Purchasing Australia Property | Convoy International Property Consulting Company Limited

Procedures of Purchasing Australia Property
 

1. Reserve Unit

First, select the property and unit type. Then, AUD 2,000 - 5,000 is payable to the attorney of the developer's trust account.
 

2. Sign Sales & Purchase Agreement

After the cooling-off period, the buyer can sign the Sales & Purchase Agreement. A licensed Australian attorney will accompany the buyer and elaborate the details on the contract. It is Australia's regulation to involve an attorney throughout the process to ensure the owner's rights.
 

3. Apply for Foreign Investment Review Board

Normally, the developer would have applied for the Foreign Investment Review Board. If not, your attorney will apply for you.
           

4. Pay First Instalment

After signing the Sales & Purchase Agreement, 10% of the purchase price is payable by the buyer to the attorney of the developer's trust account.
 

5. Apply for Mortgage

Three months before handover, the attorney will notify the buyer to apply for mortgage. The attorney will work with the buyer's mortgage manager to apply for mortgage. Most of the foreign investors can apply for 70% - 80% mortgage. At the same time, the buyer is required to pay for the remaining 10-20% first instalment.
 

6. Handover

When the project has been completed, the attorney will notify the buyer to check the unit. (It can either be carried out by the attorney or local surveyors). After checking the unit, the attorney will confirm the handover date. On the day of handover, the bank will release the mortgage amount to the developer. The buyer is required to transfer the 10-20% first instalment before that. When the buyer gets the key, the transaction is officialy completed.
 

7. Rent Out the Property

When the buyer has got the key, you can assign a property management company in Australia to manage your property. They can provide services such as looking for tenants, checking and maintaining the property, paying taxes for the owner etc. The expenses will be charged directly from the rental return.


Q: What is the percentage of mortgage I can apply for purchasing Australia property as a foreign investor?

A: Foreign investors can apply for up to 80% mortgage. The interest rate can be as low as 4.25% per annum and loan period can be 25 years.

Q: Are there any expenses when I buy / sell Australia property?

A: If you have assigned a property management company, they will charge 6% of the rent as rent management fee. The owner is also required to pay for the property's management fee and maintenance fee.


Taxes

One-off Taxes:

●Stamp Duty - It varies from different states in Australia. The estimated amount is around 4 - 5% of the property price.

●Application fee for FIRB - Property price which is equals to or less then AUD 1 million, the application fee is AUD 5,000. Property price between 1 million to 2 million, the application fee is AUD $10,000. Property price which is  more than 2 million, the application fee is more than AUD $10,000. 

Other Taxes:

●Water Bill -  Payable by every quarter

●Municipal fees - Payable by every quarter

Expenses when you sell Australia property

●Capital Gain Tax - Selling property owned less than a year will be charged for 50% of the profit amount. Selling property owned more than a year will be charged for 25% of the profit amount.

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