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Under the Covid-19, the local real estate market is booming thanks to Australia’s low interest rate and the government’s various measures to stimulate the property market. Among them, first-hand property prices have repeatedly hit new highs and have great potential for appreciation, making them a popular choice for Hong Kong people to invest in overseas properties. If you are new to overseas property buyers, or have never bought a property in Australia, you may wish to take a look at this comprehensive guide on Australian property purchase procedures, mortgages, down payment and stamp duty.
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The process of buying a property in Australia can be roughly divided into the following seven steps:
- Choose your favorite area and type of property
- Know the right mortgage plan
- Pay the deposit (Holding Fee) to keep the unit
- Sign the sale and purchase agreement
- Pay the first installment
- Pay stamp duty on property purchases in Australia
Building inspection and repossession
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Choose your favorite area and type of property
When choosing the property of your choice, it is recommended to consider carefully from multiple angles. The following are a few basic considerations.
- What identity should you use to buy a property: Are you a permanent resident of Australia (PR), a citizen (Citizen), or an overseas buyer (Overseas Buyer)?
- Type of property: Do you want to buy a flat, a garden villa or a detached house?
- Regional support: Is there good infrastructure, transportation, shopping facilities, school network and public security in the area?
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Know the right mortgage plan
You can apply for a mortgage from a bank in Australia or Hong Kong. If you need to apply for a property mortgage, you must provide a valid income certificate to the bank, including submission of employer letter or employment contract, bank statement and other documents. Changmei Australia Property Investment Co., Ltd. has many years of experience in assisting clients to apply for mortgages, and can assist in processing applications from the Shanghai Council throughout the process and provide professional advice during the application period.
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Pay the deposit (Holding Fee) to keep the unit
After confirming your favorite property, you can pay a deposit to the property agent to keep the unit. The properties sold by Changmei Australia Property Investment Co., Ltd. are listed simultaneously with Brisbane, Australia. Therefore, after you pay the deposit, we can quickly reserve your favorite unit.
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Sign the sale and purchase agreement
After the desired property has confirmed the reservation, it will enter the formal contracting process. When signing the sale and purchase agreement, both the buyer and the seller need to hire their respective lawyers. The lawyers will send the contract documents from Australia to the Hong Kong office of Changmei Australia Property. We will help you understand the contract terms and other details (such as delivery of the first installment, repossession of the property) And building inspection procedures), after completing the signing of various transaction documents, then send it back to the developer for you.
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Pay the first installment
Four to five weeks after signing the sale and purchase agreement, you will need to wire the first installment to the Solicitor Trust Account of the developer’s lawyer:
– If you are an overseas person, the first installment is 20% of the property price;
– If you are an Australian permanent resident or citizen, the first installment is 10% of the property price
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Australian property purchase stamp duty
Given that various state governments have implemented different plans to stimulate the property market, the stamp duty on property purchases in Australia varies from state to state. Among the most popular cities for Hong Kong residents to buy property, Brisbane, the capital of Queensland, has the lowest stamp duty. If you are an Australian permanent resident or citizen, the stamp duty is only about 3.3% of the property price; if you are an overseas person, you need to pay an additional tax of about 7% of the property price.
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Building inspection and repossession
After confirming the successful payment of the first instalment, the final step of the purchase process in Australia: building inspection and repossession. Changmei Property Australia will entrust a third-party building inspection company to complete the building inspection procedures with a rigorous and professional attitude. Buyers will receive videos, photos and report documents of the on-site building inspection before receiving the building. After the developer receives the building inspection report, it will also perform omission work on the content mentioned in the report. The buyer must pay the mantissa and stamp duty within the deadline given by the developer.
The Australian real estate market is booming. It is not difficult for Hong Kong people to buy Australian properties remotely. As long as there is a reliable intermediary who is familiar with local laws, they can select and purchase Australian properties simply and quickly. Changmei Australia Property Headquarters has more than 22 years of experience. It specializes in collecting high-quality properties in Brisbane, the capital of Queensland, for guests. The types of properties are diversified. It provides you with one-stop property investment, rental management, mortgage services, immigration and education, property tax declaration, etc. professional service. If you want to know more about the process of buying a property in Australia, please feel free to contact our property investment experts to realize your dream of buying a property in Australia.