sush

Buying a house - adelaide

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    Hi All

     

    We will be looking frantically to look to buy a house once we arrive and have seen 2 houses that we will view once we arrive.

     

    Would the system be somewhat the same to England when buying a house.

     

    And the really big question is what deposit would be expected by the bank (approx) if the house value would be around $300,000.

     

    Also with legal fees, what sort of figure would I also be looking at ?

     

     

    Thanks for your help

     

    Sush.

    :cute:

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    Hi Sush

     

    The process is somewhat different, if you have an offer accepted there is only a 48 hour cooling off period for you or vendor after this you are bound unless there is a condition in the contract that is unfulfilled.

     

    You should make any offer subject to finance and highly recommended a building /pest inspection and dependent on visa maybe FIRB permission (see below).

     

    The general settlement period is around 30 days after the offer is accepted so things do move very fast!!

     

    In relation to deposit, this will depend on Bank/lender and your visa type as well as your individual financial situation.

     

    If you are a temporary resident generally you will need a 20% deposit (although it may be possible with less with one lender in very strong circumstances), also if you are a temporary resident you will need Foreign Investment Review Board (FIRB, as above) permission.

     

    If you are a permanent resident you will need a 5% - 10% deposit again depending on Bank/lender.

     

    Do you have employment secured in Adelaide already?

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    Sorry forgot to add, total costs in addition to deposit will be around 5%.

     

    If you are a permanent resident you may be eligible for the First Home Owners Grant $7,000 established house (additional $8,000 if new until June 30 then $4,000).

     

     

    Just a quick overview, hopefully gives a bit of insight.

     

     

    Regards

     

    Andy

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    Guest Bev64

    hiya, the banks normally require at least a 20% deposit, if you need to borrow more than 80% then you have to have lenders mortgage insurance, which can add a few thousand on to the amount to be borrowed. Most banks here as in the UK require permanent employment etc. The buying process is basically, contract signed once a purchase price agreed then a cooling off period of I believe 72 hours, then you need to pay a deposit. A conveyancer does the legal work and will charge accordingly. Settlement of the property is normally within 30 days but that is negotiable. The biggest cost is the stamp duty on the purchase price of the property which is about 5% so on a $300K you would be paying about $15K then transfer of mortgage and other related costs can add another $3k-$4K.

     

    Sorry just noticed that someone else has mostly covered everything aswell.

     

    One thing I would mention is we have known a few people buy straight away only to realise that the area wasn't what they wanted or the house to far away from work etc and as selling and buying houses over here is very expensive it may be worth thinking of renting for a short time until you find the area and house, could save you thousands in the end.

     

    Good luck hope some of the info has been helpful.

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    Hello Andrew, Thanks for the advise, we do not have employment secured, but have the funds from our house sale in the UK ? do you think this may be a problem ? as the deposit would be well above 10% ?

     

    I work in accounts, I have already been in touch with an agency and have been informed that once I get there work placement should not be a problem.

     

    Thanks

     

     

    Sush.

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    Thanks Bev, very good advise, we will be renting for a month but hope within that time should get to know some areas that do appeal to us

    x

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    Guest Bev64

    Hi Sush, unfortunately without full time work the banks would not give you a mortgage with about 10% deposit they have tightened up as with the rest of the world on borrowing money now, they normally need at least 1 months of payslips etc or may accept a letter of confirmation of employment etc. Do you have a partner what is their occupation? Do you have any idea of the areas that you do fancy moving to?

     

    Regards

    Bev

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