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Purchase of real estate in Australia

In this country there live the most smiling people on the planet, the lowest inflation, all the year round summer here. Locals call it "the lucky country" that in translation "the successful country" means. How to work with that who decided to acquire real estate in Australia that their purchase was accompanied by characteristic Australian good luck? InfoAdvisor.net understood it.
Австралия на карте In this country there live the most smiling people on the planet, the lowest inflation here, and still here all the year round summer. Locals call it "the lucky country" that in translation "the successful country" means. How to work with that who decided to acquire real estate in Australia that their purchase was accompanied by characteristic Australian good luck? InfoAdvisor.net understood it.

Real estate prices

The palette of offers for potential buyers of housing in Australia is quite extensive today. For sale the real estate for every taste – from smart apartments in exclusive projects to modest studios and apartments is offered. Private houses enjoy wide popularity. The average price of the Australian house of 180 square meters fluctuates around 460 thousand Australian dollars now. The average cost of apartments makes about 365 thousand Australian dollars, this type of real estate in Australia also enjoys popularity at foreign buyers.
Покупка недвижимости в Австралии Real estate prices in Australia are very democratic, not their availability, but broad dispersion is meant here. The most popular Australian cities – Sydney, Melbrun and Brisban, grows popularity of Perth recently.
According to the Australian Property Monitors company in the first half of 2008 the average price of the house in national currency – the Austrian dollars (AUD) made: in Sydney – about 680 thousand; in Melbruna and Brisbana – around 550 thousand; in Perth – about 640 thousand; in Canberra and Darwin – from 575 to 612 thousand; in Adelaide – about 512 thousand; in Hobarda the lowest cost – around 325 thousand AUD.
The average cost of apartments (in AUD): in Sydney – 450 thousand; in Melbrune – 412 thousand; in Brisbane – 400 thousand; in Adelaide – 325 thousand; in Canberra – 425 thousand; in Perth – 450 thousand; in Hobarde – 275 thousand; in Darwin – 400 thousand.
Now the average price of square meter in this state – $3-3,5 thousand; prestigious real estate – from $6 thousand.
Many factors, in particular, geography of its arrangement have impact on real estate cost in Australia: the closer to the large cities, the objects are more expensive, degree of remoteness of housing from the sea is of also great importance. In suburbs the cost of housing is approximately twice lower, than in the capitals.
In Australia the nature practically everywhere adjoins to a civilization that is caused, including, and national policy. Therefore on a residence choice the defining value renders not surrounding beauty and natural sights – it enough in each staff, and more likely a work arrangement (in case of moving on the PERMANENT RESIDENCE), places of study or individual preferences. So, for example, until recently in a popularity rating business Sydney was the invariable leader, however Queensland, namely resort Gold Coast (Gold Coast) using glory at foreign buyers who acquire real estate for rest and periodic accommodation towers in recent years. Some researchers are sure what exactly Queensland can become in the future the most expensive Australian state.
    Seasons in Australia are opposite to the European: air temperature reaches the peak in December-January, and the smallest value – in June-August. However, the winter in Australia at all not to what Russians got used, stem of thermometer does not fall to a season most more cold below 12-13 degrees Celsius, and average temperature in the winter – 20-23 degrees above zero.

Legislation

Любой иностранный гражданин имеет право приобретать недвижимость в Австралии с плана (на этапе постройки), а также готовые объекты, где никто еще не жил Any foreign citizen has the right to acquire real estate in Australia from the plan (at a construction stage), and also ready objects where anybody did not live yet. It is also possible to buy the land plot, but only under building; upon purchase it is necessary to show the plan of the house, thus construction has to begin no later than one year from the moment of purchase. In addition the foreigner has the right to buy old uninhabited real estate, to demolish it and to construct on this place new, the bigger area. Thus the sum equal to at least a half of that was paid for purchase has to go for construction.
The transaction of purchase and sale in Australia has to be allowed by special body – the Investment supervisory board (Foreign Investment Review Board – FIRB). For obtaining permission it is necessary to submit the application on the special form (R3 form). The decision is usually made within a month from the moment of filing of application. In most cases builders get permission to sell objects of real estate under construction to foreigners; and under the law only a half of apartments in the built building can be presented to sale for foreign citizens. In case of low construction this rule also works, only 50% of private houses on a building site are allowed to sale. If the builder got permission to property sale to foreigners, those should not make out independently this permission upon purchase of object directly at the builder any more.
InfoAdvisor.net pays your attention that purchase of secondary real estate in Australia is possible for the foreigner only in the presence at it any valid temporary visa, which validity period not less than 12 months at the time of delivery of permission of FIRB to purchase of this object. Thus by the time of the termination of period of validity of the temporary visa the object has to be sold, otherwise special measures will be applied to the owner of real estate, up to compulsory deportation. The acquired object can be used only for continuous accommodation of his direct owner. Delivery of real estate in rent is forbidden, also the owner has no right to move, without having sold housing. As a rule, the secondary housing is offered for sale by agencies on real estate; thus the commission for services of intermediaries (usually it is 2 or 3% of housing cost) the seller, simply including it in a project cost pays. Despite it the prices of secondary real estate in Australia after all 10 times less the cost of new objects – on average by one and a half times.
Foreign students of universities of Australia have the right to buy secondary real estate without the permission of FIRB (in the presence at the time of transaction of the valid student's visa more than 12 months). The object has to be located near educational institution, its project cost cannot exceed 300 thousand AUD. After purchase the student under the law cannot live in other place, in case of its moving, and also to a visa completion date the object has to be sold.

Process of purchase of real estate in Australia

Покупка недвижимости в АвстралииFor purchase of primary object of the Australian real estate you need to pay the initial deposit of 10% of real estate cost. The transaction can be carried out by two options.
The first is that for purchase commission you do not leave to Australia, and choose object on the site of this or that construction company. After the object is chosen, you should contact the representative of the company builder and to receive from it all necessary information on the real estate which interested you. For the signature the contract after you sign it will be sent you and will send to back construction company, it is necessary to transfer 1% of real estate cost into the account of the builder. After that by rules you have to grant the right to run your business to the lawyer working in that Australian staff where you buy real estate. In turn, the company builder also transfers the right of maintaining the transaction to the lawyer. Further process of purchase and sale is carried out between two lawyers, each of which has to have the license in this staff. To find the lawyer representing your interests it is possible in electronic sources, for example, through the corresponding forums. At it you can get advice on all questions of purchase.
After a while since that moment as you will bring 1% of real estate cost, you should transfer another 9% of cost of the bought object into the account of the company builder. From documents only the passport is necessary for you for signing of the contract with the builder. While construction lasts, you have the right to concede the right for possession of object, having paid thus from 2 to 3% of its cost to the state treasury.
When your apartment is put into operation, you will have to pay the remained 90% of a project cost. If you do not make it, your contract will be considered as the invalid. The initial deposit in this case does not come back.
If you want to examine personally before purchase the real estate object which interested you, you need to receive the visa and to arrive to Australia, previously having paid 1% of real estate cost for the account of the company builder. In such option process of purchase and sale will be analogous almost described above, behind an exception that you will personally study documents and look at the object interesting you.
If you buy already constructed housing, after payment of the initial 10% deposit you grant the remained sum according to the arrangement with the company builder, usually within 1-3 months after the first contribution.
If you buy real estate at the second hand, keep in mind that according to the Australian laws the realtor or agency by all means have to have the license and permission to work in this staff. At the same time in Council of regulation of foreign investments it is necessary to specify, whether foreign citizens have the right to buy the object which interested you. Realtors estimate the services on average at 1,5-2% of real estate cost; for this money the intermediary will offer you real estate options by your individual inquiries, will organize to you survey of the pleasant objects and when you choose among them the most suitable, will help to issue the transaction of purchase and sale. Directly for the conclusion of the contract on rendering services by realtor agency you need only the document proving the identity; if you acquire real estate on credit (the credit for housing is also issued to foreign citizens), in the course of registration of the transaction the package of documents can increase considerably.
Usually receiving the credit requires the identity card, the contract for purchase of housing, the document confirming payment of the deposit (in most cases the sum of the deposit makes 30% of real estate cost), and data on the income. As information on the income forms can make the indication of a salary and the contract from a place of your work or accounting reports of the company in the last two years, if you the individual entrepreneur. Mortgage loans are given by banks for a period of up to 30 years under 8-9% per annum.
Покупка недвижимости в Австралии After transaction the owner receives the contract of purchase and sale which confirms the right of its possession of this real estate on hands.
We pay your attention that additional expenses upon purchase of real estate of subjects it is less, than degree of readiness of housing is less. Thus, upon purchase of housing at a construction stage you pay the tax equal on average to 1% of a project cost; if the real estate is already constructed, this tax can grow to 2,5%. In addition there are stamp duties making in different cases from 1,4 to 5,5% of housing cost. In total the additional expenses connected with acquisition of real estate in Australia can make to 9% of a project cost.
How there is a purchase of object of secondary real estate? First of all, you need to pay to agency on real estate the small deposit as the certificate of that you really would like to buy this object (the size of the deposit fluctuates around one thousand AUD). The great value upon purchase of secondary real estate gains ability to bargain; so, if you do not call agree to the price quoted by the host, can that which consider suitable. The probability what exactly on it you also will get this object as owners of secondary real estate in Australia make concessions is great.
As well as in a case with primary real estate, the contract of purchase and sale of secondary object is made by two lawyers – from the seller and from the buyer, that is with yours. Also the realtor also participates in drawing up the document. Belongs to its duties, first of all, to talk over with the owner of object on decrease in the price declared to them. Depending on an outcome of negotiations three options are possible: the consent of the seller to sale of object at your price is received; compromise between the seller and the buyer and determined price which suits both parties is reached; the contract is rejected, and in this case to the buyer have to return his initial deposit.
Day when the seller and the buyer sign the contract, is considered "zero". Counting from it and on the termination of the fourth day, the period of expectation during which the buyer has the right to refuse the contract lasts. In case of refusal the buyer, i.e. you, pay 0,25% of the project cost specified in the contract.
With zero on the seventh (or till the fourteenth day if it provides the contract), at the initiative of the buyer inspection of the bought object for the purpose of identification of the latent defects can be carried out in is mute. In any day of the specified period you can independently invite the independent inspector for carrying out procedure which will cost from 300 to 400 AUD. It is possible it and not to do, but InfoAdvisor.net nevertheless recommends it to make, in order to avoid a situation when after purchase comes to light that the house which was pleasant to you literally goes to pieces. During inspection you receive the document in which the real condition of object will be specified hands. On the basis of these data you can refuse the contract, anything thus without losing, to demand to eliminate defects or to reduce the price. It is important not to be late with presentation of the document, it has to be published no later than 17 hours of the last day of the specified period.
Other important moment is financing of purchase of object. If at you not enough own means, you need to learn about possibility of granting the credit to you local bank before starting search of real estate. The C zero on the fourteenth (or on the twenty first if it means the contract) day you need to receive a consent of bank on additional financing as if you will not bring an overall cost of the acquired real estate in time, penalties can be applied to you. If during the specified period the bank refused to you, your contract ceases to work, but you thus lose nothing.
The bank carries out own inspection of the dwelling for the purpose of determination of its real cost. If he estimates object below, than is specified in your contract, you have the right to demand revision of cost or to refuse the contract without loss.
Покупка недвижимости в Австралии Since 17.00 of the fourteenth (or the twenty first) day your contract starts working without restrictions. Next day you have to place other part of money for a real estate object. Your lawyer and the lawyer of the seller start making out the transaction of purchase and sale, and you formally become the owner of object. When process of purchase and sale comes to the end finally – depends on terms of the contract. The maximum term of the final introduction of the new owner in the rights – the 60th day if to count from zero, that is in two months after signing of the contract.
That day when your contract starts working without restrictions, it is desirable to take care of its insurance which, most likely, you will be able to issue free of charge. It becomes to be secured for that period when you are an owner only formally, without living there actually. If the object somehow suffers at this time, you will be able to demand indemnification. The same concerns also the objects of primary real estate which are already constructed, but not occupied – they too need to be insured on a case of unforeseen circumstances.

Visa

Самый простой способ получения визы – оформить туристическую, которая дает вам право находится на территории Австралии в течение 3 месяцев The object suitable you can be looked for directly on a place, having gone on "the green continent", or studying the sites of the companies specializing on property sale in Australia. The easiest way of receipt of a visa – to issue tourist which grants to you the right is in the territory of Australia within 3 months.
For receipt of a visa it is necessary to fill in the application form in a form 48 R, to pay a visa fee (75 Australian dollars at the rate in rubles), to provide the copy or the original existing international passports, all previous international passports or their copies, the copy of information pages of the Russian passport, the proof of the financial solvency (for example, an extract from the bank account, documents from a work place on the income in three last months, etc.), data from a work place on a post, a salary, nature of the granted leave. The health insurance is also necessary.
If you already have a contract with the builder confirming your desire to buy this or that real estate object, you can provide it in Department of Immigration of Australia as the basis of your trip. It will significantly reduce and will facilitate to you terms of issue of visa.
As purchase of housing in Australia does not grant the right of automatic receiving residence permit, to make out the visa allowing you to be in the territory of the state it is necessary separately. If you are not going to work in Australia or to open there own business, and buy housing for the purpose of periodic rest on "the green continent", you will be is ideally suited by the multiannual tourist visa allowing to drive for 12 months on the territory of the country it is so much times, how many you want. Thus continuously you can stay in the territory of Australia within 3 months.

Utility payments

Utility payments in Australia average 50-90 Australian dollars a week (counting on a family from three people). Cost varies depending on the area and character of the dwelling.
Costs of utility payments in Australia if to compare to Europe, not really high. For example, the family from three people pays for water quarterly — 130 dollars, for gas during the winter period – 400 dollars, in the summer – 150. The electricity in the summer, thanks to the conditioner, costs 400 dollars, in the winter – 200 dollars.

Forecasts

Снижения цен на австралийское жилье вряд ли стоит ожидать Reduction of prices of the Australian housing can hardly be expected; the federal government already took a number of measures for preservation of the market of real estate. The considerable sum was allocated for priming of economy of the state to which important components purchase of real estate by foreigners is. Now some recession of the prices only of exclusive resort real estate is observed. At the same time it becomes more difficult to issue a mortgage on purchase of the Australian real estate; it is not excluded that terms of delivery of the credits will increase and the number of refusals will grow. According to forecasts of some experts during the subsequent period of real estate price in Australia will stiffen at the level of the first half of 2008.
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