Real Estate In Australia - New And Resale Homes

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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

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.

1. 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.
2. 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.
3. 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.
4. 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.
5. 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.
6. 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.
7. 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.
8. 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!!!!

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Tips on Investing in Real Estate in Australia

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

Rules and Regulations - Foreign Investment in Australia

I have made quite a lot of foreign investments in Australia. The thought of making foreign investment in Australia came to my mind last year when I saw news, blogs all talking about Australia playing a leading role in international property investment. One of the reasons for this being, Australia is taking second lead role of being populated with migrants from other countries. When I was about to start my foreign investments in Australia, I had no knowledge in that. But the process I went through got me highly interested in this subject.

First of all, for making foreign investments in Australia, a foreign investment approval is vital. But foreign investment approval depends on what a person wishes to invest in. I went for residential real estate investments and some investments in commercial real estate also. For making these investments, I went through the process of foreign investment approval. In certain cases, even acquisitions of shares or other assets of businesses would require foreign investment approval.

All these depend on the size and type of investment a foreign person is willing to make in Australia. The approval for getting a brand new residential property is much simpler provided all rules and regulations are followed. Thus, the primary rule a foreign national must clearly have in mind while making foreign investments in Australia is that unless they have permanent resident status or meet another exemption, it is vital to get prior FIRB approval before making any investments in Australia.

While undergoing this process, I had a doubt whether it is essential to get FIRB approval for transfer of property even if a property is being left by a citizen in Australia to his close relative who is a foreigner to Australia. When I had this query I immediately mailed officers at FIRB about this and the reply I got was that the property in this case would get transferred easily without even notifying the board. This rule holds even if a foreign national is married to a citizen of Australia and makes a joint investment in Australia. After submitting the papers for approval to the board, I got the approval within 20 days as the board is required to make a decision within 30 days of receiving an application though in certain situation it might take another ten days more. Thus it is sure that one would get the reply from FIRB within forty days of submitting their application to FIRB.

The commercial property foreign investment I made in Australia was less than AUD50 million and so I didn’t need to go through the process of FIRB approval. The FIRB approval for foreign investors on commercial properties is essential only if the amount exceeds the above value or if the amount exceeds the approved amount by FIRB. Once I decided to make foreign investments in Australia, I gathered sound knowledge on rules and regulations related to this from various sources. Then I selected the property for foreign investment in Australia. After this step, I sought legal advice before entering a contract to buy Australian property. This step is important to avoid hurdles and to get us clear about the laws and about the property.

Brought to you by the Australian Immigration Experts at Synch1