THINGS TO CONSIDER
Finding a new home is one of the first things you will do once you arrive in Australia. There are a few key things to consider when looking for a new home.
- Your budget
- Proximity to work, schools and university.
- Quality of schools.
- Type of area required. What’s the vibe you are looking for?
- Transport infrastructure in the area.
- Facilities available nearby, shops, beach, river and parks.
BUYING PROPERTY IN AUSTRALIA
In Australia property is mainly sold through real estate agents, either by auction or for an agreed price. The real estate agent is acting for the buyer and is paid to negotiate the best deal for them. Homes are usually “opened” for inspection at a set time, often at weekends. Potential purchasers are then free to come along and take time to view the property. The real estate agent is the person who writes up any offers and presents them to the seller.
IMPORTANT POINTS
1. Not all migrants are eligible to buy property in Australia. There are some restrictions depending on which type of visa you entered the country on. You will need advice on this.
2. The real estate agent is acting for the seller. His/her job is to negotiaite the best price for the seller, not the buyer.
3. The “Offer and Acceptance” or contract is a legal document and in some states there is no cooling off period. In other words once you’ve signed the agreement you are bound by what is contained in it and you have to proceed with the purchase.
4. There are some things that you should consider including in your offer:
- A building inspection (to check that the building is structurally sound).
- Pest inspection (checks for the activity of termites which can be a problem in Australia).
- An independent valuation, (your bank may do this anyway before they agree to the loan).
- Pool inspection (check that the pool complies with council regulations and the equipment is working)
- Fixtures and fittings which are included in the sale (carpets, curtains, light fittings and dishwasher etc).
- Final inspection arrangements (you are entitled to visit the property to check that everything is in working).
- Settlement date (the day you would like to take over ownership).
- Deposit amount.
5. You can get advice before writing up an offer on a property, this is a good idea when you are new to the country and you aren’t familiar with the laws.
The people who handle the contractual aspects of buying and selling property in Australia are conveyancers and lawyers. It is their job to liaise with anyone involved in the purchase/sale on your behalf, from the bank to he real estate agent.
6. A tax called, Duty is payable to the State Government by the purchaser of a property, this varies according to the state. It can be quite costly, as much as 2% of the purchase price. If you buy land or a property which is being built, you only pay stamp duty on the value of the land.
DUTY CALCULATOR
7. A first home buyer’s grant is available to new migrants buying their first home in Australia. Currently it is $14,000 and $21,000 if you are buying a new home.
RENTING PROPERTY
Renting rather than owning your home is an option especially in the first months after you arrival. Renting is quite common practice in Australia. You will have to sign a fixed term lease for periods over three months.
IMPORTANT POINTS
1.You will need to provide character references before you can rent a property.
2.A bond of four weeks rent upfront is usually payable along with one months rent in advance.
3.A condition report will be record the state of the property before you move in and should be signed by you and the landlord.
4.The owner or agent will come and do regular inspections to make sure you are maintaining the property.
5.There are often restrictions on pets in rental properties.
6.Penalties can be involved if you break the terms of a lease agreement.
PROPERTY SEARCH
Below are links to websites which have property listings and information. Most websites allow you to search by state and suburb. You will also be able to check suburb profiles and get a feel for prices in each area.
It may also be useful to check out the Bank West Quality of Life Index Report 2008 which has tracked the standards of living across Australia.
www.realestate.com.au is one of the most widely used online property search tool in Australia. Also has a rental accommodation search function.
www.domain.com.au has an excellent suburb profile facility, where you can compare prices and trends. You can also check the population demographics of the area,
www.propertyguru.com.au displays a useful map of the area displaying houses listed for sale.
www.property.com.au new site from realestate.com.au search by suburb function with good map.
www.aussiehome.com Perth and Melbourne real estate search.
www.owner.com.au properties for sale by owner.
www.privatelisting.com.au properties for sale by owner.
LEGISLATION
The Real Estate Institute of Australia is the national professional association for the real estate industry in Australia. Their website has lots of information about legislation and property taxes. You will also find property listings on this website.
www.reiaustralia.com.au
Each state an territory has its own property laws, contract, tax system and Real Estate Institute. Here are the links which enable you to check out legislation in individual states and territories.
Real Estate Institute of Australian Capital Territory
Real Estate Institute of Northern Territory
Real Estate Institute of New South Wales
Real Estate Institute of Queensland
Real Estate Institute of South Australia
Real Estate Institute of Tasmania
Real Estate Institute of Victoria
Real Estate Institute of Western Australia
BUYERS AGENTS
It is possible to engage professional help to search for property on your behalf. Buyers Agents work for you the buyer and can liaise with you about the type of home you would like to buy and help you negotiate.
Buyers Agents Australiawide
CONVEYANCERS AND LAWYERS
Conveyancers coordinate all aspects of the purchase for you. They handle all the documentation and liaison with various parties.
Conveyancers Australiawide
Lawyers Australiawide
BUILDING INSPECTORS
Qualified professionals who will carry out a pre purchase inspection to check the condition of the property.
Building Inspectors Australiawide
MORTGAGES IN AUSTRALIA
Advice about obtaining a mortgage in Australia can be sourced from banks and regulated mortgage brokers. It is important to be fully informed about the type of product you are considering as penalties often exist for changing from one product or lender to another. As always seek advice from qualified and certified brokers and read the small print.
Find more information on mortgages, lenders, repayment calculators, tips and product comparisons at:
www.yourmortgage.com.au
www.mortgageaustralia.com.au
www.infochoice.com.au
BANKS
Banking in Australia
