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El the Plasterer

Buying house as international student

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Hi guys and girls

im coming over in June to do a 2yr course so will be on a student visa (I’m from uk) but then plan to stay after with various other visa options 

so my question is can I buy a house as a student  say house worth $600K-$700k with deposit of $200 Gold Coast area 

obviously having student visa would only be able to work part time 20hours a week 

wife could work 20hours a week also 

any advice would be massively appreciated as don’t really want to waste loads of money renting for years. 
thank you 

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Hi @El the Plasterer the only person who could tell you definitely is a mortgage broker or contact @Andrew from Vista Financial 
‘Personally I wouldn’t think it possible. Even couples working full time may struggle.

This would be a great Tool to use for budgeting it also helps you work out on rentals etc. https://www.realestate.com.au/home-loans/mortgage-calculator 
I don’t know what the rules are these days on purchasing property on a temp visa but if it’s possible would you not consider looking at something cheaper, maybe even a unit/apartment. I know it wouldn’t be your dream home but it would get you on the property ladder and once you sort your visas and get full time employment you will be in a better position 


If you are depressed you are living in the past. If you are anxious you are living in the future. If you are at peace you are living in the present.

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Thats a good idea I suppose it would still beat renting. I suppose il have to wait and see really untill I’m there speaking with mortgage lenders etc..

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8 hours ago, El the Plasterer said:

so my question is can I buy a house as a student  say house worth $600K-$700k with deposit of $200 Gold Coast area 

obviously having student visa would only be able to work part time 20hours a week 

wife could work 20hours a week also 

You've got a good deposit there but the important thing for a mortgage is whether you'd have enough income to qualify.  This calculator will tell you:

https://www.realestate.com.au/home-loans/borrowing-power-calculator/

However, be aware that most banks won't lend to international student visa holders, because obviously, most of them are going to leave the country long before the mortgage is paid off.   And I'm sure you'll appreciate that they can't take your word for it that you're staying for the long term.   

Personally, I wouldn't worry about it yet, because I doubt you'll be ready to buy for a year or so. I say that because you're going to be in an AirBnB/holiday let for a month, then you'll have to sign up for a rental for at least six months (some landlords insist on 12 months).  There's 7 months gone already.  Also, it's unlikely you'll both get 20 hours' work straight away.   Part-time work is hard to find and depending what your wife does, she may find it hard to get a job because employers aren't keen to employ people on short-term visas.  So it could be several months before you're both earning. 

I would just park the idea for now and plan on the basis that you'll be renting - then worry about it down the track.

Edited by Marisawright

Scot by birth, emigrated 1985 | Aussie husband applied UK spouse visa Jan 2015, granted March 2015, moved to UK May 2015 | Returned to Oz June 2016

"The stranger who comes home does not make himself at home but makes home itself strange." -- Rainer Maria Rilke

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The other snag is that because you're an international student, you'll be classed as a foreign investor. That mean you'll need to apply for special permission to buy from the FIRB.  The fee is a few thousand dollars.   Then you'll be charged about four times the stamp duty that Australians would pay.  

 On a $600,000 house in Queensland, an Australian would pay $12,850 in stamp duty.   You will have to pay $54,850.

If you think about that, you'd be better off using that extra $42,000 to pay rent instead, and wait until you're no longer a student.

If you keep your house in the UK and rent it out, that will help pay for your rent (and give you a safety net if the rules change and you're unable to get on the Work Ready program)

Edited by Marisawright

Scot by birth, emigrated 1985 | Aussie husband applied UK spouse visa Jan 2015, granted March 2015, moved to UK May 2015 | Returned to Oz June 2016

"The stranger who comes home does not make himself at home but makes home itself strange." -- Rainer Maria Rilke

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9 hours ago, El the Plasterer said:

Hi guys and girls

im coming over in June to do a 2yr course so will be on a student visa (I’m from uk) but then plan to stay after with various other visa options 

so my question is can I buy a house as a student  say house worth $600K-$700k with deposit of $200 Gold Coast area 

obviously having student visa would only be able to work part time 20hours a week 

wife could work 20hours a week also 

any advice would be massively appreciated as don’t really want to waste loads of money renting for years. 
thank you 

I’m not sure about whether you actually can on a student visa but even if you are allowed I’d say it’s unlikely you’ll meet the affordability criteria.  Even if you can both get 20 hours a week work, that’s only the equivalent of one person working. With dependants too you would both have to be earning exceptional salaries to document affordability. 

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The FIRB rules are here.  
https://firb.gov.au/guidance-resources/guidance-notes/gn2

You would be a temporary resident.  So IF you could get a mortgage, you could buy an existing dwelling, but you could not rent it out and must sell if you moved out.  You could buy a lot of land and build a new house which would have no such conditions attached.  This would be less stamp duty (as only paid on the land purchase) but would probably only be finished when you complete the course and may have to go home.

 

Can I ask why you have chosen this particular visa route?  Do you not qualify for skilled migration?

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So many wineries ......so little time :yes:

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Do you have children?  If you have, you've probably already calculated the cost of the additional school fees.  


I just want PIO to be a happy place where people are nice to each other and unicorns poop rainbows

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You've probably got the wrong idea about renting.

 

Rent or interest you still pay.Renting for two years @say $400 per week will cost you $41,600.That's it.

 

Buying will cost you say $500K x4%x2 is $40K.Plus stamp duty,insurance ,rates,maintenance,and a lot of other costs.

 

You can lose a fortune buying a house for the short term,depending on what markets do.

 

A $600K house taking a 4% drop over 2 years can cost you a couple of hundred thousand after taking in costs and interest.

 

Rent is never wasted money in the short term.

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On 28/01/2020 at 13:57, Whey aye said:

 

Rent is never wasted money in the short term.

Rent is always wasted money, whether it's as big a waste as a short term purchase depends on the timeframe and the performance of the housing market (and in particular the specific house you buy)

It's feasible even with the crazy non-resident stamp duty that if you buy in an area that goes through a demand pinch that you could easily make back all your outlay on a $700k house if the market rises 15% whilst you own it (and can sell it again quickly) - ultimately to answer this question you need to have a crystal ball

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