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Buying property in Oz whilst on 457 visa


Guest HPRYCE

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Guest 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

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Guest JoanneHattersley
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?

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Guest 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). http://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

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Guest HPRYCE

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

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Guest BullcreekBob
..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

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Guest JoanneHattersley
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). http://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.

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Guest 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

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Guest 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

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Guest BullcreekBob
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.

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Guest BullcreekBob
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.

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  • 1 year later...
Guest Pete the Adviser

Hi Hugo,

 

you may want to consider the pros and cons of buying vs renting from an opportunity cost perspective.

 

Many people don't and they end up creating wealth the hard way.

 

Find yourself a good financial adviser who will weigh up the options for you.

 

regards

 

Pete

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  • 1 year later...

If you are on a sponsored work visa (457) and are applying for a loan then most lenders will not allow you to borrow more than 80%. If you are married to an Australian citizen then they usually have no problems. Some lenders can go up to 95% if your savings history, employment and credit history are all ok.

 

Good luck!

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