How Do New Expats Buy Property in Australia?

As newly arrived immigrants in Australia, new expats have all sorts of issues to contend with and hurdles to jump…one of the most significant and pressing challenges is sorting out accommodation.  As anyone who has done it already will tell you, rent a place first, don’t try and buy a property in Australia before you’ve even moved to live ‘down under’ because you will be placing too much unnecessary strain on yourself - and what’s more, you’re unlikely to find the perfect house in the perfect location straightaway.

After you have rented somewhere for a while and decided that you do really like living in Australia there will of course come a time when you may want to buy real estate – but with no credit history, how do new expats buy property in Australia?

The fact that you have a long established credit history back in the UK or in the nation you herald from doesn’t count once you have become a permanent resident of Australia.  You have to again begin building up your credit rating from scratch if you want to get a mortgage.  But the good news is, Australian banks and mortgage brokers are used to dealing with newly arrived immigrants!  Some of whom even have large sums of cash from the sale of a former home to put towards their new one, whilst still not having sufficient ticks in sufficient boxes in terms of credit rating!

Look for brokers who advertise on expatriate websites, or speak to the main banks in Australia about their lending terms and conditions for newly arrived expats.  Furthermore, if you rent for six months to a year in Australia to give yourself time to find the right location and the right property, this will be an additional length of time during which you can build up your credit history.

Also, if you have a permanent job in Australia this will go a long way when it comes to positive plus points for your mortgage application.  If the lender can see you are in secure employment and are a reliable person who has already lived in Australia for at least six months to a year, this will bode well for your application.

As well as many mortgage lenders being used to dealing with the needs of new expats who want to buy property in Australia there’s more good news too – to aide and abet first time buyers of homes in Australia the government has a grant in place of AUD 7,000 for all qualifying purchasers of their first property.  If you are a permanent resident you may well qualify and you can learn more from the First Home Owner Grant website.

Finally – a top tip for newly arrived immigrants looking at the Australian housing market at the moment – after a period of about 10 years during which time the nation has seen strong house price appreciation, now is a quiet time in the market with house price gains more modest than of late.  This means it’s a buyer’s market and you can negotiate hard on the price.  Whereas you might be used to a property market where you have to offer at least the asking price, in Australia you can bid quite hard with a vendor over the price.  Use a good estate agent and get them to tell you how hard you can haggle.  Remember that their commission is based on the price you ultimately pay however, and so if you don’t think they are being entirely unbiased in their assessment, just bid lower!

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