Buying a Home in Australia
David Hampshire & Joanna Styles
Buying a Home in Australia is essential reading for foreigners planning to buy property in Australia. It contains a profusion of information and insider tips to guide you through the Australian property maze, and save you time, trouble and money. Irrespective of whether you’re buying a family, holiday or retirement home, or a property purely as an investment, this guide will help ensure a smooth, hassle-free transaction. Whether you want an apartment in downtown Sydney, a beachside townhouse on the Gold Coast or a rural home in Victoria, Buying a Home in Australia will help make your dreams come true. Don’t leave home without it!
Download the first 25 pages FREE now (including the Table of Contents), and see for yourself the wealth of priceless information this book contains (including Australian permits & visas, estate agents in Australia, Australian property tax and letting property in Australia)! It's packed with comprehensive, up-to-date, accurate information, facts and figures, and 'insider’ tips, all written and presented in the ‘easy to read and understand’ style for which Survival Books are famous. Our books will save you weeks or months of research, answer hundreds of questions – including many you hadn’t even thought of – and help you avoid problems and save money!
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Other guides for Australia
Extracts from the book…
Money Matters
One of the most important aspects of buying a home in Australia and living there (even for short periods) is money management, which includes transferring and changing money, opening a bank account and obtaining a mortgage. Whether or not you plan to live Down Under, you may also incur local taxes, which are covered in Chapter 7.
If you’re planning to invest in property or a business in Australia that’s financed with funds in a foreign currency (e.g. GB£ or US$), it’s important to consider both the present and possible future exchange rates (even a small change in the exchange rate can increase the price of a home dramatically). If you need to borrow money to buy property or for a business venture, you should carefully consider where and in what currency to raise finance. Bear in mind that if your income is paid in a foreign currency it’s exposed to risks beyond your control when you live in Australia, particularly regarding inflation and exchange rate fluctuations. On the other hand, if you live and work in Australia and are paid in local currency, this may affect your financial commitments abroad.
If you own a holiday home or investment property in Australia, you can employ a local accountant or tax adviser to look after your financial affairs there, e.g. receive your bank statements, ensure that your bank is paying your standing orders (e.g. for utilities and property taxes) and that you have sufficient funds to pay them, and declare and pay your local taxes. If you let a home in Australia through a local company, it may perform the above tasks as part of its service.
You should ensure that your income is (and will remain) sufficient to live on, bearing in mind possible devaluations (if your income isn’t paid in local currency), rises in the cost of living, unforeseen expenses such as medical bills and anything else that may reduce your income (such as stock market crashes and recessions!).
It’s wise to have at least one credit card when visiting or living in Australia (Visa and MasterCard are the most widely accepted). Even if you don’t like credit cards and shun any form of credit, they do have their uses, for example no-deposit car hire; no pre-paying hotel bills (plus guaranteed bookings); obtaining cash 24 hours a day; simple telephone, mail-order and internet payments; greater security than cash; and, above all, convenience. Note, however, that not all Australian businesses accept credit cards.
Letting
If you’re letting a second home, the most important decision is whether to let it yourself or use a letting agent (or agents). If you don’t have much spare time or don’t live in Australia, you’re better off using an agent, who will take care of everything and save you the time and expense of advertising and finding clients.
Take care when selecting a letting agent, as they sometimes go bust owing customers thousands of dollars. Make sure that your income is kept in an escrow account and paid regularly, or even better, choose an agent with a bonding scheme who pays you the rent before the arrival of guests (some do). It’s absolutely essential to employ an efficient, reliable and honest company, preferably long-established.
Ask a management company to substantiate rental income claims and occupancy rates by showing you examples of actual income received from other properties. Ask for the names of satisfied customers and check with them. It’s also worthwhile inspecting properties managed by an agency to see whether they’re well looked after.
Other things to ask letting agents include the following:
- who they let to;
- where they advertise;
- what information they send to potential and actual clients;
- whether they have contracts with holiday and travel companies;
- whether you’re expected to contribute towards marketing costs;
- whether you’re free to let the property yourself and/or use it when you wish.
The larger companies market homes via newspapers, magazines, overseas agents, colour brochures and the internet, and have representatives in many countries.
Bear in mind that if you use a letting agent to let a property, your costs will be even higher, although this may be compensated by increased rental income.
You should also check whether you’ll receive a detailed analysis of income and expenditure and what notice you’re required to give if you decide to terminate the agreement. Agency contracts usually run for a year.
Some agencies act as management companies, whose services should include the following:
- arranging routine and emergency repairs;
- reading meters (if electricity is charged extra);
- routine maintenance of house and garden, including lawn cutting and pool cleaning;
- arranging cleaning and linen changes between lets;
- advising guests on the use of equipment;
- providing guest information and advice (possibly 24 hours a day in the case of emergencies).
Agents may also provide someone to meet and greet clients, hand over the keys and check that everything is in order. A letting agent’s representative should also make periodic checks when a property is empty to ensure that it’s secure and that everything is in order. The services provided may depend on whether a property is basic one- or two-bedroom apartment or a luxury four-bedroom detached house.
You may wish (or need) to make periodic checks on an agency to ensure that all bookings are being declared and that your property is being well managed and maintained.
Some owners prefer to let a property to family, friends and colleagues, which allows them more control (and with luck the property will be better looked after). In fact, the best way to get a high volume of lets is usually to do it yourself, although many owners use a letting agency in addition to doing their own marketing.
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Free PDF Sample
PRICE: £13.95
PUBLICATION: April 2008
EDITION: 2nd
PAGES: 280
BINDING: paperback
SIZE: 210mm x 148mm
COLOUR PHOTOS: over 100
