Expats moving to different countries may find looking for a new home will be quite a challenge. With a few factors to look at such as choosing the right area and finding a suitable property, many people who have moved to Australia find it more convenient to rent a property in the country before buying it, this would give more of a choice to see different properties in different areas.
A tip to remember when looking for properties is that in Australia they are referred to as flats or houses. A flat is term for an apartment with 2 bedrooms and a Studio for just one bedroom; this may be cheaper than renting or buying a house. A house is larger than a flat with much more outdoor space. You may also come across a ‘Unit’ which is larger than a flat with split levels like a house.
Buying Property
Finding property to buy or rent in a new country is not easy, so here are a few tips that can make looking for a new home a little straightforward.
1.Location
Start off by choosing an area which you would possibly want to live in by visiting the neighbourhood and doing research about the area. Speak to estate agents advertising the properties, and see if the area is within your payment budget.
Due to the public transport, expats will also need to consider how close the workplace is, how long it takes to travel to work and the locality of the schools. If you are moving to a major city, expats are advised to look at three or more properties in different areas.
Majority of the estate agents and property websites will be able to provide information about nearest transport links, shopping centres and stations so customers can calculate travel time in between these areas. They will also give expats information about parking if they have their own car. This is one factor that needs to be considered as it can lead to unnecessary high costs.
2.Search for property before moving
When it has been confirmed that you will be moving to Australia, Expats should start looking at properties straightaway using property search websites. This way you will be able to see what the area is like and decide on a budget. Online websites provide more fresh information about the newest properties on the market. Once you have arrived in Australia, you will then have an idea of what kind of budget you have and the type of property you are looking if previous research has been done.
Real estate agents manage rental properties in Australia, however may not be very helpful if you don’t have a large budget. The most they will provide is a list of properties and a map.
3.Speaking to Agents
Once you have found a property it is important that you get in touch with an agent to arrange a viewing. Expats will be required to get in contact with the agency and the individual agent managing the property as they will be able to answer all their questions and start the process of renting out the property.
If you are unable to get in touch with the agent, it is recommended that you leave a message and also send them an email.
Expats must note that it is illegal for agents to rent properties without the tenant viewing it. If agents are holding viewings for properties or open houses, it is encouraged that you go to view this as these properties can be hard to get. Take along the papers necessary so if you want to put in application this can be done straightaway.
4.Applications for properties
When you are submitting an application for a property you need to ensure that all the correct information has been given as looking for a property is very competitive. This can help in securing the property
To put in an application expats will be required to show the following:
• Proof of Income and bank statements for the last three months
• Proof of Identity – i.e. passport, drivers license
• Rental agreements from previous properties
• References (This is the most important part of the application) It includes the current
employer and a previous landlord
• Expats may need to put down a deposit with the application. If you are not successful in getting the property this will be returned
Estate agents will check the references for expats and then the application will be sent to the owner of the property for a final decision. Agents are not able to favour one application over another
5. Signing the lease and moving in
When an expat rents a property in the country, there is no particular amount of rent that will need to be paid in advance. However, when you are about to sign the lease, a payment of the first fortnight/month’s rent will need to be paid alongside a bond which is the amount of a month to six weeks rent.
The bond that expats will be paying is a security deposit, which protects them from any damage done to the property or any bills left unpaid by the tenant. In all states, other than Tasmania and the Northern Territory, the bond which has been paid will be kept by an independent government owned body.
Before moving into the property, ensure that you check the place for any damage that has already been done by the tenant. Expats will then need to bring this forward to the agent or landlord of the property. This way at the lease’s conclusion, the costs of any items are not accounted for on the inventory and will be taken off from the bond.
It is suggested that expats ask the agent if there are accounts set up with utility providers, this will save having to pay a fee. For each state there is a tenants association for any support you may require to protect the rights of the renter along with many rules and regulations.
This process will be different dependant on the state area you will be moving to
Mortgages in Australia/ Buying a house
If you are an expat who has been granted permanent residency you are eligible for a First Home Owners grant. This is a one off grant where residents can get AUD 7,000 put towards their first home. If you are a permanent resident or on a certain type of visa and you are considering buying a house you may want to take a loan.
If you are looking to get a loan in Australia, this will be dependent on what visa you’re on and how good your credit rating is.
Expats may need to apply for permission with the Foreign Investment Review Board to buy real estate. The FIRB will then make a decision considering your circumstances.
The amount of the mortgage will depend on the lender and the financial climate. Many lenders will only lend up to 80% of the value property to residents. If you require more then you will need to contact a specialist mortgage broker. Expats on a temporary resident visa are able to borrow up to 80% and expats who are on a Doctor working visa, permanent residents and spousal visa’s are able to borrow between 90 and 95% of the value for the property. This total which is then granted is related to the income of the individual applying for the mortgage. To obtain a successful mortgage application you should be working for a couple of months in the country and if you can prove you have a good credit rating in their home country.
Whatever you’re visa status, expats will not need to pay higher chargers for the mortgage; however will need to consider they may only have a few lenders willing to offer them a mortgage. If expats agree to pay off their mortgage in a shorter time, better interest rates may be given. This would result in paying more each month.
When buying a property in Australia, expats must pay Stamp Duty on the purchase price. If you are buying a property for the first time, you may be exempt but there are different rules for different areas so for more support expats are advised to look at their state government website.
Other fees when buying a house include:
• Lender application fees
• Lenders mortgage insurance
• Mortgage registration fee (Goes to the government)
• Legal fees (Solicitors charge)
• Land transfer fee
• Cost of conveyancing
• Checks on the structure and pest situations
• Home insurance once the sale has gone through