Australia investment and purchase of dry goods series! An article to let you know the process of buying a house in Australia
For many people who want to invest and buy a house in Australia, it is of course necessary to understand what steps are required to invest and buy a house in Australia before investing. Yixing Little Cute today organized 9 steps for you to invest and buy a house in Australia. After reading it, you can roughly understand the entire process of investing and buying a house~
Step XNUMX: Choose an intermediary
Since overseas investors may not know much about the policies, procedures, loans, laws, taxes and other aspects of buying a house in Australia, most overseas investors will find a local Australian real estate agency for consultation and help before buying a house. Deal with various matters in the process of buying a house.
Professional investment consultants will choose real estate projects for overseas investors that are widely recognized by locals, stable in rental, and have long-term appreciation potential. In addition, most real estate developers in Australia do not have their own sales teams, but instead hand over the work of sales to real estate agents. This is why both local buyers and overseas investors in Australia need to find agents.
Step XNUMX: Choose a real estate project
After negotiating with the intermediary and selecting a satisfactory house, overseas buyers must first pay a reservation deposit, usually 5,000 Australian dollars, and apply to the developer to keep the house.
If within the 14-day "cooling-off period", overseas buyers change their wishes, the developer will refund the deposit in full. It should be noted that overseas investors can only buy new houses and off-plan properties (off-plan properties), not second-hand houses.
Step XNUMX: Sign the purchase contract
The developer provides the house purchase contract to the lawyer representing the overseas house buyer. The buyer signed the contract after consulting his own attorney and fully understanding the contract. At the same time, the developer also needs to sign the purchase contract and provide the purchaser with a signed contract by both parties. Then, the house purchase contract becomes effective.
As the relevant laws of each state in Australia are different, the contracts of different real estate projects are also different.
Step XNUMX: Apply for FIRB Overseas Residents' House Purchase Permit
International investors need to 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 for review.
This process is generally assisted by a lawyer representing the buyer.
Since December 2015, 12, FIRB
The application fee is adjusted to:
1) For the purchase of real estate under 100 million Australian dollars, the application fee is 5,700 Australian dollars;
2) The application fee is 100 Australian dollars for the purchase of 200 million to 11,500 million Australian dollars;
3) The application fee is 200 Australian dollars for the purchase of real estate of 300 million to 23,100 million Australian dollars
Step 10: Pay XNUMX% of the purchase deposit
Buyers need to pay 5% of the purchase price within the time specified in the contract, usually 7-10 working days
As a deposit. The deposit can be paid to the developer’s trust account or deposited into the buyer’s own
The bank will issue a guarantee for the account.
Therefore, the money is not really handed over to the developer. Before the formal settlement of the house, the buyer can still enjoy the interest income of the deposit.
Step XNUMX: Housing construction
The developer needs to complete the construction of the house within the time specified in the contract. During this construction period, except
To pay stamp duty to the government, buyers do not need to pay any other fees.
Loan: Overseas buyers can also apply for a loan in Australia, up to 80% of the appraisal of the loanable house (but 60% and 70% are more common), and the loan capacity is related to the income level.
Unlike in China, you don’t need to take out a loan immediately after the deposit is paid and before the house is built.
The loan is officially delivered to the buyer's name, and the loan will start to calculate interest from that day.
Step XNUMX: Pay stamp duty
To purchase Australian real estate, buyers are required to pay stamp duty to the government. Australian citizens (including PR) according to
Depending on the state, the amount is generally charged as a percentage of the total house price:
- $0-$25,000: 1.4% of the taxable portion of the house price
- $25,001-$130,000: $350+超过$25,000房价应交税部分的2.4%
- Over $960,000: 5.5% of the taxable portion of the house price
New South Wales
- $304,001-1,013,000: The amount over $304,000 is paid for every $100
$ 4.5 + $ 9,112
- More than $1,013,000: the part exceeding $1013,000 will be paid for every $100
$ 5.5 + $ 41,017
- Under $5,000: 0 stamp duty
- $540,000-1,000,000: the portion exceeding $81,000 is paid for every $100
$ 4.5 + $ 17,325
- More than $1,000,000: the part exceeding $1,000,000 will be paid for every $100
$ 5.75 + $ 38,025
Source: https://www.qld.gov.au/housing/buying-owning-home/advice-buying-home/transfer-duty/how-much-you-will-pay/calculating-transfer-duty/transfer -duty-rates
- Australian Capital Territory
- Below $200,000: $100 for every $1.20 (minimum $20)
- $200,001-$300,000: the part exceeding $200,000 will be paid for every $100
$ 2.2 + $ 2,400
- $300,001-$500,000: the part exceeding $300,000 will be paid for every $100
$ 3.4 + $ 4,600
- $500,001-$750,000: the part exceeding $500,000 will be paid for every $100
$ 4.32 + $ 11,400
- $750,001-$1,000,000: the part exceeding $750,000 will be paid for every $100
$ 5.9 + $ 22,200
- $1,000,001-$1,455,000: the part exceeding $1,000,000 will be paid for every $100
$ 6.4 + $ 36,950
- Above $1,455,000: Flat rate. $100 for every $4.54
Step XNUMX: Inspection before delivery
The developer’s attorney issued an official notification letter to the buyer’s attorney, notifying that the work has been completed. In the room
After the house is completed, the developer will invite buyers or their representatives to inspect the house. Buyers want
Take this opportunity to determine whether the construction of the house meets the standards stipulated in the contract.
Step XNUMX: Delivery of the balance and settlement
On the day of house delivery, the buyer must pay the full amount of the purchase to the developer, and the buyer’s attorney will negotiate with the developer’s attorney to complete the final settlement procedures with the contract and the house payment.
Buyers can then move into the new home. Unlike China, the delivery time in the Australian real estate contract is a time frame, and the exact date of delivery is not specified in the contract.
Receiving a house means that the house has been built, passed the inspection and acceptance, and transferred to the buyer's name on the day of delivery, not just a handover. If the house cannot be acquired due to the buyer’s reasons, the developer has the right to confiscate the buyer’s deposit and interest, or even claim compensation.
After reading it, do you have a general understanding of the process of buying a house in Australia? If you have any questions, you can leave a message~
Little cutie will launch more dry goods for buying and investing in the coming days!