Buying a property should be considered for stability and strong returns. Australia’s property market enjoyed consistent growth over the years, which is good news not only for locals but also for foreign investors. For many foreigners, they love the ease to invest in Australia.
Looking to invest in property development in Australia? You do not need to set up a business or partner with a citizen before buying or selling property. You just need to obtain government approval, which is not that hard. You can choose from breathtaking areas like Queensland, Victoria, Northern Territory and New South Wales.
If you want to obtain a property in Australia, you have to be aware of the buying process. Here’s a guide:
Organize your team
You need the help of professionals to successfully obtain a property. You need conveyancer, mortgage broker, and agent. Conveyancers are also called solicitors. These professionals will handle the legal work. Basically, they can help transfer the ownership and review the contract before you sign it. The mortgage broker can help you finance the property and will ensure that you get the best rate. Lastly, the agent can help you locate a property and negotiate the deal on your behalf. You just need to make sure that you hire a licensed agent.
Apply for mortgage
You have a mortgage broker that will do the legwork but you still have to fulfill other things on your end. To qualify for a mortgage, it is crucial that you secure a pre-approval first before you scour for potential property investment. However, you have to be ready because there is a different process for non-residents or foreign investors. It is complex but you have to be patient and not give up.
Before you start to look for a property, you have to make sure that your mortgage is pre-approved.
Check with Foreign Investment Review Board (FIRB)
If you are a foreigner, you are required to secure permission from FIRB. This process is not very complex and it usually takes up to 2 weeks from the date of the application. The fee will depend on the value of the property you will purchase.
Negotiate the price
In Australia, the properties are sold 10% less than the listed price. The price will depend on the type of the property and the location. This is where your agent comes in. The agent will negotiate.
Secure mortgage approval
After negotiating and you’ve decided on a particular property, you need to secure mortgage approval. The first thing you need to do is send the contract of sale to the broker to start with the approval. Your mortgage broker will remind you not to commit to buying the property until your mortgage is finally approved.
As soon as the mortgage is approved, you can now exchange contracts and pay your deposit. The contract should have a clause saying “subject to FIRB approval”. For any questions about contracts, do not hesitate to ask your conveyancer.
Conveyancer usually handles settlement. The conveyance will also keep the title of the property for safekeeping.