Top tips for overseas based buyers buying property in Melbourne
Buyer Solutions provide some top tips for overseas based buyers buying property in Melbourne
International property buyers looking to purchase real estate in Australia can find it very challenging. Different legislation, sales methods, language, not knowing about areas, not knowing what your budget can afford.
Where are the good schools? How will you get to work? Where are the local leisure activities and clubs, pools, gyms, cycling tracks, beach, tennis clubs? What is local public transport like? These are all important factors when buying a property. The questions are endless.
To make it easier for you, here are our tips to help you make a successful purchase.
Are you a permanent resident, New Zealand citizen or Australian citizen?
If not, you need to check if you are eligible to buy in Australia and what types of property you can buy. What are the rules for buying property in Australia? Learn more at the Australian Governments Foreign Investment Review Board http://firb.gov.au/
Have you got your finance organised?
If you are paid in an overseas currency, then it can be tough getting a loan now in Australia. You need to ensure your finances are approved before you make an offer on or buy a property if you are not a cash buyer.
What do you want to buy?
Do you need a house or a unit, a townhouse or an apartment? There are lots of different types of properties in Melbourne. Melbourne real estate can be quite confusing for overseas buyers. Almost too much variety to choose from.
At Buyer Solutions we encourage all our property buyer clients to make a list of “must haves” and “would likes”. If you are married or in a relationship, compare these lists as it is common they are not the same. Our advice is to synchronise the list and develop a property brief that all the property owners will be happy with.
Where do you want to buy?
Do you want to have a quick commute to Melbourne CBD, will you be working at a University? Do you want to be close to a school or schools? What public transport will you require? What are your lifestyle needs? Make a list of the key things that a suburb needs to offer you prior to looking for your property.
What can you afford?
Your budget will influence where, what and even when you can buy. It is critical you define your budget and stick to it. Have a top price you can stretch to and a price you would prefer to pay for your real estate in Melbourne.
Which suburbs suit your needs?
If you are an Expat Aussie coming home, you will have requirements that your property will need to address. If you are moving from interstate or overseas, you may not know where to look to meet these requirements. Getting reliable local advice can be critical. Don’t just rely on family as they may not know or may have their own agendas.
Mums and Dads might just want you nearby, but this may not suit you. Its costly to buy the wrong property in Melbourne, only to re-buy a new piece of real estate. This will cost you a lot of money as you must pay stamp duty twice, buying costs twice, selling costs and you may have lost money by buying the wrong property in the first place.
What types of property are good investments in Melbourne and around Australia?
You need to be selective when buying Melbourne real estate. Not all property is good property. Some properties are going down in value, others up. You need local expertise and advice you can rely on. Or, you need to do a lot of research yourself. Buyer Solutions offers just such a service. Find out more here.
How will I find the perfect property?
You can see advertised properties on websites such as realestate.com.au, domain.com.au, homely.com.au, view.com.au or all of the other property portals. Selling agents work for the property seller but may also be able to tell you about upcoming sales.
But, if you wish to connect with non-advertised properties, you should consider hiring a reputable, fully independent buyers agent. Our award-winning service has set many overseas buyers on the right path.
How will I know if it really is the perfect property?
People are doing business in property in Melbourne. They have their own agendas and motivations. They may believe a property is great when it isn’t.
A selling agent is working for the person selling the property, paid by them and not working for you. Do your own research. Don’t believe everything you are told.
As professional buyers agents, when we do our pre-purchase research we frequently find reasons not to buy a property. Some of these can be very serious such as building defects, neighbouring redevelopment, flooding risks, bush fire zoning etc.
What are the rules if I buy the property?
If the property is a private sale and its not three working days before or after a public auction, then you have three days cooling off. This means if you make a mistake or regret your purchase you can withdraw by notifying the Vendor or his selling agent in writing There is a small financial penalty for cooling off in Victoria. If the property is scheduled for auction and you bid and buy the property, the purchase is unconditional, so no cooling off applies.
The rules of buying property in Australia and Victoria are often different to those that apply where you live, and you need to know the rules prior to buying.
How do I compete with local buyers and buy the property?
It is competitive here. Good properties will attract multiple buyers and it can be competitive. There could be four or five buyers all competing to buy the property. So what strategies will ensure you buy it?
Don’t overpay!
The worst thing you can do is buy the property but overpay. Your lender may value the property at less than you bought it for and then you are in trouble. This happens every day in Melbourne. At Buyer Solutions, we are proud buyers agents that since 2001, have never had a valuation come back less than the value on the contract of sale.
Buying property from overseas is stressful. Buyers advocates can help alleviate the stress.
How can I protect myself from over paying for the property?
Research, market knowledge, access to reliable local data and knowing how to interpret that data are key to pricing the property accurately and not overpaying.
Should I hire a buyers agent/buyers advocate to assist me?
As professional buyers agents, we say you should definitely consider hiring a professional buyers advocate to help you. They should charge you a fee to represent you and there should be no conflict of interest.
The Australian system is not like the USA where the seller pays both the selling agent and the buyers agent. In Australia, the seller should pay their agent and the buyer should pay their buyers agent. If you are not paying your adviser, you need to ask yourself “can I trust them”?
What other professionals will I need and who to trust?
You will need a solicitor or competent conveyancer. That’s a must. Then you may need surveyors, quantity surveyors, building inspectors, pest inspectors (we have termites in Melbourne), Owners Corporation managers, local town planners, architects and the list goes on. Due diligence needs expert input. You must do your research.
What are the costs of buying property in Victoria?
Stamp duty, legal costs, building and pest inspection and a good buyers agent. You can calculate your stamp duty at https://www.sro.vic.gov.au/calculators/land-transfer-calculator
Do your research!
When I sign the contract of sale, what happens next?
If you want to buy the property, then you need to send your Contract of Sale to your mortgage provider and your solicitor urgently. Settlement periods here vary from 30, 60,90, 120 even up to 180 days. So timelines for preparing to settle (own the property in your name) vary hugely.
Who will do my pre-settlement inspection?
A pre-settlement inspection is a must. The property could have been damaged since you bought it. Sellers have been known to remove a dishwasher and replace it with a cheap brand. Some sellers don’t maintain the property during the time between when you buy it and when you own it. If you can’t do the inspection, hire someone reliable to do it for you.
For investors, how will I find a tenant and who to trust to manage my property?
Hire a professional Property Manager to take care of your investment property. They will find a good tenant for you, ensure the property is well maintained and pay all your bills, remitting financial statements for your accountant throughout the financial year.
Seem daunting? Buyer Solutions can help.
At Buyer Solutions we have years of experience buying real estate in Melbourne for property buyers based overseas. Whether you are in London, Shanghai, Singapore, Dubai, Cape Town or Bangkok, we have the experience, technology, local contacts, real estate skills and experience to maximise the experience of buying real estate in Melbourne for you.
Whether you plan to buy an investment property or home, you need to hire the right buyers agent to represent you. Any professional buyers advocate you hire should be a member of REBAA (Real Estate Buyers Association of Australia) as they have high accreditation standards. They should also be fully Licensed Estate Agents and members of their local state Real Estate Institute.
Buyer Solutions are independent, boutique buyer’s agents or buyers advocates and members of the REIV, in Victoria and REBAA nationally. Investors can also be confident to employ Buyer Solutions boutique, professional property management services. Our mature, experienced team will take extra care of you and your asset. When you are based overseas, photographic routine inspections are a huge asset.
Award Winning Service, Buyers Advocate, Buyers Agent, Buying property, Expatriate Aussies, Home buying, Investment property, Overseas Buyers
+61 39816 8555