The Australian government gives citizens and permanent residents more leverage in the real estate world. But foreign nationals can also own properties in Australia. However, the difference between a citizen and a foreigner isn’t much. An Australian has access to many home loans, while a foreigner has limited access. Before foreign nationals can purchase a house, they have to list the properties as investments. In addition, they must get the go-ahead from the government. According to Hyde Property Group, owning a property in Australia is beneficial whether you’re a citizen or a foreigner. Hyde Property Group is a real estate firm in Australia. The Melbourne-based company buys and sells Australian luxury properties.
House Purchase Tips
The Board that assesses foreigners who wish to purchase houses in Australia mandate foreigners to submit an application. The same goes for foreign nationals who wish to invest in real estate. For those whose applications have been approved, these are the things they should take note of.
- For real estate investment, the house shouldn’t be an established home.
- But in case you have an established house, you must occupy the house. And if you want to move out after staying in it, you must sell it.
- You should construct a new building on unoccupied land or the building must be new.
Charges For Foreign Homeowners
When foreigners want Board approval, they will pay a certain amount as application money. The money depends on the type of property and its value. As a result, the fee isn’t a fixed one and is subject to these conditions. For those that are purchasing a 3 million dollar house, the application fee is around 38,000 dollars. And for those buying properties below one million dollars, the application fee is somewhat around 6,000 dollars. To know the specific amount the Board will charge you, check the Board’s website. You can also find the Board’s terms and conditions there.
Stamp Duty for Foreign Nationals
Foreign citizens are charged stamp duty for purchasing property. The money is different from the application fee and normal purchase price of the property. The stamp duty fee is eight per cent of your surcharge in NSW. Apart from that, there is a transfer duty on the property purchase. Stamp duty charges are different in every state in Australia, therefore, find out the stamp charge for your state and locality. If you pay all the money you are supposed to pay, your purchase journey will be easy.
Can Someone with a Temporary Residency Purchase a House?
Residents with temporary visas must have Board approval before purchasing a house. This includes people with student visas and 457 work visas. The reason for this is that those with temporary visas are recognized as foreign nationals, especially when they want to invest in real estate. Hence, they must adhere to the foreign nationals’ home purchase guidelines. The Hyde Property Melbourne, Australia also has a list of requirements for its foreign buyers.
Who is Exempted From the Limitations?
A person who is in a marriage-like relationship or is married to an Australian doesn’t need Board approval. That is, they can own a house without getting Board approval. Take note that both parties must have a joint tenant contract in place. Also, New Zealanders with temporary visas are exempted from other rules that other foreign nationals are subjected to. The reason is that New Zealand nationals enjoy the same treatment as Australians who want to purchase a house. However, it is different if you want to purchase a house in Australia while you reside outside Australia. You will pay more money as a foreigner if this happens.
Can A Non-citizen Apply For a Mortgage?
Yes, foreigners can apply for mortgages in Australia. However, it’s quite difficult due to the stringent regulations. Several mortgage firms in Australia require borrowers to be from Australia. Otherwise, you can’t get the loans from them. The few that give the loans have more rules that foreigners must follow.
These rules are:
- They ask for more interest rates than the stipulated rates.
- Foreign borrowers must pay a higher deposit than Australian borrowers.
- There are restrictions on the income foreigners earn to make them eligible for the loan.
- Must get house purchase approvals from the Board.
But don’t be discouraged by all these rules. You can search for other options, like foreign banks that have an Australian branch that gives mortgages to foreigners.
Where can a Foreigner Get the Best Mortgage Plan?
Many reputable mortgage firms offer good home loans to foreigners. Some of them have even received awards for their reliable and trustworthy services. To know which company gives favourable mortgages, go online to make your findings. Or you can ask Australian citizens about reputable mortgage firms that offer mortgage services to foreign nationals.
Are the Properties Expensive?
The cost of buying properties anywhere depends on so many factors like size, where the property is located, and so on. The best thing is to know the property price range in your locality and have a budget.
Before you purchase an Australian home, find out the many financing options for foreigners. You can read through the home financing guides they have for foreigners. If they have a mortgage comparison list, you can also check them out. Hyde Property Group advised foreigners to explore the option that suits them best. Otherwise, you find yourself unable to pay the loan or find yourself ineligible for the loan.
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