457 a good situation to buy we hope

**theoretically** · 04-01-2011, 08:31 AM

Hi, researching these forums and the interweb I have come to think we're in a good situation to buy. Please, a few questions and a little info:

Recently started the 457, within my first month of getting regular pay checks (weekly) - I was working for them part time before the visa kicked in.
1) Will I need to be here longer to satisfy the banks/lenders?

Was flatly turned down by Commonwealth bank as I'm not PR (my wife is also a foreigner to these parts)
2) can you recommend a good lender or two?

We have money saved and are not looking to buy big, we hope to have 50-60% of the cash we need towards the house.
3) surely having 40-50% deposit is a great help(?) Would anyone recommend keeping some back for future, say kids, school or the like or is it wise to invest all we can afford in the house?

I understand the process is: Find a lender, get approved, find a house, get the FIRB...
4) Can someone tell me if there is more to the early stages of the process, any pitfalls/caveats?

I need to move cash from the UK at some point. I'm not desperate to move it yet and the exchange rate is painfully poor right now.
5) Recommend some methods of moving cash. Are any of these cash moving agents scams? (surely but I hope not the ones posting on these forums). Any wild guesses on when the exchange rate will improve and to what levels (I know we can only guess and hope here).

That's all for now, more questions to come.

**furkew** · 04-01-2011, 10:04 PM

We moved over here just over 3 years ago on a 457 & bought within the first 6 weeks.

Then you needed foregin investment review board approval which took a month, that has since been scrapped.

We also had a decent lump sum as deposit, but I had only been working for about 2-3 weeks at the time.

I went through a mortgage advisor and he did the legwork for me, and all I had to do in the end was give the bank (in my case Commonwealth) a letter from my employer stating that it was a permanent long term contract, and that was all.

As for transferring, I have used HiFx on a few occasions and they are excellent. Very easy to make the transactions, and money in your account very quickly.

I would recommend keeping something back for kids/schools/the dreaded phonecall

etc

as to what is going to happen with the exchange, thats anybodies guess. Short term very little I expect. Longer term it will improve, but when & by how much, no idea. I also have some savings still in Europe and waiting for the Euro to improve as well.

**furkew** · 04-01-2011, 10:06 PM

Originally Posted by theoretically

I understand the process is: Find a lender, get approved, find a house, get the FIRB...
.

I missed that bit reading first time round.

As far as I have been led to believe, the FIRB approval wasnt required anymore (or is that just in Vic?)

**spottydog** · 05-01-2011, 04:57 AM

I think FIRB approval has been reintroduced, I understand though it is really a formality if you are going to live in the house.

I would suggest finding a mortgage broker who knows about buying on a temporary visa as some don't know about this.

With regard to keeping some money back you could go for as bigger mortgage as the bank will lend then put any extra monies you have into an offset account so you aren't paying interest on the extra money you have borrowed but have rainy day money immediately available if you need it.

I've used OzForex/Transferz to transfer money with no problem. HiFX are also one of the big companies that have a good reputation

**pablofet1** · 05-01-2011, 05:22 AM

We have been looking into FIRB recently and it is still required in Qld. It is house specific also so it cant be done until you have a lender and a house in mind.

Mel

**theoretically** · 05-01-2011, 05:48 AM

Thanks for the input there guys. More welcome if anyone has anything to chip in.

All useful so far. I'm now keen to find either a broker or back willing to deal with me and get the whole thing rolling.

**theoretically** · 05-01-2011, 05:50 AM

*EDIT BANK not back : )

**furkew** · 05-01-2011, 07:23 AM

Originally Posted by spottydog

I think FIRB approval has been reintroduced, I understand though it is really a formality if you are going to live in the house.

If it has been reintroduced, then as you say it is more just a formality. I've never heard of people being refused on a 457.

We were told at the time it can take up to 30 days. It took in our case exactly 30. Worth thinking about with settlement dates.

Also worth bearing in mind when putting in an offer, is to put in a clause that the offer is made based on FIRB approval as well as finance just in case, but also stress that it is very rarely declined.

**theoretically** · 06-01-2011, 05:50 AM

I'm getting things going via a broker now. Any wisdom re this welcome...

**Quoll** · 06-01-2011, 06:00 AM

Didnt they also reintroduce the rule that if you left the country then you had to sell the house? I know that was talked about at one stage because of all the Asians coming in and snapping up property but not living in it.