Buying Properties in Australia
1 Choose an real estate agent
Buy a house
Because most Australian real estate developers do not have a sales team and overseas buyers may not know much about the policies, procedures, loans, laws, and other aspects of buying a house in Australia. Therefore, overseas buyers might want to find a local Australian real estate agency for consultation before purchasing a land property and help with law/policy cases during the process of buying a house.
Buy a farm
Private sellers exclusively authorize almost all farm transactions in Australia to local farm agencies. For overseas buyers, the policies, procedures, loans, and legal issues related to this series of transactions are quite complicated. Therefore, most overseas buyers will entrust local qualified real estate agents in Australia to conduct relevant consultation and entrustment.
2 Reservation of house/farm
Buy a house
First, overseas buyers choose satisfactory real estate according to their personal preference for the area and house type. Then buyers will confirm with the real estate agent if they are qualified to buy their desired properties. The agent will help the buyer fill out the reserved form, attach the required personal identification documents, and pay a deposit, usually 5,000 Australian dollars as the reservation fee of the property. (The deposit will be refunded to the buyer later or as part of the purchase price) Generally, buyers can choose their favorite real estate with confidence and do not have to worry about being deceived in Australia.
Buy a farm
Oversea buyers can submit their offer according to farm agent after their on-site investigation of their desired farms. Agents will submit an official hand writing offer along with personal identification documents and an amount of deposit (generally $2,000 to $5,000). If the landlord agrees to your price and delivery conditions, both parties can sign a formal contract. Generally there is 3 days cooling-off perisod (the deposit will be deducted from the 10% down payment)
3 Selected an Australian lawyer
The Australian government stipulates that both buyers and sellers must have their lawyers to arrange the settlement. Overseas buyers must choose an Australian-approved lawyer to explain and assist and act as your agent when handing over the house.
4 Apply for a house purchase permit for overseas residents
Buy a house
Buyers must submit a house purchase application to the Australian Overseas Investment Review Board [FIRB] and pay an application fee. Buyers need to fill out an application form and submit it to the Overseas Investment Review Committee. The buyer’s lawyer generally assists this process.
Starting from January 1, 2021, the fees for applying for FIRB are as follows:
* Overseas investors who purchase properties under $1 million and $1 million in Australia must pay an application fee of $6350;
* Overseas investors who purchase real estate worth between $1 million and $2 million must pay an application fee of $12,700;
* Overseas investors who purchase real estate worth between $2 million and $3 million must pay an application fee of $25,400;
For more details, please read the official website of the government: https://firb.gov.au/guidance-resources/guidance-notes/gn10
What is FIRB? FIRB is the Foreign Investment Review Board abbreviation, and the Chinese translation is the Australian Investment Review Board.
Who needs to apply for FIRB?
Except for Australian permanent residents and Australian citizens, all foreigners need to apply for FIRB. Note that TR holders also need to apply for FIRB approval, which is an Australian temporary resident.
Who can buy second-hand housing?
Foreigners who have valid visas for more than 12 months in Australia can buy a second-hand house for self-occupation. Still, they must sell the second-hand house three months before the visa expires and leaves the country.
Buy a farm
Fee tiers increase every $2 million of consideration; Fees start at $6,350 for acquisitions of $2 million or less, rising to a maximum of $503,000 for acquisitions of more than $80 million.
5 Sign the purchase contract
Buy a house
The developer provides a house purchase contract to the buyer or the buyer’s representative lawyer. The buyer signs the contract after consulting his lawyer and fully understanding the contract.
The buyer must hand over the signed sales contract and 10% down payment record to the lawyer. And the lawyer will hand it over to the developer to sign and implement. The valid sales contract signed by the developer will be returned to the lawyer and then refer it back to the buyer.
As each state’s relevant laws in Australia are different, the contracts of different real estate projects are also different.
Buy a farm
Generally, the REIV standard contract of the real estate association or the contract provided by the lawyer entrusted by the landlord is adopted. The signing process is simple, and the lawyers of the buyer and the seller have completed the communication.
NEW LISTING: Lot 2/150 Radnor roadPort Arthur TAS 7182
6 Pay a 10 % down payment on the purchase of a house and stamp duty
Buy a house
Buyers need to pay 10% of the purchase price as a down payment within the time specified in the contract, usually within two weeks. This amount of money can be transferred to the bank trust account by the developer’s lawyer. (the lawyer representing each development project is different) The Australian government supervises these trust accounts. Your 10% down payment won’t be transferred to the developer until the property is successfully delivered.
Regarding stamp duty, Melbourne pays stamp duty when the house is handed over. In addition to paying stamp duty to the government and FIRB, buyers do not need to pay any other hefty fees.
Buy a farm
The purchaser of the farm needs to pay 10% of the purchase price as down payment within the time specified in the contract, usually within two weeks. This amount of money can be transferred to the bank trust account by the developer’s lawyer. (the lawyer representing each development project is different) The Australian government supervises these trust accounts. Your 10% down payment won’t be transferred to the developer until the property is successfully delivered.
Regarding stamp duty, buyers pay stamp duty when the property is handed over. In addition to paying stamp duty to the government, buyers do not need to pay any other hefty fees (whether there is a business in the specific farm, the fees may be different, such as Gst payment, etc. Please consult the buyer’s lawyer).
7 Apply for a loan
Buy a house
In the first three months of the completion of the property, the buyer’s lawyer and the agent will notify the client that the property is about to be completed.