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investing in a property in melbourne

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Red | 13 Aug 2013, 12:51 PM Agree 0
My husband and me are planning to invest in a property in Melbourne. It will be under both our names, me (Australian) and my husband (foreigner). My husband is not an Australian PR. This would be our first property in Australia. We have a house under both our names ouotside of Australia.

a)Please advise us on the Australian Melbourne property laws, property taxes, fees, levies and stamp duties that we have to be pay or be aware of. Do we need to get Foreign Investment Review Board (FIRB) approval before the purchase of a property?
b)What are the different grants that we will be entitled to? What are the conditions?
c)If we plan to use this property for investment (not staying), what are the grants I am entitled to and what are the taxes that we will be liable to pay.
d)What else do I need to take note of for buying a property in Melbourne.
e)Is there any difference if this property is under just my name (Australian), in terms of the taxes/duties and also the grants entitled?
f)Lastly, is there any restriction if we want to sell of the property that we bought. Any minimum occupational period and do we need to pay back any grants etc?

  • Rex Leech | 16 Aug 2013, 10:28 PM Agree 0
    Its good investing in a property in Melbourne because there are some of the areas which are better for the real estate sector.
  • Home Loan Experts | 19 Aug 2013, 12:38 PM Agree 0
    a. You would pay transfer stamp duty on the purchase. Without knowing the purchase price I can't say how much that would be. You can just google VIC stamp duty calc and you will find one that can tell you the answer. I don't think you need FIRB approval as one of you is an Australian citizen. You can refer to the FIRB website http://www.firb.gov.au/content/default.asp
    b. Because you are not living in the property I don't think you will get a grant. If you live in it then you should qualify even though your husband is a temporary resident.
    c. if you chose to live in the property and it is new then you should get $10k as a grant and pay no duty or partial stamp duty. If it is an existing property then you would not get a grant however you may get a partial stamp duty exemption.
    d. Some lenders don't assist borrowers where one of you is a temp resident. You can read here for more info http://www.homeloanexperts.com.au/non-resident-mortgages/temporary-resident-mortgage/
    e. Both name or your name only will not matter.
    f. As long as you live in it for six months starting within the first 12 months then yes you can sell it and keep the grant money.

    Hope that helps!
  • Red | 22 Aug 2013, 10:57 PM Agree 0
    Thank you for the advices. I am thinking of buying an apartment in the Melbourne CBD near RMIT so I can rent it out. A 1 or 2 room apartment is about $400k (of the plan). Do I get saving in stamp duties? Is this better to buying a town house or a landed property in terms of renting it out? I am planning to get a house now in hopes to come back to Melbourne as I am currently working overseas. Thought of investing in a property and let the rent pay for the house by the time we decide to settle back in Melbourne. How much rent can I get? I heard that the body corporate is very high? How much am I looking at? Whats the best way and how much would I need?
  • GT | 30 Aug 2013, 09:39 AM Agree 0
    1. Yes you do get stamp duty savings, around 15-25k. For exact savings you'd have to ask the selling agent.
    2. Apartments generally have higher rental yield and easier to rent out (depends on the suburbs though)
    3. Rent yield is generally 4.5-5.5% gross for apartments
    4. Body corp will depend on the facilities should be around, but should be around $2500-5000 for a 2-bedroom, again depends on the facilities.

    My company sells the majority of apartments currently being developed in Melbourne, so feel free to email me on geraldi.tellys@xynergy.com.au and maybe I can help answer your other questions. No fee involved.
  • TC | 23 Apr 2014, 12:56 AM Agree 0
    I am an Australian and working overseas. I would like buy a flat or town house for investment (i.e. for letting out in the first coupon of years). In future, this property will be used for my kids to live while they come back to Melbourne for studying.

    1) If only my kids (Australian) come back to study and live, and I only live less than six months per year, do I need to pay any Australian resident tax.

    2) It needs to pay body Corp management fee for the flat, how about town house, any fee (e.g. property tax) need to pay per month apart from water, council fee ?

    3) Is it easy to get the mortgage for Australian working overseas ?

    Thank you,
  • vesna | 16 Aug 2014, 05:51 PM Agree 0
    I want to by property up to 350000 - for the investment. I am open to both stand alone houses and units.

    Do you have any suggestion about which is the best suburb for my first property investment and anything to look out for?
  • Planning Permit | 23 Aug 2014, 06:10 PM Agree 0
    WE recommend buy a property for about $300K. Get a Planning Permit to build one or two houses in the rear backyard. Rent all three houses when the buildings are completed and the front home renovated. If you choose the right suburb and successfully obtain the planning permits you will not only be positively geared but start enjoying some capital growth.
    Our clients did just that in the Geelong area.
    [edit:Advert.]
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