Australian Property Purchasing Process

Australia is a country that attracts plenty of interest as a great property investment destination. If you are overseas and looking to purchase property in Australia, here are some steps to consider.

Step 1 - Assemble Your Professional Associates

Having the right team of professionals can be very useful when purchasing an international property. Service providers that may assist you through the process include conveyancers, mortgage providers, accountants, and buyer's agents.

For more information on how each service provider can assist during the process click here.

Step 2 - Seek Pre-Approval for Any Loans

When you are purchasing property, it can be quite beneficial to get pre-approval for any loans that will be involved. This will help to avoid significant delays should you find a property that fits your exact specifications. As the housing market in Australia is strong, many properties have a very short shelf life on the open-market. While other prospective buyers are still getting the necessary loan paperwork together, you could be acting on purchasing a solid investment. Getting a loan before beginning the search for investment property is imperative.

Step 3 - Apply for Pre-Approval From the Australian Government

International investors must apply to the Foreign Investment Review Board (FIRB) if they would like to purchase domestic properties. Having this paperwork in hand will also help you avoid any delays when the property purchasing process is underway.

Step 4 - Begin Searching for Properties

Now that all the necessary paperwork and loan information has been completed, it's time to find the perfect property. Century 21 has one of the most comprehensive listings of properties in Australia and will be perfect place to start your search.

Step 5 - Enter Negotiations Regarding the Purchase Price

Once you have found a property that meets your purchasing criteria, the negotiation process begins. The nature of such negotiations will differ, as different regions experience variances in demand.

Throughout these negotiations, you will have access to all the important contractual information. Your conveyancer or solicitor will give you an overview of the contract, ensuring that everything is perfect before signing. Should any additional provisions or conditions be required, this is when the paperwork will be amended.

The property laws in each Australian state will vary, and this is where a conveyancer's expertise will prove its worth. Once an agreed purchase price has been reached, your solicitor or conveyancer will finalise the information and let you know when to proceed to sign the contract and purchase the property.

An additional point worth noting: before signing the contract, be sure that the clause "subject to FIRB approval" is present. If it isn't, the contract is in breach of Australian law.

Step 6 - Finalise the Formal Loan Approval

Though you have been pre-approved for your property mortgage amount, there is still a finalisation that must occur. It will be essential to forward the sale contract to the mortgage provider.

Step 7 - Complete the Contract Exchange and Pay the Deposit

Once the loan has been formally approved and your conveyancer or solicitor has given you full approval to move forward, you can exchange contracts with the property agent. A deposit is generally required, and there is no set standard to the amount. Once the contracts have been exchanged, the process is nearing the point of completion.

Step 8 - Finalise Necessary Arrangements

The FIRB will need a copy of the contract for formal approval, so once they have been exchanged, forward one to the organisation. Consult with your mortgage provider, solicitor, or conveyancer to get any clarification should it be necessary. Legal advice is always recommended, and you have the right to seek it.

Step 9 - Settlement

This is the final phase of the process and includes the exchange of the property's ownership. Your mortgage provider and conveyancer or solicitor will handle all of the proceedings, so your presence isn't necessary. The real estate agent will have your keys and the title to the property will be held by your lending institution.