Buying a house before we arrive

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Buying a house before we arrive; Pros and cons
Topic Started: 1 Feb 2007, 04:04 AM (236 Views)
Geordie Mandy	1 Feb 2007, 04:04 AM Post #1
Addicted Member Posts: 152 Group: Members Member #809 Joined: 18 July 2006 Migration Status Planning My Location North yorkshire for now then somewhere in Vic	AS my other thread showed a house in Baccus Marshes, it got us thinking. Once we have sold our current house and move to Germany and living in an army house we will be have money avaliable to buy a property in Australia. My OH is seriously considering buying a house in Melbourne and renting it out for the next two years. Could any one give advice on this ,what the financial pitfalls would be. I realise if we did this we would not be intitled to the new buyers grant once we moved over to oz. If anyone could help with info i would be very grateful. Mandy



Thebears	1 Feb 2007, 05:37 AM Post #2
Posts: 2,172 Group: Moderators Member #798 Joined: 8 July 2006 Migration Status Temporary Resident My Mood GO CATS GO My Location Malvern East	Geordie Mandy Feb 1 2007, 04:04 AM AS my other thread showed a house in Baccus Marshes, it got us thinking. Once we have sold our current house and move to Germany and living in an army house we will be have money avaliable to buy a property in Australia. My OH is seriously considering buying a house in Melbourne and renting it out for the next two years. Could any one give advice on this ,what the financial pitfalls would be. I realise if we did this we would not be intitled to the new buyers grant once we moved over to oz. If anyone could help with info i would be very grateful. Mandy Hi Mandy What position will you be to buy in regard PR status? without it you will need FIRB approval unless it is a new build or one with prior approval. This process does put you in a less desirable position than other local buyers. A danger would be buying a property and then finding you dont want to live in that area - although it would be your primary residence be careful this exemption does have rules whereby if you decide to sell it will attract CGT Capital Gains Tax. My recommendation would be to use a buyers agent - costs about 1.5% of purchase price + GST (10%) Think strongly about utilising your location over that 2 years and consider cash investments - some worldwide investments are bringing in 9.75% or even 10.25% Shane



Geordie Mandy	1 Feb 2007, 07:38 AM Post #3
Addicted Member Posts: 152 Group: Members Member #809 Joined: 18 July 2006 Migration Status Planning My Location North yorkshire for now then somewhere in Vic	Thebears Feb 1 2007, 05:37 AM Geordie Mandy Feb 1 2007, 04:04 AM AS my other thread showed a house in Baccus Marshes, it got us thinking. Once we have sold our current house and move to Germany and living in an army house we will be have money avaliable to buy a property in Australia. My OH is seriously considering buying a house in Melbourne and renting it out for the next two years. Could any one give advice on this ,what the financial pitfalls would be. I realise if we did this we would not be intitled to the new buyers grant once we moved over to oz. If anyone could help with info i would be very grateful. Mandy Hi Mandy What position will you be to buy in regard PR status? without it you will need FIRB approval unless it is a new build or one with prior approval. This process does put you in a less desirable position than other local buyers. A danger would be buying a property and then finding you dont want to live in that area - although it would be your primary residence be careful this exemption does have rules whereby if you decide to sell it will attract CGT Capital Gains Tax. My recommendation would be to use a buyers agent - costs about 1.5% of purchase price + GST (10%) Think strongly about utilising your location over that 2 years and consider cash investments - some worldwide investments are bringing in 9.75% or even 10.25% Shane Hi Shane thanks for the info. If hubby gets into the oz army we should know before this time next year. We will be granted PR with hubby being an automatic citizen shortly after starting work for the oz army. i wont get citizen till a few years later. I had thought of the possibility of getting a house with good rental potential which we could use as a base eventually, or even a holiday home . Do you know of any websites that give advice about buying in Australia and also about investments. AS this is all new territory for us. Ultimatly we want to make sure we gain money rather than lose it. Mandy



lhmfitness	1 Feb 2007, 03:59 PM Post #4
Member Posts: 62 Group: Members Member #89 Joined: 25 September 2004	Mandy, Don't forget the Military First Home Owners Grant you also wouldn't be entitled to. $14k if I remember correctly. Colin



Thebears	1 Feb 2007, 04:19 PM Post #5
Posts: 2,172 Group: Moderators Member #798 Joined: 8 July 2006 Migration Status Temporary Resident My Mood GO CATS GO My Location Malvern East	Geordie Mandy Feb 1 2007, 07:38 AM Thebears Feb 1 2007, 05:37 AM Geordie Mandy Feb 1 2007, 04:04 AM AS my other thread showed a house in Baccus Marshes, it got us thinking. Once we have sold our current house and move to Germany and living in an army house we will be have money avaliable to buy a property in Australia. My OH is seriously considering buying a house in Melbourne and renting it out for the next two years. Could any one give advice on this ,what the financial pitfalls would be. I realise if we did this we would not be intitled to the new buyers grant once we moved over to oz. If anyone could help with info i would be very grateful. Mandy Hi Mandy What position will you be to buy in regard PR status? without it you will need FIRB approval unless it is a new build or one with prior approval. This process does put you in a less desirable position than other local buyers. A danger would be buying a property and then finding you dont want to live in that area - although it would be your primary residence be careful this exemption does have rules whereby if you decide to sell it will attract CGT Capital Gains Tax. My recommendation would be to use a buyers agent - costs about 1.5% of purchase price + GST (10%) Think strongly about utilising your location over that 2 years and consider cash investments - some worldwide investments are bringing in 9.75% or even 10.25% Shane Hi Shane thanks for the info. If hubby gets into the oz army we should know before this time next year. We will be granted PR with hubby being an automatic citizen shortly after starting work for the oz army. i wont get citizen till a few years later. I had thought of the possibility of getting a house with good rental potential which we could use as a base eventually, or even a holiday home . Do you know of any websites that give advice about buying in Australia and also about investments. AS this is all new territory for us. Ultimatly we want to make sure we gain money rather than lose it. Mandy My advice would be to sit on the cash and achieve the best medium term rate you can. But I am not a financial advisor - seek one out for some independent advise. You really need to be in Melbourne to see what area you feel comfortable with.



Geordie Mandy	1 Feb 2007, 06:40 PM Post #6
Addicted Member Posts: 152 Group: Members Member #809 Joined: 18 July 2006 Migration Status Planning My Location North yorkshire for now then somewhere in Vic	lhmfitness Feb 1 2007, 03:59 PM Mandy, Don't forget the Military First Home Owners Grant you also wouldn't be entitled to. $14k if I remember correctly. Colin Thanks Colin and Shane. That has certainly put a new slant on it. i think we will have a word with an advisor . Mandy


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