buying price could cover stamp duty, property buying tax, although accurate additional buying costs vary by state.
In addition Goods and Services Tax (GST) must be paid when buying property in Australia, which is vat taxation.
Register title deed and land registration fee when your lawyer transfers the ownership of the property into your name. Lawyer fee and real property fee also requires to be paid.
Ongoing costs include yearly land and building taxes and every 2 years by law all property in Australia must be re-valued and the official valuation logged with the Australian government.
Written by: Education Tay RCB