Buying property in Oz whilst on 457 visa

**HPRYCE** · 09-05-2007, 10:24 AM

Hi there everybody. Have just registered and this is my first post. Hope someone is able to answer my query.

My family and I are likely to be moving to Melbourne around Sept/Oct on a sponsorship 457visa. Can anyone tell me if there are restrictions on buying a house on Oz whilst on such a visa? Any advice/comments greatly appreciated.

Very excited by the prospect but also slightly daunted.

Hugo

JoanneHattersley · 09-05-2007, 12:43 PM

Originally Posted by HPRYCE

Hi there everybody. Have just registered and this is my first post. Hope someone is able to answer my query.

My family and I are likely to be moving to Melbourne around Sept/Oct on a sponsorship 457visa. Can anyone tell me if there are restrictions on buying a house on Oz whilst on such a visa? Any advice/comments greatly appreciated.

Very excited by the prospect but also slightly daunted.

Hugo

We bought property while on a 457 VISA. All you have to do is get permission from the FIRB in order to be able to purchase. Its free to get permission and is processed within a week! Well, mine was anyway! My real estate agent was great! She faxed everything off for us and helped us through everything, recommending solicitors and everything!
Where you planning to live?

**simon and jenean** · 09-05-2007, 01:27 PM

Hi
Just to let you know that when we were looking into it you aren't entitled to first homeowners grant if on 457, but can claim this if pr granted within 12 months of purchase (this is from memory so I think it is correct). www.dtf.wa.gov.au/cms/osr_content.asp?id=379 See this for more info. There are restrictions on 457 and buying a house such as only being able to sell to people with pr/australians etc.

Hope this helps. Good luck.
Jenean

**HPRYCE** · 09-05-2007, 01:43 PM

Thanks that is really useful to know. Our sponsor was looking into it but hadn't come back yet so at least now we know what is possible. Company is sorting us out accomodation for the first 6 weeks or so then the plan is to rent for 6-12 months whilst we suss out where we want to live. We have been told the Brighton area of Melbourne but I understand that this is one of the most expensive areas. At the end of the day it will be a compromise between commute, nursery schools etc.

Best wishes

Hugo & family

**BullcreekBob** · 11-05-2007, 05:25 AM

Originally Posted by HPRYCE

..on a sponsorship 457visa. Can anyone tell me if there are restrictions on buying a house on Oz whilst on such a visa? Any advice/comments greatly appreciated.

G'day

To buy, you need approval from the Foreign Investment Review Board (FIRB), their web site says approval can take 4 weeks but usualy it is only a few days. FIRB approval is very rarely refused and it's usually given subject to a few conditions,namely; you have more than 12 months remaining on your visa; the property will be your principal place of residence (ie not a seaside retreat or investment); you agree to sell it quickly (to a permanent resident) after your visa expires and you leave. Of course if you later go from a 457 visa to a 136, then you can do what you want the property.

HTH

JoanneHattersley · 11-05-2007, 06:19 AM

Originally Posted by simon and jenean

Hi
Just to let you know that when we were looking into it you aren't entitled to first homeowners grant if on 457, but can claim this if pr granted within 12 months of purchase (this is from memory so I think it is correct). www.dtf.wa.gov.au/cms/osr_content.asp?id=379 See this for more info. There are restrictions on 457 and buying a house such as only being able to sell to people with pr/australians etc.

Hope this helps. Good luck.
Jenean

U R only entitled to first time homeowners grant if u r permenent resident.

**HPRYCE** · 11-05-2007, 08:50 AM

Thanks Bob that really does help. You may also be able to offer some advice on the likelyhood of our being able to secure mortgage finance if we were able to put down a 50% + deposit. If so any thoughts on what income multiple we are likely to be able to get and how long would we have had to be resident before a lender would consider us. We are likely to out in Melbourne Sept/Oct and be there for minimum 4 yrs. Thanks for your advice

Hugo Pryce

**yvonne & paul** · 11-05-2007, 09:21 PM

hi

we are also interest re mortgage, we are going in July and would have say 50% to put down but still have £50,000.00 in bank for school,college,meds emergencies and rent/mortgage payments. We are going on OH student visa and I can work 20 hours so can OH plus more in hols. But would we need a job first or is the money in bank and 50% down enough to get a mortgage before being employed??? We may need to buy quick as we have dogs and hear it is difficult to rent with dogs. We are going to Nambour, sunshine coast.
Thanks
Yvonne

**BullcreekBob** · 12-05-2007, 03:28 AM

Originally Posted by HPRYCE

Thanks Bob that really does help. You may also be able to offer some advice on the likelyhood of our being able to secure mortgage finance if we were able to put down a 50% + deposit. If so any thoughts on what income multiple we are likely to be able to get and how long would we have had to be resident before a lender would consider us. We are likely to out in Melbourne Sept/Oct and be there for minimum 4 yrs. Thanks for your advice

Hugo Pryce

G'day

Over here, none of the lenders or banks work on income multiples like they do in the UK. What they do is look at your income, allow for tax, allow for living expenses, allow for any other debts or credit cards, then according to what is left over, they will see how much you would have available to repay a loan (allowing for a steep rise in interest rates) and they will make you an offer on that basis. Each bank has slightly different *estimates* for living expenses and theoretical interest rate rises, consequently each lender will have a different maximum amount they would be prepared to lend you.

Having a 50% deposit is a very good thing. Many banks will be happy to deal with you as soon as you get your first pay packet. Send me a PM with what you expect to earn and I'll let you know how much you can easily borrow and what the likely repayments will be. In fact if you really wanted I can give you a letter from a bank or other lender giving you "pre-approval" a loan for you which would allow you to start looking at what you could readily afford and be offered, before you get here.

**BullcreekBob** · 12-05-2007, 03:32 AM

Originally Posted by yvonne & paul

hi

we are also interest re mortgage, we are going in July and would have say 50% to put down but still have £50,000.00 in bank for school,college,meds emergencies and rent/mortgage payments. We are going on OH student visa and I can work 20 hours so can OH plus more in hols. But would we need a job first or is the money in bank and 50% down enough to get a mortgage before being employed??? We may need to buy quick as we have dogs and hear it is difficult to rent with dogs. We are going to Nambour, sunshine coast.
Thanks
Yvonne

G'day Yvonne,

See my reply to Hugo, it answers pretty much all of your questions. However, it could be slightly more difficult for you because your job(s) will be part time rather than full time. However, as I offered to Hugo, if you send me a PM I can give you more specific advice, rather than the general opinions I can give in a public forum.