buying property in australia When you think of Australia the notable image that pops into mind is the glorious weather on offer throughout the year. With its hot climate, Australia is the ideal spot for your daily dose of vitamin D. Not only that, but this spacious country is the perfect place to escape from the busy pace of city life. This is evident in the fact that you can easily drive for hours across the vast expanse of open land – where you’ll also have the chance to see a kangaroo.

Instead of falling into a sedentary lifestyle, you’ll find that Australia is known for its pursuit of outdoor activities. Combine this with the growth of Australia’s fresh produce – from capsicums to zucchini – and fresh meat from chicken, beef and lamb, and this lifestyle is a healthy one to explore.
The Cost of Buying Property in Australia

According to Money Buddy, an Australian finance website, property in Australia has proven to be a relatively secure investment over the past 10 years. Figures suggest that returns have been over 8 percent in some of the metropolitan markets.

It is, of course, important to have a budget in mind, which will cover all the necessary costs, plus any extra costs if you are considering a mortgage. Budgeting around 5 to 7 percent of the purchase price should be your ballpark figure. Some of the costs to consider include:

Land Transfer Registration Fee: This can vary between areas.
Legal Fees: This can range between 1 to 2 percent, but can vary between areas.
Survey Fee: While not a compulsory measure, it is wise to carry out, particularly if you’re not in the country to see for yourself.
Strata Inspection: If you are buying an apartment, this will apply as it ensures that there are no structural problems with your new place.
Solicitor’s Fees: These are not based on a fixed price, so they can be negotiable.

One thing to bear in mind is that if you are planning on spending over six months a year living in Australia, then you are automatically liable for income tax.

Before deciding to travel overseas on the off chance that you will find the perfect place to live, you may want to consider searching for houses for sale in Australia first and then employ an independent representative in Australia to visit and review the houses you have picked out. This will of course incur additional costs, but will save you money in the long run.
The Benefits of Buying Property in Australia

Unlike stocks and bonds, the housing market is a fairly low-risk investment to consider.

Positive Asset Base: If you decide to take out another loan or you want to invest in something else, your potential lender is more likely to favor you when they see that you haven’t defaulted and can maintain loan payments.

Safety Net: When it comes to those who are untrained in investments, real estate is a low-risk one that is particularly popular. According to Home Loan Experts, an Australian specialist mortgage broker, properties in Australia have had consistent capital growth over the past century, with the price of property doubling every seven to 10 years.

High Leverage Possibilities: Real-estate can typically be bought at 80 percent LVR (loan-to-valuation ratio), or up to 90 percent LVR combined with mortgage insurance. The LVR is first calculated by determining the amount of the loan and then dividing that by the property’s value. This leverage means the homeowner has a high return at a lower risk because less of their finances are tied up with the property.

First-Time Buyer: As long as you are on a permanent visa or are a resident of Australia you can apply for a First Home Owner Grant (FHOG) of $7,000, which was introduced on July 1, 2000 in Australia. Depending on the state you move to there are a number of first-time buyer benefits that you can take advantage of, such as grants and stamp duty concessions.

Searches and Inspections

You should not switch over contracts to buy land or purchase house until you are sure to have the necessary searches as well as inspections done. Seek advice from your solicitor or settlement agent regarding what sort of searches and inspections you need to carry out while buying property.

Searches and inspections are as follows:

Building inspections – The cost of building inspections varies with the details of different parts of a house in a report on the house. The report is a written document on the flaws in the structure of the house if it has any. It is a house buying policy to view the report meticulously when you step out to buy property.

Pest reports – This report includes in-detail information on the pest-infested parts of a house and their possible treatment. You should purchase property considering this report.

Surveys – Hiring the service of a legal representative to ensure the position of the house as well as its boundaries will cost you some amount before you buy property.

Costs that Buying an Investment Property Involves

Registration Fees – Registration fees depends on the economy of the state where you purchase house or buy land. It is different in different states. These fees are paid for registering the documents on the purchase of the property.

Loan Mortgage Insurance – You will have to pay loan mortgage insurance if you borrow above 80% of the cost that is to be paid to buy investment property.

Mortgage Application Fee – Lending institutions charge you this fee to make up the costs that the processing of a mortgage application involves. Some brokers ask for an extra fee for processing your mortgage.

Conveyancing – Conveyancing cost differs on basis of whether you hire the service of a Conveyancer or a Solicitor. A Solicitor costs more than a Conveyancer.

Other costs involved with buying property are sinking funds, body corporate fees and liability insurance that you may have to bear in order to cover any sort of damage caused to the property.

A seven step strategy for first time property investors

Start saving early while you are still at school, finish your education and get a job

Don’t rely on the first home owners grant and wait until you need a home. Become a first property investor instead. You may still be eligible to claim the first home owner grant later.

Do a rough check your borrowing power online. The banks love employed singles living at their parents home.

Find a good mortgage broker and a good bank. Borrowing power varies between banks.

If you can invest alone, do it. If not enter into a property investment partnership or find a guarantor.

Search for a cash flow positive property that you can afford or a property with high rental returns and turn it cash flow positive as soon as possible. Some properties are cash flow positive from day one and we can show you how to find them. One method is with a specialized search engine, such as Real Estate InvestAr .

Don’t wait to buy your first property once you are in a position to enter the market. And be careful with speculation. With a buy and hold strategy at the low end of the market the best time to buy is now, that is right now in 2012 (and it is almost always now, but you must be cautious at the peak of a bubble). If you have more money than you can get into the riskier higher end of the market. Higher gains and higher potential losses.

Geraldtons incredible location lends itself to a plethora of holiday activities, especially water sports. Surfing, fishing, diving, windsurfing, kitesurfing, and swimming are popular choices for the energetic while those looking to relax will love lazing around on the white sandy beaches, or strolling along its shorelines or wading in the turquoise shallow waters. Surfing is a popular activity in and around Geraldton. Popular surf spots include Flat Rocks, Back Beach, Greenough, Glenfield and Sunset Beach. Geraldton is also an internationally renowned windsurfing location. The most popular spot is Coronation Beach, located just north of the town. “Coro” is a spectacular port tack jumping site, with flat water on the inside and unhindered Indian Ocean rolling swell offshore. In the late afternoon, the wind swings a little more offshore and starboard tack waveriding becomes possible.

Geraldton Attractions available in the area. Geraldton hosts world-class natural attractions, including the nearby Abrolhos Islands, Chapman River, Ellendale Pool, Greenough River, Batavia Coast Marina, Diving, Fishing. Geraldton has a range of activities and attractions for young and old, some of Australia’s finest arts and crafts, tours and cruises, and much more.

Perth is located on the Swan River which provides several fun outdoor activities for residents. The number of people who have flocked to Perth in the last several decades has contributed to the increase of Perth suburbs. Currently, Perth has over 25 different suburbs which all offer a slightly different lifestyle. With growing suburbs, the number of real estate agents has increased in Western Australia. Additionally, more home developers have increased the number of homes being built to meet this growing demand.

One such home developer is Scott Park Homes who is currently building homes in Perth Metrowest. This developer has many homes to choose from for those looking for new homes in Perth. The houses host a wide selection of design style and size so there is likely to be a home for everyone.

Danmar Homes is another developer creating custom real estate for potential residents of Western Australia. This developer designs both one and two storey homes. Packages for both land and home are available. Danmar Homes focuses on providing top quality finishes for their customers.

For those residents of Western Australia who are not in search of building custom real estate, there are plenty of homes for sale. These homes are sold through an agent by a family who is making changes in their lives. A estate agent in Perth can help potential buyers get an idea of the different suburbs Perth has. After the potential buyer narrows down the suburbs in which one may want to live, the estate agent can begin showing homes.

Real estate in Perth is considerably more stable than other parts of the world. In fact, the number of property investments in Perth has risen over the last year mainly in the area of Perth. Perth was rated as one of the top cities to live in which has only helped increase its popularity. This popularity is the cause for more real estate opportunities to develop in this area of Western Australia.

Back in the day, getting a home insurance quote would involve calling your existing insurance company, dealing with your agent, and taking whatever rate was offered to you. Well, it no longer has to be that way. You can get an online home insurance quote with relative ease these days. What’s more, you can get multiple quotes from multiple insurers. This puts you at a significant advantage, allowing you to shop for the best available home insurance quote. And of course this can also be done for renters insurance, car insurance, or for whatever other insurance needs you may have.

This is all available to us by the Internet. It’s important to understand, however, that the elimination of an agent, means a bit more homework on your part. Things may be cheaper and easier by utilizing the power of the Internet, but you’ll be missing guidance from a
qualified agent. So, you’ll need to take a look at what type of coverage you need, what specifically you need to cover, and how much.

These are important areas of guidance that will be lacking, due to the lack of advice. So, it’s important to do some due diligence, rather than just finding the best rate and going with it. It’s also important to note that you should try to work with high quality insurance
companies rated “A” or better. You’ll more than likely be paying into a policy for years, and you’ll want to make sure that company is around when you need them most. All insurance companies are not created equal, some will weasel out of claims at every chance they get, and that’s why quality is so important.

Your landlord may require some form of renters insurance. Your lender will most certainly will require that you carry a certain level of home insurance. For either, it is not only dangerous to go without coverage, but dangerous to go without adequate coverage. Make sure you have sufficient coverage that will protect you and your family. You can get a competitive home insurance quote online for free these days, so take advantage of it.

Many homeowners have seen prices and values dip slightly over the past few years in Sydney, while values have grown in other areas. This provides a significant opportunity for those looking to add real estate to their holdings, whether as an investor or owner. Whether one is looking for moderately priced housing or high-end residences, there are many places available. In fact, several suburbs throughout the Sydney area are showing great growth and prestige after a lengthy hibernation.

Areas such as Pymble, Killara, Gordon, Warrawee and Bremon are showing invigorated prices and activity. The options are prestigious and costly for many, but for those with the funds, the areas are expected to stay quite desirable. In terms of more moderate housing, many agents throughout the Sydney area are looking to Erskineville as the suburb to watch. Prices are still manageable for many families and the area shows excellent opportunity for capital growth and rental yield. The population in the area is growing and all indicators are that the housing throughout the suburb is likely a good investment.

While some are looking to rent or purchase in an area that is already found to be pricy and prestigious, others are seeking areas thought to be more of a hidden gem. Some would say Darlinghurst, for example, is an area to explore since it is often overshadowed by Surry Hills. Redfern is another area that is often being thought of in the same regard. Surry Hills is becoming a very popular area with its urban living and convenient selection of restaurants and bars.

Those with a budget available can find many opportunities throughout the Sydney area. Apartment rentals are readily available in a variety of price ranges, and the home-buying market is a good place for buyers at the moment. Investors can certainly find excellent opportunities, especially in a number of neighborhoods that are on the verge of transforming into high demand areas. While Sydney has had the reputation over the past few years as being more expensive than other nearby areas, the market is achieving some balance and this works in the favor of those seeking a new home.

Families looking for both rental and ownership opportunities throughout Sydney often are seeking a good value, proximity to the city and a smaller, village-type atmosphere. Some specifically want the more prestigious areas of the city, while others are open to developing hot spots or areas that are less prominent with the potential for improvement. Experienced agents can help tailor each family’s needs and budgets to explore the Sydney real estate and apartment market to find the perfect match.

A well-known Real estates organization is the L.J. Hooker Real Estate Agents. With a good reputation built since 1928 by the founder Sir Leslie Joseph Hooker, he has created an agency based on trust and is widely renowned. Nowadays, L.J. Hooker is services all over Australia and continues to provide clients the business in good hands in terms of investment and multiplying the commerce.

If you are interested in residing the state of Western Australia, then Ockerby Real Estate in Perth can be a good choice. With over 40 years of status, they maintain a broad Real Estate service with the support of direct property expertise. With agents that are excellent in their work such as Bev Ockerby shows a high quality professional yet personal service. And Phillip Smith who is an expert to his career yet still demonstrates a friendly and courteous attitude.

While Laing+Simmons in New South Wales, is one of the top real estate or commercial agents in business today. Started in 1967 by Doug Laing and Spencer Simmons, they hold residential agencies as well as commercial offices in the Sydney CBD or the main regional districts. Laing+Simmons guarantees excellent result as they provide unequaled local information and experience.

Known as Alpine Agents, the John Bailey Real Estate focuses their business on the wondrous Victorian Alpine Area. Earning the respect and trust of most clients, they have built a reputation that attracts many costumers. Winter activities like Skiing and Snowboarding, etc. have been an attraction in the Victorian Alps on which people are drawn to reside there. Summer activities are also available including biking, hiking, and bushwalking. With 24 years of business, they have been a good help and guide on living in the Alps.

If your interest is on Furnished Apartments or from another place that wants extended stay accommodation, Corporate Housing is a good choice. They cover all the major capital cities of Australia. By going to this agency you can save more expense by at least forty percent contrast to hotels and apartments. Corporate Housing offers a personal service to clients and responds immediately to their needs and requirements in searching of a location. And don’t forget the 24/7 assistance when you are relocated.

You can find many Real Estates Agencies but keep in mind on what the agents impress you with, not to mention the trust they are trying to build. Find a Australian Real Estate Agents that focuses on your needs and not on selling the house.