As a long-term investment, buying a property is one of the most important financial arrangements in life; it is also the first step for many new immigrants to settle in Australia. Therefore, the first step is to find a suitable and satisfactory property; the second step is to find a professional and reliable property lawyer to protect your interests.
GEIC values the needs of every client, and our team is ready to provide high-quality legal services to every client. Call us today to enquire about our services on 02 9281 6299.
The first thing that needs to be done is to decide on the following details based on the individual guest’s reality:
Estimate your budget and your ability to get a loan;
Determine which district you want to buy a property;
Learn about public transport in each district, distance from the city, and schools nearby;
Determine whether you want to buy a House or a Unit, a new or a second-hand one.
When you get the contract from the agent, you need to contact the buyer’s solicitor to review the contract and amend it if needed. If it is a second-hand property, you need to do a pest inspection and a building inspection.
If there are no objections, you need to pay a 25% deposit and sign the contract. Then you will enter a cooling-off period, and at the end of this period, you need to pay the remaining 10% deposit.
In the case of auction properties, please note that there is no cooling-off period for the contract. You need to pay the 10% deposit directly and exchange the contract on the day of the auction.
Purchase of uncompleted building: Stamp duty is payable within 15 months if used for self-occupation and within 3 months if used for investment.
Purchase of second-hand property: Second-hand property is usually sold within 42 days and stamp duty is payable on the day of delivery. However, if the delivery time is longer than three months, stamp duty is payable within three months.
Depending on your financial strength, please contact a lender to get a loan approval.
Foreigners buying property: There are two ways to apply for a FIRB Overseas Investment Application. Firstly, contact a solicitor before a property inspection to apply for an application for a non-fixed property address. Secondly, amend the special terms and conditions and apply for an FIRB application for a specific property address during the cooling-off period after the exchange.
Buyers have the right to inspect the house one last time before the property settlement. If there is any damage and any inconsistencies from the first inspection, please contact a lawyer to negotiate a resolution with the seller’s lawyer.
The lawyer determines the balance to be paid at settlement, which includes 90% of the price of the property, lawyer’s fees, municipal fees, and adjustments fee to water rates. Clients are required to pay the balance in advance into a nominated/designated account at the relevant bank, using the PEXA electronic settlement system, which does not require the client to be present at the settlement and is entirely online.
The lawyer notifies the client or the agent that a settlement has taken place, and the client goes to the agent to pick up the keys.
Cooling Period
When exchanging contracts, there is usually a 5-day cooling period, during which the buyer can cancel the contract but must pay 0.25% of the purchase price to the seller. If both parties request to be exempted from the cooling period, a deposit of 10% of the full amount of the purchase price will be required at the time of the exchange of contracts and the contract will come into full effect at the same time.
Foreigners
Joint tenants
If one of the joint tenants dies, the other automatically owns 100% of the property.
Tenants in common
Joint tenants who buy a property in proportion to their share of the property. When one of the tenants dies, the property will be divided according to legal or testamentary inheritance.
Stamp Duty
For contracts signed after 1st July 2017, foreigners are required to pay an additional 8% stamp duty.
Right to cancel the contract
After the seller notifies the transaction, the buyer can contact the agent to inspect the house and has the right to cancel the contract if the size of the house is less than the contract by more than 5%.
Right to cancel the contract
The buyer’s right to cancel the contract will be enforced according to the contract, for most of the term homes. For example, the buyer has the right to cancel the contract if the size of the flat is more than 5% less than the contract plan. For second-hand properties, the buyer’s right to cancel the contract can be exercised by the special provisions of the contract in the case of loss of civil capacity or death. Please note that the details are different from one contract to the next and should be consulted with a lawyer.
Subsidies for the purchase of a house
The following incentives apply to purchase contracts signed from 01.07.2017: Incentives for first time buyers, a home purchase subsidy is available to Australian citizens or PRs who buy their first home in Australia, use it for self-occupation and live in the home for at least 6 consecutive months within 12 months of buying it.
AUD 10,000 subsidy for houses under AUD 600,000
Stamp duty exemption for houses under AUD 650,000
Reduced stamp duty for houses under AUD 650,000 – AUD 800,000
Stamp duty exemption for vacant land below AUD 350,000
Reduced stamp duty for vacant land between AUD 350,000 and AUD 450,000
Please note that due to COVID-19, the Australian Government’s benefits for first-time buyers have changed, please consult your solicitor for details.
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Email: grace@geic.com.au
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