JonandSophietravel Posted March 6, 2019 Share Posted March 6, 2019 27 minutes ago, Joesline said: @JonandSophietravel yeah, I prefer to give myself some time to find the "suitable" house to purchase. So probably making use of the time spent under 489 visa to find the suitable area, house and also saving up for the initial deposit. Exactly! Might end up in a suburb that you had to accept due to not having much rental choice (especially for us as we have two indoor cats). Can spend a few years looking for the right place Quote Link to comment Share on other sites More sharing options...
Jellica Posted March 6, 2019 Author Share Posted March 6, 2019 We are (crazy!) & considering buying blind from the UK! But we kinda know where we want to be and have family to check out properties for us.Didnt know their were added costs for temp visa holders, and again I'm thankful they dropped the high points to 80 in July, which gave us the added bonus of the 190.... now if only the visa would get granted! meh! Quote Link to comment Share on other sites More sharing options...
Marisawright Posted March 6, 2019 Share Posted March 6, 2019 12 hours ago, OffToOz said: Are you guys planning on buying a house over there? just read you need to pay an extra fee to buy a house on a 489 visa. Its just the thought of paying rent for 3-4 years seems a large waste of money rather than paying off a mortgage. If you're looking at 3-4 years, then you're probably better off renting. When you buy a house, you pay a lot of money in fees and duty upfront, then you pay high interest in the early years of the mortgage, plus council rates and water rates. Then you have costs if you eventually sell. If you add all those up, you'll find they are a lot more than your rent would have been. In years past, the house would have shot up in value during those five years to make up for that - but the Australian house market is flat and they're predicting it will remain so for several years, so that's unlikely. To explain: When you buy a house in Australia, you have to pay stamp duty on top of the purchase price (and in some states, it's a higher rate if you're on a 489). Let's say you bought a house for $500,000. Depending which state you're in, you'll be charged between $10,000 and $30,000 in stamp duty, plus $1,000-$2,000 in solicitor's costs etc. Then there's the mortgage cost. In the early years of a mortgage, about two-thirds of each repayment is actually interest - you're hardly paying off the principal at all, unless you're able to make extra payments. Say you need a modest $300K mortgage - in 4 years, you'll pay about $70,000, of which about $50,000 will be just paying the interest. Then you've got to add council rates (like council tax) and water rates - neither of which you have to pay if you're renting. You're also liable for all the repairs and maintenance on your house, which you wouldn't be if you're renting. Finally there are solicitors costs, advertising and real estate commission when you sell. So, if you buy a house, you'll end up shelling out at least $100,000 in costs over 4 years, over and above the purchase price of the house. How much would rent cost over that period? 1 Quote Link to comment Share on other sites More sharing options...
Marisawright Posted March 6, 2019 Share Posted March 6, 2019 (edited) 3 hours ago, Jellica said: We are (crazy!) & considering buying blind from the UK! But we kinda know where we want to be and have family to check out properties for us. If you've got family to check it out, then maybe it's OK, but I would still be careful. As I pointed out in my other reply, the problem with Australia is the stamp duty. Let's say you buy a house for $500,000 and then when you arrive, you don't like it. Or maybe you end up getting jobs somewhere further away, and it's not practical. You put up with it for six months or a year, and you try to sell it. House prices won't have gone up much in that time (in fact in some places, they're predicting they'll go backwards), so it's still only worth $500,000. That means you've got no chance of recouping the $30,000 in stamp duty and fees that you paid when you bought the place, and what's worse, the real estate agent and conveyancer will take a further chunk of fees when you sell. So I'd say you need to be very confident of your family's ability to choose for you. Edited March 6, 2019 by Marisawright 1 Quote Link to comment Share on other sites More sharing options...
Jonno1981 Posted March 7, 2019 Share Posted March 7, 2019 (edited) We are looking at renting in Adelaide whilst on the 489 visa, partly because I’m not prepared to commit to a purchase before we have that permanent 887 visa in our hands, but also because the ultimate goal is to relocate to SE Queensland after the 887 visa has been granted. Things may change over the next couple of years and who knows we may end up staying in South Australia after we get permanent residency, but either way I feel renting gives us more flexibility to decide when the time comes. Edited March 7, 2019 by Jonno1981 2 Quote Link to comment Share on other sites More sharing options...
OffToOz Posted March 7, 2019 Share Posted March 7, 2019 Thanks for the insight Marisa, I did not realise stamp duty was so high! Also to buy on a 489 you need FIRB approval which costs $5000 and you can only have 1 house that is for your personal use only, you can not rent it out etc. So if you did buy then moved for whatever reason you could not even keep it and rent it if you moved away. I know I am a long way off getting a grant, but I still look at rentals and the market does not seem great, we are looking at the Henley area and its quite expensive. My wife has family in Sydney and they got a 2 bed flat in manly about 2 years ago for around 800K and they think the value as already dropped for under 750k, which is quite a loss in 2 years especially when you factor in duties and legal costs. 1 Quote Link to comment Share on other sites More sharing options...
OffToOz Posted March 7, 2019 Share Posted March 7, 2019 Also forgot to add, first time buyers get a relief in duties but this does not apply to 489 holders Quote Link to comment Share on other sites More sharing options...
Marisawright Posted March 7, 2019 Share Posted March 7, 2019 1 hour ago, OffToOz said: My wife has family in Sydney and they got a 2 bed flat in manly about 2 years ago for around 800K and they think the value as already dropped for under 750k, which is quite a loss in 2 years especially when you factor in duties and legal costs. Ouch. In Sydney, they would've paid $27,000 in stamp duty and levies, plus about $2,000 for solicitor costs. So buying would've cost them $829,000. If they had to sell it now, they'd have to sell for $750,000 and a typical real estate commission would be at least 2.5%, plus advertising plus solicitor costs. So all up, they'd be lucky to get $725,000 in their pocket if they sold now. Just illustrates that owning your own home doesn't always pay off if you're not sure you'll live there for the long term. Quote Link to comment Share on other sites More sharing options...
JonandSophietravel Posted March 7, 2019 Share Posted March 7, 2019 3 hours ago, OffToOz said: I know I am a long way off getting a grant, but I still look at rentals and the market does not seem great, we are looking at the Henley area and its quite expensive. Henley / Henley South is lovely and we were looking at living there originally. However, it is a bit expensive due to its location and it is quite a way away from any big supermarkets so we're thinking just south of the city now. Unley / Goodwood / Parkside / Malvern. I know they're also not the cheapest but we have friends in Goodwood and they seem really convenient for shopping, transport etc. Regarding Henley, this article is from 18 months ago but might be still accurate: https://www.news.com.au/finance/real-estate/adelaide-sa/adelaides-top-10-lifestyle-suburbs-revealed/news-story/3f5a57a3003c0d737a7da07046cb1bbd 2 Quote Link to comment Share on other sites More sharing options...
Jellica Posted March 7, 2019 Author Share Posted March 7, 2019 Thanks for the insight, this is all very helpful, does anyone know what kind of reliefs you can get from stamp duty? Quote Link to comment Share on other sites More sharing options...
Joesline Posted March 7, 2019 Share Posted March 7, 2019 @Marisawright Thank you so much for the information. It will be helpful for me when purchasing a house in the future. Quote Link to comment Share on other sites More sharing options...
Jenki75 Posted March 7, 2019 Share Posted March 7, 2019 12 minutes ago, Jellica said: Thanks for the insight, this is all very helpful, does anyone know what kind of reliefs you can get from stamp duty? https://www.revenuesa.sa.gov.au/grants-and-concessions/first-home-owners I think SA has a first time home owners grant on a new build. I provided a link with some information. 1 Quote Link to comment Share on other sites More sharing options...
Jenki75 Posted March 7, 2019 Share Posted March 7, 2019 (edited) https://www.canstar.com.au/home-loans/first-home-buyer-grants/ This link explains the current first home owner grants by state. It appears the grants can change at any time so staying update on what is available is recommended. This information is dated Jan 2019. Edited March 7, 2019 by Jenki75 1 Quote Link to comment Share on other sites More sharing options...
Jellica Posted March 7, 2019 Author Share Posted March 7, 2019 https://www.canstar.com.au/home-loans/first-home-buyer-grants/ This link explains the current first home owner grants by state. It appears the grants can change at any time so staying update on what is available is recommended. This information is dated Jan 2019.Thanks Jenki, seems to me that we could still qualify for this even though we are home owners in the UK. might be worth taking a look at some new builds in SA! Quote Link to comment Share on other sites More sharing options...
OffToOz Posted March 7, 2019 Share Posted March 7, 2019 I believe you can only get the grants on a 189 or 190, 489 don’t get the grants Quote Link to comment Share on other sites More sharing options...
Jenki75 Posted March 7, 2019 Share Posted March 7, 2019 1 hour ago, OffToOz said: I believe you can only get the grants on a 189 or 190, 489 don’t get the grants Jellica and I are applying for 190 visa's, so that's right they are available to us. Quote Link to comment Share on other sites More sharing options...
Jenki75 Posted March 7, 2019 Share Posted March 7, 2019 1 hour ago, Jellica said: 5 hours ago, Jenki75 said: https://www.canstar.com.au/home-loans/first-home-buyer-grants/ This link explains the current first home owner grants by state. It appears the grants can change at any time so staying update on what is available is recommended. This information is dated Jan 2019. Thanks Jenki, seems to me that we could still qualify for this even though we are home owners in the UK. might be worth taking a look at some new builds in SA! I think we would be considered first time home buyers as it would be our first home in Australia. If you find out otherwise please let me know. Are you thinking about Mount Gambier or Adelaide area? Quote Link to comment Share on other sites More sharing options...
Jellica Posted March 7, 2019 Author Share Posted March 7, 2019 I think we would be considered first time home buyers as it would be our first home in Australia. If you find out otherwise please let me know. Are you thinking about Mount Gambier or Adelaide area?Yeah, I'll def keep my eye on it now, we were reading how Mount Gambier is the Ice Capital of Australia which was a bit off putting so we are looking at a few suburbs in Adelaide as well ... Moana seems to have alot of new builds and development and a disney feel! hahaIf only we could get the visa grant through or even some case officer contact! we could better move forward with plans... meh! Quote Link to comment Share on other sites More sharing options...
Jenki75 Posted March 7, 2019 Share Posted March 7, 2019 1 minute ago, Jellica said: Yeah, I'll def keep my eye on it now, we were reading how Mount Gambier is the Ice Capital of Australia which was a bit off putting so we are looking at a few suburbs in Adelaide as well ... Moana seems to have alot of new builds and development and a disney feel! haha If only we could get the visa grant through or even some case officer contact! we could better move forward with plans... meh! Funny you mentioned the ice capital of Australia because we read about that a few months back. We considered Mt Gambier but have decided that Adelaide would offer all of us more opportunities. We would like to rent for a year and then get a feel for the areas. Ideally we would like a large block possibly near/ in the hills. Yes, a grant would help. Quote Link to comment Share on other sites More sharing options...
JetBlast Posted March 7, 2019 Share Posted March 7, 2019 I thought you had your eye on Henley Beach? Quote Link to comment Share on other sites More sharing options...
JetBlast Posted March 7, 2019 Share Posted March 7, 2019 I am not sure where I want to go yet. I have been looking at North Adelaide but that will be in a flat or some time. I have been looking at areas west of the city. Are there any "rough" areas in Adelaide to avoid please? Quote Link to comment Share on other sites More sharing options...
Lavers Posted March 7, 2019 Share Posted March 7, 2019 11 minutes ago, Jenki75 said: Funny you mentioned the ice capital of Australia because we read about that a few months back. We considered Mt Gambier but have decided that Adelaide would offer all of us more opportunities. We would like to rent for a year and then get a feel for the areas. Ideally we would like a large block possibly near/ in the hills. Yes, a grant would help. Just to butt in....Mount Barker is an area I've seen which seems nice and also new builds going up. Quote Link to comment Share on other sites More sharing options...
Jenki75 Posted March 7, 2019 Share Posted March 7, 2019 1 minute ago, JetBlast said: I am not sure where I want to go yet. I have been looking at North Adelaide but that will be in a flat or some time. I have been looking at areas west of the city. Are there any "rough" areas in Adelaide to avoid please? I hear you have to be careful north of Adelaide such as Elizabeth park. 2 Quote Link to comment Share on other sites More sharing options...
Jenki75 Posted March 7, 2019 Share Posted March 7, 2019 1 minute ago, Lavers said: Just to butt in....Mount Barker is an area I've seen which seems nice and also new builds going up. I agree, and you get a lot for your money out that way. 1 Quote Link to comment Share on other sites More sharing options...
Marisawright Posted March 8, 2019 Share Posted March 8, 2019 6 hours ago, Jenki75 said: I hear you have to be careful north of Adelaide such as Elizabeth park. Homely.com.au is probably the best I've found for suburb reviews. Quote Link to comment Share on other sites More sharing options...
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