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Buying a House in Australia
Any Australian Citizen or Permanent Resident of Australia can a buy a house in Australia without any restrictions.
Each State has its own rules and regulations on purchasing property.
What may be correct procedure in one State may not be the same in another, so
it is advisable to always check first, before assuming that what you have heard
elsewhere actually applies.
One example of this is making an offer for the
purchase of as property:
In some States, NSW being one, an offer is just
that, it is an offer to purchase. However, in other States, QLD being
one, an offer to purchase a property is actually signed by the purchaser, and,
if accepted by the seller, becomes a contract immediately. Therefore make
sure your offer is subject to your conditions. The Real Estate agent
should advise you on this, but the initial conditions you should request, as a
minimum, are "Subject to you getting suitable finance"
and "subject to satisfactory Pest Inspection and
Building Report"
Always, when buying a house, have a Pest
Inspection and Building Report done before completion.
Stamp Duty
When buying a property you normally have to pay Stamp Duty on the value of the
purchase. This figure can vary from NIL to around 5%.
Each State determines its own level of Stamp Duty, some being much more
expensive than others. There are Stamp Duty Offices in each State:
Stamp Duty Calculator at:
http://www.yourmortgage.com.au/calculators/stamp_duty/
An "indication" of standard Government Fees
covering Stamp Duty, Mortgage Registration Fee, Transfer Fee, and Stamp Duty
on Mortgage, as at Nov 2005, based on an example of a $300,000 property,
with a $150,000 mortgage.
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QLD - $ 3,813.80
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NSW - $ 9,685.50
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ACT - $ 9,748.00
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TAS - $10,281.50
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NT - $10,830.00
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WA - $11,285.00
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SA - $13,010.00
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VIC - $14,536.20
First Home Buyers
Stamp Duty Concessions for First Home Buyers
First Home buyers are offered discounts on
Stamp Duty for their first residential purchase, in most States.
Conditions and rates are different for each State, and are liable to
changes. Example currently include:
The above were valid as at Nov 2005, and may be
subject to conditions. [Some have been updated where indicated] Please read the relevant websites.
First Home Owners Grant
First home buyers may be eligible for a one-off grant of $7,000.
(Victoria is $10,000 or $12,000 for a newly built house)
This Grant was established in July 2000, by the
Federal Government to assist in offsetting the effect of the Goods and Services
Tax (GST) on the purchase or construction of a home by a first home buyer.
Payment of the grant is not currently means tested and
there is no upper limit on the value of the property being purchased. However,
to receive the grant, each applicant must comply with the eligibility criteria
detailed by each State.
Please contact the State Revenue Office in your state for details.
Property Buying Restrictions:
Australian Citizen or Permanent Resident - No Restrictions
Temporary Resident, Retiree or Student - Can buy new property without restriction or an established property provided it is your residence and it is sold when your visa expires. Consent of the
FIRB is normally required.
(exceptions apply for some spouse / de facto partner.)
Foreign National or Foreign Corporation - Can buy new property. Can buy vacant land as long as building commences within 12 months of purchase. Can buy an established property only if an additional amount of no less than 50% of the original property cost is spent on improvements or additional construction. Can buy up to 50% of new projects or apartments, Consent of the
FIRB is required.
FIRB = Foreign Investment Review Board - http://www.firb.gov.au/
Interesting Q&A fact sheet: - http://www.firb.gov.au/content/faq.asp
The FIRB FAQ site states: (as at April
2005)
Q6. I am a foreign person living in Australia on a long stay, temporary
resident visa. Do I need approval to buy an established house to live in?
A. Yes. Foreign persons temporarily resident in Australia for a period exceeding
12 months from the time of application for approval are eligible under foreign
investment policy to acquire residential real estate. If the property being
purchased is an established dwelling, that is, one that has been previously
occupied or sold, foreign investment approval is still available provided that
the dwelling is to be used as the person’s principal place of residence, not for
rental purposes and the property must be sold when their visa expires or they
cease to reside in Australia.
Q18. I am an Australian citizen, but my spouse / de facto partner is a
foreign person, do we require permission to purchase a house?
A. Australian citizens and their foreign spouses (which include de facto
partners) are exempt from notification as long as the property is zoned
residential and you are buying the property as joint tenants.
Links
Government
Mortgages
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Home Loan Selector - A service that compares home loans in your state by
interest rate, type (such as fixed or variable), optional features and fees.
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Infochoice - Another of the above.
Calculators
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Borrowing Guide - St George Bank
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Stamp Duty Calculator -
E-Choice
Exemptions and concessions on stamp duty may apply to first home buyers in some states
Online Real Estate Links
Real Estate Institutes
House Builders Info
Buying a House in NSW
Look around for a suitable House at about the right price.
Negotiate the price, normally with the Agent, but sometimes you can do
this directly with the owner.
Once you have agreed a price, instruct your property conveyancer, or a
solicitor to deal with the Sellers agent/Conveyancer.
Then get a pest and property inspection done.
Your mortgage company will often get a valuation done, but NOT always, it
depends on your borrowing %. If they do not get a valuation done, it is
often best to get one yourself. Some people get both.
Buying a House in QLD and Victoria.
Look around for a suitable House at about the right price.
Decide on what price you wish to Offer, and sign a contract to
purchase at that price, subject to "Pest and Property Inspections and
subject to "Obtaining SUITABLE finance". The agent will pass that signed
contract to the seller, and if they accept it, they also sign and the "deal is
done", subject to YOUR specified clauses. You then get your Pest and Property
Inspections carried out and arrange your finance if any. Victoria:
Sample of Contract Note for Property Purchase/Sale
source PDF file
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