Invest in Melbourne real estate: Pros & Cons
The attraction of buying property in the most livable city in the world is plain to see. With the coffee culture, sporting activities, a number of beautiful parks and gardens, and a comparatively low crime rate, Melbourne has so much to offer. This is a good time to buy, with investors catching on, with Melbourne’s property market growing in value at the highest pace of all Australian capital cities.
Throughout the last 40 years:
- The median house price has risen by 7.9 percent per annum.
- The median unit/apartment price rose by 7.73 percent per annum.
Search for value
Property prices may be on the rise, but that does not mean that you cannot snare a deal anymore – you just have to know where to search. v Although 104 Melbourne suburbs were recently reported to have a median sales price of $1 million or above, there are still affordable real estate assets to be found.
In the same study, 74 suburbs were revealed to have an average house price under $600,000.
Can foreigners buy a house in Melbourne?
Yes, but they are legally obliged to get approval from the Foreign Investment Review Board (FIRB) to purchase property in Australia whether they are a non-resident or a temporary visa holder. Obtaining FIRB approval is a straightforward procedure and usually takes a few weeks to process an application.
You can purchase an existing property as a home for yourself as a non-resident, but it must be your primary residence.
They must be new-build properties if you do not plan to live there full time, or if you are purchasing several properties in Australia as an investment. These laws are designed to ensure that the availability of new housing stock is adequate across the nation.
What else do foreigners need to get in order to buy a property in Melbourne?
Approval for Finance
Mortgage brokers are the right people to talk to about what’s the amount that you can comfortably invest. Lots of banks and various loan products are open to them. They’re pros in recognizing the method of providing financial approval paperwork and can make all the difference by avoiding the usage of Lenders Mortgage Insurance. The greatest part of using a mortgage brokerage is that the bank from which you get your loan covers their fees, so you do not cash out for them at all.
Conveyances or Property Attorneys take over after the selling agreement has gotten a signature. Until signing, it is prudent to have the asset contact of the sale read over by them. They concentrate on meeting the conditions set out in the contract, helping to settle the asset (meaning they ensure that the asset is signed to the purchaser) and each party concerned knows that it is yours (local council, water authority, power authorities, etc.).
Legal representatives can also help you cash out for the government taxes associated with the purchase of property investment. To give you an accurate estimate, the state revenue office has issued a land transfer (stamp duty) calculator.