Savvy foreign investors from China, Singapore, America, money lender The british isles and many other developed countries have been buying up properties on Foreign shores for a long time now, and the trend is expected to continue in 2015 despite the increasing property prices in Australia and the high-rating Aussie dollar.
According to the latest residential property survey by the National Australia Bank, overseas buyers are taking one from every six new homes in the country, and that number is defined to get higher in the following months.
If you are one of those foreign nationals who are seeking to get your peel of the Foreign dream, here are five essential tips to nabbing your dream home in the land down under.
1. If you are mainly here for investing, make sure to get an approval from the Foreign Investment Review Board (FIRB). An FIRB approval allows you to buy a new property or empty 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. grams. spouse visa, student visa or 457 work visa) on the other hand, an FIRB approval allows you to buy one established dwelling to live in, which you need to sell if you don’t live there anymore. Should you may invest in Foreign property for investment’s welfare, you are only allowed to buy new home or empty land on which you can build a new property on.
2. Before starting the property hunt, start building your support team. 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 credit and needs analysis, as well assist the best provider. Your conveyancer or solicitor will take care of all the legal work, from ordering property assessments to fixing the deeds of sale.
3. Start saving for your deposit. You will need money to pay in the difference between the property’s sticker price and your mortgage, which in most cases can run from 10% to 20% of the total sticker price. Aussie banks and lending firms adore to see borrowers who can save a deposit on their own. So, if you intend to invest in an Foreign property, open a savings account in the country, move your overseas funds into that account, and deposit money on this account regularly. At least a three-month history of genuine saving would be enough to help you set up a low-risk investor profile among Foreign banks.
4. Save extra cash for other expenses, about 4%-5% of the sticker price. This amount covers all the costs associated with buying a property in Australia, including stamps duties, conveyancing fees, evaluation costs, registration fees etcetera.
5. Stay away from making too many credit card or mortgage applications. This can get you a credit junkie reputation among banks. If you want to explore your home loan options, then do so by speaking to lenders directly instead of submitting multiple loan requests.
Australia’s housing market offers great investment chance of foreign investors. So sign up for our free e-book now and learn everything you need to understand about making a property investment in Australia.