The Buying Process 2016-11-08T06:58:09+00:00

The Buying Process:

Made Easy by Australia’s #1 Mortgage Brokers

 

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Want to buy Property in Australia but live Overseas? Let us explain the buying process for you.

When it comes to investments there lots of options businesses, stock market and properties. If you want a low risk investment with steady growth over time, then you can’t go past the property market. especially the Australian Property market.!

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The Buying Process

Conveyancer

You’ll need a conveyancer or a solicitor to take care of the legal work for you. Their job is to complete searches on the property, manage the transfer of ownership and review the contract before you sign it.

Keep in mind that your appointed conveyancer must be in the same state as the property you’re buying or at least be licensed to deal with that state. For Western Australia (WA), they are called settlement agents.

It is common for a real estate agent to recommend a conveyancer to you however we suggest that you choose one that is likely to be impartial.

Mortgage broker

A good Australian mortgage broker, with experience in helping non-residents to apply for a loan, is an essential member of your team of experts.

The mortgage broker can be anywhere in Australia. They don’t need to see the property you are buying. For most residential mortgages and loans, their services are free.

If you want to buy a property in Australia then speak to an expert Australian mortgage broker. We’re specialists in non resident mortgages  and are also a member of both the Mortgage and Finance Association of Australia (MFAA) and the Credit Ombudsman Service Limited (COSL).

We can finance properties Australia-wide and we regularly work with international borrowers. We have a panel of over 40 lenders to choose from which ensures that you’re getting the best mortgage available.

If you need finance to purchase property in Australia then please call us on 03 9398 3862 (+61 3 93984862 from outside Australia) or complete our free assessment form to discuss your options.

Accountant (if required)

You don’t need to appoint an accountant, but there are a few benefits in having one. Your accountant can help you structure your financials and save you money on tax.

If you’d like to set up Australian companies or trusts to hold your investment, then you’ll need an accountant. Your appointed accountant can be located anywhere in Australia.

Buyer’s agent (if required)

A buyers agent is also very useful if you’re located overseas and can’t physically inspect the real estate you’re buying.

The main job of a buyer’s agent is to source and negotiate the ideal property for you. They’ll deal with the real estate agents for you and will ensure that the property you’re buying represents a good opportunity.

Your buyer’s agent must be licensed and have some presence in the state that you’re buying a property in.

Keep in mind that a buyer’s agent should give independent and objective advice, so should not be selling his/her own properties. Some buyer’s agents will charge a fixed fee, while some other will charge an upfront fee as well as a percentage of the purchase price of the property.

A true buyers agent will not earn any commission from the seller. If they are accepting commission from the seller than they are working for the seller not for you! We can put you in touch with some reputable buyers agents if you need assistance.

In order to obtain finance it’s essential that you obtain a pre-approval before you begin looking for properties. However, the lending criteria for non-residents can be very complex!

  • When you talk to your Loanseeker broker they will help you through the process
  • Ensure that you prepare all necessary loan documents, such as payslips, tax returns or an employment letter to prove your income.

 

To ensure that you get approval, speak to us on 03 93984862 (+61 3 9398 4862 from outside of Australia) or complete our free assessment form and our staff will get back to you.

Our mortgage brokers can offer free assistance and will help you with your loan application

It’s essential for you to get your mortgage pre-approved before you begin looking for a property. Good properties don’t stay on the market long.

The buyer with a pre-approved loan usually snaps up the best investments while the others are putting their loan applications together. More importantly, you know that you’re eligible for a loan and how much you can borrow.

Why waste your time looking for a house or unit only to find out that you can’t get a loan?

Talk to your Loanseeker Broker today to get Pre-Approval organised.

If you’re a non-resident or a temporary visa holder, you’re legally required to get permission from the Foreign Investment Review Board (FIRB) if you want to buy property in Australia.

Australian Citizens, Australian permanent residency holders and New Zealand (NZ) citizens are exempt from obtaining FIRB approval.

Getting FIRB approval is a simple process and usually takes up to two weeks from the date the application is lodged.

You won’t actually apply for FIRB approval until you have found a property. However you do need to investigate their requirements so that you don’t buy an ineligible property for foreign investors.

Now is the time to visit Australia and begin your search for a property. The other option is to use a buyer’s agent

If you decided not to use a buyer’s agent, then it may be a good idea to use comparable sales to value the property. Make sure that you compare your properties to other properties that have sold outside of the development as this will mean you get a more accurate value.

Often the bank chosen by your mortgage broker will value the property, however the banks often don’t tell you if the valuation comes in short!

Our mortgage brokers will always inform you if they become aware that you have overpaid for a property.

As a general rule, Australian properties usually sell for up to 10% less than their list price. This varies depending on the market, location and type of property. Property in popular suburbs sometimes sell for more than the price that they’re advertised at!

Some real estate websites will publish the “discounting percentage” for particular suburbs, which is the average percentage below the listing price that a property sells for.

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

You can ask for a contract before signing, and get your solicitor or conveyancer to look at the contract and add any additional conditions if necessary. A common condition is that the sale is “subject to FIRB approval” which allows you to cancel the contract in the unlikely event that you don’t get approval from the Australian government.

Each state of Australia has their own property laws, use your conveyancer or solicitor’s expertise to help guide you. If the vendor allows a cooling off period you can put a holding deposit and sign the contract.

Refer to your conveyancer or solicitor, they’ll let you know what checks you have to do before buying and will let you know when it’s safe to sign the contract to buy the property.

If you’re unable to get a loan during the cooling off period, your maximum penalty is the holding deposit, usually up to $1000, and again please check with your conveyancer or solicitor as this can vary across the different states.

If you plan to sign the contract prior to the cooling off period, ensure that the contract of sale includes the clause “subject to FIRB approval”, otherwise you’ll be breaching the law.

When you’ve found a property to buy, you can then forward the contract of sale to us as your mortgage broker to proceed with the formal approval.

Remember, don’t commit yourself to buy a property until your mortgage is formally approved. If there’s a cooling off period it’s okay to sign the contract, otherwise don’t sign the contract until you know that you can get a loan.

Once you forward the contract of sale us we’ll usually obtain the formal approval within a week.

You can exchange your contract after your loan has been formally approved and your solicitor or conveyancer gives you the go ahead. Normally, you’ll need to put down a 10% deposit.

The amount of the deposit is negotiable and differs between the states. Note that once you’ve committed to a property you can’t back out, so please seek legal advice before signing any contracts or paying your deposit.

It’s very important that the contract you’re signing has the clause “subject to FIRB approval” and 30 days must be allowed for a FIRB decision. At this point, it’s vital to check with your conveyancer or solicitor that the clause is stated in such a way so as to ensure that if your FIRB proposal is rejected, you won’t lose your deposit.

A FIRB Application is simple to do and will usually be taken care of by your conveyancer. You may need to provide a copy of the approval to your lender prior to your loan being advanced.

Once you have exchanged the contract, forward a copy of the signed contract to the FIRB for approval.

Your bank would have sent out the loan contract to you after formal approval.

You can ask your mortgage broker to go over it with you, or get help from your conveyancer or solicitor. You have the right to obtain independent legal advice about your loan contract.

To accept the loan offer, sign the appropriate sections and return the loan documents back to the bank.

Do a final inspection on your property the day of settlement. This can be completed by your buyers agent if you’ve hired one.

Settlement is the term given to when the property actually changes hands and your loan is advanced.

This will be handled by your conveyancer or solicitor in conjunction with your bank and mortgage broker, you don’t need to be there for this to happen.

The title for the property is held by your lender for safe keeping and the keys are available for pick up from the selling real estate agent.