Buying Property Overseas

Advice needed re buying property in Australia

With so many people leaving the UK and Europe for Australia I thought it might be useful to explain the buying process in Australia. If you have more up to date information tips and advice re buying in Australia it would be great to hear from you. Overseas buyers who have been through the process themselves are invaluable sources of information. I am told that buying property in Australia is a relatively easy process to buy in Australia, even as a foreigner, but there are few things to remember. The government, through the Foreign Investment Review Board, or FIRB ( www.firb.gov.au ), must approve all sales of property to foreigners. This process takes approximately 30 days, and any purchase contract must have this review period written into the contract unless approval has been received prior to entering into the contract

The FIRB has a few restrictions on foreign purchase of property to keep in mind. For complete procedures, regulations and forms refer to their website, but the basics are as follows. Temporary residents may purchase property for their time in Australia but they must agree to sell it when their residency ends. For permanent purchases, you may buy a new or under-construction building, as well as new apartments, flats, townhouses and condo units. If you want to purchase a house or building that was previously owned, then you must add at least 50% of its cost to it through renovations or additions. Vacant residential land may be purchased; however, you must begin construction on a residency within 12 months of the land purchase.

Once you find a property, an offer is made verbally or on paper. After the price is agreed upon, a holding fee, usually 10%, is given to the owner while the contract is being finalized and FIRB approval is undertaken. With FIRB approval, the contract is almost always binding and you must finance or pay for the property outright or you lose your 10%. Taxes and fees usually amount to at least 5% of the purchase price in addition to it, and are different for every state and territory.

View property in Australia

Mortgages in Australia are fairly easy to obtain, even for oversees purchasers. The banking system is modern and there are any number of lenders and types of mortgages. Rates today average from 6% - 9% typically, and the standard minimum amount to borrow is $100,000 AUD. Terms are usually for 25 years.

Money transfers to Australia advice foreign currency transfers

Property in Australia

Oversea buyers considering buying a property in Australia could be in for a treat as the Australian property market develops a heavy cold.

The Australian Associated Press report that Australian property owners reluctantly believe that two interest rate rises this year will force many to accept lower prices when selling their Australian properties. The survey which comprised of 2,065 respondents was conducted by CoreData in partnership with media website NEWS.com.au.

All the indications suggest that Australia may now be a buyers market with property buyers firmly positioned in the driving seat. NEWS.com.au business editor Nicki Bourlioufas said."For many Australians, the bad news has already hit - almost one-third of respondents said the value of their home had fallen in the past twelve months," "The higher interest rates are hurting many, but for those who are still keen to enter the property market, there is opportunity to seal lower prices," said Ms Bourlioufas.

The survey also found that of those who had seen the value of their property fall, one quarter said their mortgage was now worth more than their home or that they held negative equity.

Overseas property buyers view Australian property

Overseas property buyers head for Australia

Overseas property investors from the UK have joined others from China and south-east Asia in purchasing property in the area of Western Australia.

Perth's property market has been highlighted because of its growth and, because of the resource boom in specialised employment opportunities.

The Australian suburbs have reportedly been proving popular, owing to the affordability benefits available in these locales, with Beenleigh, Bulimba and Paddington in Brisbane key examples.

Other areas which have been attracting attention are Elizabeth and Norwood in Adelaide, Richmond and Carlton in Melbourne and Balmain in Sydney.

According to Overseas property professional magazine, lifestyle factors such as access to beaches, rivers or golf courses are currently interesting investors on the lookout for new ventures, as well as concerns regarding transport infrastructure and proximity to business districts.


Darwin has also attracted interest from overseas property investors owing to a recent commodities boom in the area which has led to heightened prosperity.

In all Australia offers overseas property investors a huge selection of areas to invest or to buy for relocation and or retirement.