Process of Buying a property in Australia

 

Budget and plan before you start:

You must do your research, make plans, and budget for buying a property in Australia.

You may have a certain place in mind, but it's always a good idea to consult with a real estate agent who can provide local insight and assist you in choosing an inexpensive region with high returns.

It's also crucial to ensure that you can afford the property. You must have a realistic and manageable budget in place since Australian banks will not lend to you until you can prove that you can afford the loan.

Pre-approve your loan:

You must receive pre-approval before you begin buying a property.

On the market, good houses don't last long.

While others are still putting up their mortgage applications, the buyer with a pre-approval generally gets the greatest deals.

What's more, you know if you qualify for a loan and how much you may borrow.

As a result, we highly advise you to avoid purchasing a home expected to settle in more than three months.

Application for a mortgage:

As a non-resident, applying for a mortgage might be difficult due to the complexities of lending requirements.

There are just a few lenders who are willing to lend to overseas investors.

We've put up a simple tool that gives international investors the best accessible Australian interest rates.

Ensure you have all the appropriate loan paperwork, such as pay slips, tax returns, and a letter of employment, to show your income.

Locating a property:

Now is the best time to travel to Australia and start looking for a home.

Another choice is to hire a buyer's agent.

If you don't want to hire a buyer's agent, it's a good idea to utilize comparable sales to determine the property's worth.

To gain a more realistic valuation, compare your homes to similar-sized properties that have sold outside of the complex.

Negotiate the price of the acquisition:

Australian houses sell for up to 10% less than the asking price. Property in desirable suburbs can occasionally sell for more than the stated price!

Some real estate websites may provide the "discounting percentage" for suburbs, the average percentage below the listed price at which a property sells.

If you're using a buyer's agent, they'll help you to negotiate the price.

Before signing, get a contract and allow your solicitor or conveyancer to review it and, if required, add any additional terms.

Formalize your mortgage approval:

When you've discovered a house you want to buy, you may send the contract to your mortgage broker for formal approval.

Remember, you shouldn't commit to buying a property until your mortgage has been accepted in writing.

The real estate agent may seek to convince you to sign because there are "other bidders," but you should only do so if there is a cooling-off period.

Settlement:

When the property changes hands and your loan is issued, the word "settlement" is utilized.

This will be handled by your conveyancer or solicitor in collaboration with your bank and mortgage broker, and you will not be required to be present.

Your lender is holding the title to the property for safekeeping, and the keys may be picked up from the selling real estate agent. If the property is currently rented, the property manager might begin marketing the unit to potential renters.