Auctions are Popular for Buying Property in Australia

Buying property in Australia presents some unique challenges for foreign buyers.  Unless the plan is to move to live in Australia permanently, there are some restrictions on purchases.  Many buyers find themselves only able to purchase off-plan or in brand new developments.  Even still, government review of the sale must take place.

If it’s your plan to migrate to Australia for eventual permanent residence, it can behoove you to wait a bit to buy.  When a more free and clear status is granted, those looking to buy property in Australia are capable to take part in one of the country’s biggest buying trends – auctions.  Auctions are popular for buying property in Australia and in this article we explain the process.

We’ll also take a look at the rules governing property purchase and who is exempt from them.  We’ll explore the housing auction industry and the reasons why exploring all the options can make a great deal of sense for foreign buyers looking to live in Australia.

The Australian government requires that all foreign citizens get their housing purchases approved by the Foreign Investment Review Board.  In most cases, foreign investors and buyers are only able to purchase off-plan or in new developments.  The idea behind this is to not take away opportunity to buy from actual citizens living in Australia.  The government also wants to ensure that all foreign purchases benefit the community in which they take place.

A few classes of foreign-born people are exempt from the regulations to obtain a review prior to purchase.  Those who have approved migrant status, those given permanent resident status and permanent visa holders are not subject to the rules requirements.

Since housing prices tend to be on the high side in Australia, many expats find themselves waiting to buy until they are granted a more permanent residency status.  This does three very important things for expats who move to Australia to live and work in particular.  They are: -

Gives them a chance to get a feel for the country.  Not all expats land on foreign shores and decide they really want to stay forever.  By holding off a bit they can test the waters, so to say, and make a more informed decision about purchasing a property in Australia some way later down the road.

Lets them truly see where they would be most comfortable.  Whilst living in a resort is a dream come true for many, expats who come to Australia to raise families, live and work often prefer living in communities closer to their children’s schools or their own places of employment.  This enables them to really take in the community flavour and become a part of its tapestry.

Opens access to property auctions.  Property auctions are very popular in Australia.  Thousands of auctions take place across the country on a weekly basis.  In Melbourne alone it is not uncommon to have hundreds on any given weekend.  Whilst auctions do not always guarantee low prices, they can result in some cost savings over straight, real-estate agent facilitated purchases.

Buying property in Australia offers a lot of potential for buyers.  If the aim is to move to live in Australia, however, it is often easier and wiser to wait a bit to buy.  Doing so enables more hands-on research and opens the door for potential cost savings.