Housing In Australia
August 10, 2008 by Mira · Leave a Comment
Are you moving to Australia? Have you thought about or made arrangements for accommodation there? Here are a few tips for you to finalize that.
When you land in Australia you will be astonished to see the wide range of housing there. The designs are based on American or European style. You will find terrace houses and “Queenslanders” which are based on the weather and lifestyle of the regions. Most of the houses will have large backyards, swimming pools, parks and shopping centers which provide a comfortable living for the people.
You will find on analysis that houses in country towns and regional cities are cheaper and more easily available than those in popular capital cities. Mostly people live in the suburbs of the state capital which are closer to the place of their work, and schools.
Renting a House
Usually when you want to rent a house, you will enter into lease or ‘residential tenancy agreement’. This is usually for a period of 6-12 months. It is always advised that you first understand the terms and conditions of this agreement since you will be bound by the terms once signed. You will be paying a rental advance of 4-6 weeks. You are expected to keep the accommodation clean and without any damage to the structure. Sometimes the Government also helps by offering Rent Assistance which helps you to rent a house in the private rental market.
Buying a House
If you are interested in buying a house, realtors will come to your help and if you are buying a home for the first time, you may get Commonwealth First Home Buyers grant. You may also borrow money from a bank or other financial institution. You will require a solicitor for checking the legal documents and other paperwork. It is a dream for Australians to buy a house for their own. Buying a house costs a lot and so they obtain a loan for the purpose. You can even buy land and get a house built according to your plans.
If you are not a permanent resident of Australia then you should get permission from the Foreign Investment Review Board.
Public Housing
If you are a recipient of Centrelink payment, you will be eligible to apply for public housing. Various factors will be taken into consideration on allocating a house depending on where you are looking. These may include things like the size of your household as well as any other necessary requirements.
Government owned housing units are made available to low-income individuals at a nominal rent or no cost. You will find single houses, or flats in a high-rise block. A group of friends can make an application for public housing.
If you require a house urgently then you can apply with proof of the urgency and you will be allotted a house before others in the line. Recurring homelessness is given top priority here. You could be allotted a house anywhere within your chosen areas. If any medical problem is to be treated only at a specific hospital or doctor, you can apply for a house nearby. Waiting times depend on areas. The rent is decided by the authorities. You may have to get permission from the authorities to keep pets.
Australians usually want to own their own land or house. You will find advertisements in local dailies about availability of property for sale and rent. Because of the huge migration, there is a housing shortage in Australia and this makes rents high and availability difficult. Housing is usually more available for people who choose to work and live in towns than cities.
According to a state press release, a “Labor government would spend an extra $400 million to build 11,350 new homes over four years to ease Australia’s public housing shortage, Federal Opposition leader Mark Latham said today“. The Government is making every effort to meet the three main areas of housing in Australia, i.e., land supply and demand, infrastructure, and land taxes. Once these are met, then the demand for houses in Australia should come down. At the moment, if you are flexible about where you live, you should have no problem about getting a good house.
Brought to you by the Australian Immigration Experts at Synch1
Impact On HIA Due To Booming Immigration
August 5, 2008 by Mira · Leave a Comment
I have been living in Australia for the past 7 years and I now find that the boom in immigration has a greater impact on some industries and sectors than on others. One such sector is represented by the Housing Industry Association, or HIA, for short.
1,000,000 New Homes!
Economic forecasters’ projections indicate that demand for new houses is sure to outstrip supply, largely due to increases in the number of immigrants. They estimate that more than one million new homes will be needed in the next five years to meet the demand due to current booming immigration.
Along with mushrooming immigration, additional factors which drive the growth in housing needs are:
- rising population - needs more houses
- rate of construction is below demand
- current interest rates
I read the latest news from the Housing Industry Association is that although there is sudden increase in the immigration numbers, the housing numbers ishows no sign of catching up.
With current social trends, many people - especially immigrants - prefer to live alone or at least with fewer people sharing a house. Nowadays people don’t like to be crowded in the same house and I feel that this decline in the number of people per house could also be a reason driving the need for housing - to meet the demand of a flood of immigrants.
Other factors that contribute towards the shortage in supply of housing are:
- release of land for housing is very limited
- investment funds available for housing is declining
Though demand for housing continues to rise, the supply of new houses is falling behind. There are various factors contributing to this but the primary reason is high interest rates in the property market.
Due to the recent record interest rates, there has been a greater slow down in the building of new houses. I have a house because I built it 7 years ago. Now in this current financial climate, its getting more and more difficult to think of owing even a small house.
My friend recently brought land for about $200K, then found that the estimated cost of building the house had jumped to about 300K. Since he could not afford to pay the higher prices of both land and house, the result is that the land is now vacant, without housing, and he still has high rents for accommodation, as well as paying mortgage costs.
We live in a major city in Australia and find that house prices grow rapidly day by day. Same with house rents which are on the increase. I feel it is vital that major steps must be taken towards meeting the housing demands due to increasing immigration - aimed at cutting these high prices - and would prevent people from facing a homeless future.
This also would increase the need for skilled construction workers and engineers to construct homes for meeting the needs of immigrants.
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Real Estate In Australia - New And Resale Homes
July 31, 2008 by Mira · Leave a Comment
Things To Keep In Mind About New And Resale Homes
The thought of living in your dream possession that has been furnished with new gleaming furnishings is thoroughly an exhilarating feeling. We all are aware of the fact that purchasing a home in a place like Australia can be a fund draining experience. Hence, you must not give up the option of looking at resale homes in your look-out for your dream house.
Dilapidated?
The very thought of resale homes may bring in to your mind a house that is almost in a dilapidated condition with damaged windows, cracked ceiling and floors, rusted wires and broken pipes. No, this might not be the actual case of all resale homes! You can be successful in enjoying some additional benefits while going in for resale homes instead of freshly constructed houses.
The most important factor to be considered is the cost. It is well known that pre-existing houses tend to be comparatively less expensive than newly built houses. The additional difference in the cost of a new home might be attributed to factors like current cost of the land, prices of construction materials, labor costs etc. Hence, if you locate a resale home that suits yours requirements, you may think seriously about buying it.
Another common problem that is encountered with to-be-completed homes is that of noise pollution. Many of these projects are slated to accommodate hundreds of homes and take some years to be fully complete and ready for possession. Hence, if you happen to be one of the first early occupants, you will be forced to face the problem of traffic congestion, construction hazards and noise pollution. These issues are totally absent in the case of resale homes.
However, if you are buying a brand new home, the other major accessories like the furnishings, bath and kitchen fittings, and floor tiling can be decided well in advance to suit your styling requirements and budgetary limitations. In the case of resale homes, you might face stiff opposition from the rest of the neighbors in case of undertaking complete renovation of the interiors of the house.
While considering resale houses, please remember to go through the records of previous payment made by the earlier owner towards all amenities. In case of arrears being built up, you might face acute problems while moving ahead of your furnishing plans in the home.
Can You sell Easily if You Want To?
If you purchase a home which is a part of a major construction project that spans over a couple of years and you decide to sell your property even before the entire project is completed, you must bear in mind that you will be competing with the real estate developer. This might have its impact in the time taken to sell and the price quoted for your brand new home.
Hence, while embarking upon your dream journey of buying yourself a cozy and comfortable home, consider both newly constructed and resale houses. Weigh the pros and cons of both options and make the life-time decision a wise and happy one.
Brought to you by the Australian Immigration Experts at Synch1
Real Estate In Australia - 7 Essential Buying Tips
July 30, 2008 by Mira · Leave a Comment
7 Things To Remember Before Making A Real Estate Purchase
Becoming the proud owner of a dream home can very well be a truly nerve-wracking experience. However, in order to make the process start in an easier fashion, you need to ask yourself certain questions before looking out for a property in Australia.
Please bear in mind that these are not the only factors to be considered before embarking upon your hunt for homes. But, paying a little attention to the following issues will certainly provide you the clarity of the entire situation and equip you with the requisite knowledge to proceed further towards your ultimate goal.
- You need to be clear about your needs. Try to come to a clear decision about the size of the house and the facilities that may come with it. This will prevent future regrets about the space crunch, lack of amenities etc.
- The next very important factor to be considered is the location. Choose the area that suits yours requirements and your financial limitations. Ensure that all pockets in this area are thoroughly searched before moving on to the next preferred location. By doing this, you avoid any confusions that may otherwise arise due to the location of your home and the distance you need to cover for outside facilities like school, office, hospital, shopping malls etc.
- Find out about flexibility levels of the house owner. One easy way of doing this is to check out for how long the house has been empty. A relatively less duration is an indicator that the owner might not show great signs of flexibility.
- I know that you will certainly visit the house to have a good look at it. Try to gauge the level of repairs to be done, the age of the building, the condition of the electrical and plumbing wires etc. This will give you added clarity as far as your budget is concerned.
- Ask the owner to provide complete details of the final price quoted. This should include any associated charges that are being levied. You must also inquire about the tax on property to be paid to ensure that there have been no previous shortfalls in payment.
- Having children in the family will definitely persuade you to prefer locations that are closer to educational institutions. In that case, try to assess the accessibility levels of your home from school and vice-versa. This is undoubtedly one compelling element of house-hunting in case of a family-man.
- Go through the documents of the house with the able guidance of a professional. Try to find out if there are any other related issues like zoning or easement problems. These troubles may arise if your property is the midst of a vast residential neighborhood. Overlooking these factors might take you by surprise later on after possession of the property.
- Be practical while weighing all options of buying the house. Transportation is an important factor to be considered prior to purchasing any property. Try to analyze the time taken for commutation between your prospective home and the most commonly driven places (school or office).
The above discussed issues are just the starting point in your journey towards your dream home. However, giving these factors a deep thought will certainly ease the initial confusions and illusions that are associated with house-hunting. Good Luck!!!!
Brought to you by the Australian Immigration Experts at Synch1
All About First Home Owners Grant In Australia
July 29, 2008 by Mira · Leave a Comment
What do the Australian First Home Owner’s Grant, and Police tracking down dangerous criminals, have in common? Both recognize how precious it is to have your own home…
It is a commonly known fact that the police team in search of criminals always keep a lookout near their home… Sooner or later the cozy comfort of a home and the love of it’s occupant is bound to drag the criminal back into home.
Such is the great attraction and affection a home generates that even the most stone hearted are compelled to return to it for a moment or two of solace. What better way to encourage responsible citizenship than to provide a safe harbour in which he moors his castle of fantasy?
Moreover, right since the beginning human society in general, and family groupings in particular have always felt the necessity of a shelter which could protect them from natural as well as man made storms.
Always striving to provide his family the much needed fortification the caveman zealously guarded the caves and even befriended the dog to perform the duties for him. Times have changed but the urge for shelter remains, and even today one of the major dreams of any human is to have a home of their own and settle down nicely and enjoy the vagaries of life.
It is not only the individual but also society which has understood and accepted the necessity of providing proper housing facilities to each of its members which would finally lead to a happy and content culture. Governments have taken this up on behalf of society and encourage individuals to construct and enjoy their own home.
The Australian Government too realized the need of a helping hand for its populace as far as home building was concerned and came up with unique promotional and incentive scheme which encourage the people to have a house of their own. The First Home Owner’s Grant scheme was thus created to encourage residence possession and also to create a conducive atmosphere for the industry infrastructure and thus the economy.
No Means-Testing
Coming into effect from July 2000, the First Home Owner’s Grant is an open-ended scheme which helps any first time home owner, irrespective of the price of the house being constructed. Thus one may construct a house worth $50,000 or $1,000,000 the amount of grant remains the same. The First Home Owner’s Grant is not means-tested and neither is it restricted by the cost of the proposed property.
How to Apply for a First Home Owner’s Grant?
The grant can be obtained through a number of lending institutions and banks that are a part of the approved agents list. Infact, the grant also provides the added incentive of an additional payment if certain criteria are met by both the spouses. This is also sometimes referred as the first home bonus. The best part of the scheme is that one is not required to apply separately for the bonus but is automatically entitles to it once the application for First Home Owner’s Grant is submitted.
Brought to you by the Australian Immigration Experts at Synch1
Tips on Investing in Real Estate in Australia
July 10, 2008 by Mira · Leave a Comment
For Australians, investment in housing is a national symbol of security. If you have a job for more than 6 months, it is easy to buy a house in Australia. Banks are the buyres’ main source of finance. The Government encourages this by providing long-term financial backing.
There are people in Australia who buy 2 to 3 houses in Australia and let them out for rent which will take care of the mortgage repayment.
Young & Old
Youngsters in Australia show interest in buying houses where they are planning to settle down. They sell the house if they are moving to another place. Older people tend not to retain their house for a long time. Once the mortgage is paid off, they’ll sell the house, buy a smaller one and invest the remaining amount for their old age expenses.
Capital Growth?
For example, if you have invested in the Australian Sunshine Coast about 5-6 years ago, the value of your investment would have gone up many times by now. Why? - The growth in number of immigrants has pushed the prices upwards. As the reports show, “Figures to September show annual growth in medium house prices of more than 13 per cent in Hobart and Brisbane, 19 per cent in Adelaide and over 22 per cent in Canberra. The absolute standout has been Melbourne, surging 33 per cent. For the real estate industry, it’s a beautiful set of numbers.”
Here is one more report on the real estate investment in Australia: Mayor Gary Baildon said he had never seen such a boom in property prices. “It’s unprecedented, I’ve never seen it this lively…and I’ve been here since 1960″.
A market survey says that the momentum for investment in Australia has picked up since the beginning of this year. The Australian Financial Review (one of top financial publications in Australia), 11th January 2006 reports:
“Residential rental property yields in 2006 will improve markedly as contracts are renegotiated to reflect tightening vacancies, property analysts have predicted. Vacancy rates are at the lowest for several years in most capital cities due to pent-up demand and reduced house and apartment completions.”
As in any real estate investments, there are a few precautions to be taken by the investors:
- Check local newspapers
- Talk to a real estate agent in the area
- Contact the local council and Main Roads Department
- Research the Body Corporate (if applicable)
- Seek financial advice
- Re-evaluate regularly
Foreign investors will also need to be familiar and well versed with Australian Federal Government’s foreign investment policy.
If you are not an Australian citizen or permanent resident of Australia and if you want to buy real estate in Australia, you must get the prior approval from the Australian Government.
You should not sign contracts before you receive foreign investment approval, unless the contract is conditional on such approval. You must apply in writing for prior approval to buy real estate.
Brought to you by the Australian Immigration Experts at Synch1
