First, select the overseas property and unit type. Then, AUD 2,000 - 5,000 is payable to the attorney of the overseas developer's trust account.
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.
Normally, the developer would have applied for the Foreign Investment Review Board (FIRB). If not, your attorney will apply for you.
After signing the Sales & Purchase Agreement, 10% of the purchase price is payable by the buyer to the attorney of the overseas developer's trust account.
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.
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.
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.
A: Foreign investors can apply for up to 80% mortgage in AUD and 70% in HKD. The interest rate can be as low as 4.25% per annum in AUD and 2.2% in HKD and loan period can be 25 years.
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.
Q: Are Australia property freehold or leasehold?
A: Most of the properties in Australia are freehold. Only a few are leasehold.
Q: How much is the fee for a solicitor?
A: It ranges from AUD $1,000 to $4,000.
●Stamp Duty - It varies from different states in Australia. The estimated amount is around 3 - 5% of the property price. In Melbourne, there is an additional 7% stamp duty payable by the buyer.
●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.
●Water Bill - Payable by every quarter. Starting from AUD $600.
●Municipal fees - Payable by every quarter. Ranging from AUD $800 - $1,200.
●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.
Check out Australia Property for Sale HERE