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Guest thelongwait

'temporary resident' buying first home

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Guest thelongwait

Hi.

We are temporary residents of Oz, waiting nearly 2 years for residence visa. no idea how much longer we will have to wait!

since the rules changed this year, temporary residents are now allowed to buy second hand properties and we are thinking of buying our first home.

 

Can anyone tell us the disadvantages of buying when only 'temporary resident'?

 

we realise we won't be eligible for the government first home grant, nor the stamp duty waiver.

 

if our visa is refused and we have to leave Australia, will we be hit really hard with capital gains tax when we sell the home?

 

and are there any other hidden disadvantages?

thanks!

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We bought our house earlier this year on a 457 temp visa. We used a financial advisor recommended to us from a friend. He was brilliant from start to finish. At the time (and things could have changed in 6 month) we could only go to 2 lenders and most others were pulling out. The biggest disadvantage was that we had to pay a 20% deposit or take out mortage insurance. We just paid the 20%.

We are now PR visa holders and I'm sure we can't get 1st home owners, even though we now have PR, but we are going to apply anyway. They can only say no!

I think the stamp duty only applies to $500K or more, but I could be wrong.

 

My advise, get a good financial advisor. They don't cost you anything and they know the ins and outs.

 

Good luck

 

Frank

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Guest MSTO
Hi.

We are temporary residents of Oz, waiting nearly 2 years for residence visa. no idea how much longer we will have to wait!

since the rules changed this year, temporary residents are now allowed to buy second hand properties and we are thinking of buying our first home.

 

Can anyone tell us the disadvantages of buying when only 'temporary resident'?

 

we realise we won't be eligible for the government first home grant, nor the stamp duty waiver.

 

if our visa is refused and we have to leave Australia, will we be hit really hard with capital gains tax when we sell the home?

 

 

 

and are there any other hidden disadvantages?

thanks!

We were temporary residents when we bought our house 3.5 years ago although back then we had apply to the Foreign Investment Review Board. We too had to put a 20% deposit down. As for the First Time Buyers Grant you had 12 months to apply (or did back then)...we actually applied for ours 13 months after as we got PR 13 months after buying our house, this was turned down but we appealed based on we were eligible in the Feb and it was not our fault it took Immigration so long to process our application....guess what we won and got the First Time Buyers Grant...so if I was you apply for it anyway.:biggrin:

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You should be OK with capital gains as it will still be your main home if you leave Australia. The only time you would be affected for CGT would be if you left and rented it out for a number of years or if you bought a second place as you can only have one main residence.

 

From what I have read as a temporary resident you will usually have to put up 20% deposit (with no option of borrowing more and paying LMI) and the number of lenders that will lend will be limited so the interest rate may not be so competetive.

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Guest

I am a mortgage broker in Perth, WA (but I do plenty of mortgages for people on the east coast with 15 years experience in broking. Originally from Yorkshire, I know what it's like in the early months.

 

When you are on a temp 457 Visa, the lender requires extra security incase you decide to give up and go back to the UK when you will have to then sell the house quickly.

Some lenders require you put down a 20% deposit, others require more!!!

 

There is the secuity guarentor method if you have a family member willing to put up their house as additional "limited" security then you can get away with a smaller deposit.

 

Also, if the house if for yourself to live in, you no longer need approval from the FIRB.

 

PM me if you need to discuss further.

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Guest adamsfamily

hi thankyou for that information. I was also under the impression if you do not own anothere property and you are buying to live in then you no longer need FIRB Approval but quite a few of the show homes that we have looked around in the guys keep saying that i have that wrong. Also, do we have to pay stamp duty in Perth if we buy a house for around 450k? if so how much would it be?

many thanks, nikki.

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hi thankyou for that information. I was also under the impression if you do not own anothere property and you are buying to live in then you no longer need FIRB Approval but quite a few of the show homes that we have looked around in the guys keep saying that i have that wrong. Also, do we have to pay stamp duty in Perth if we buy a house for around 450k? if so how much would it be?

many thanks, nikki.

 

500k in Wa ,we just had one built and paid no stamp duty i think lol, if you are looking at h &L packages we paid no stamp duty , we went with govt keystart low deposit last year as banks wanted lendin insurance on a 400k+ lookin a 20k insurance nah


Here at last:jiggy:

SUFC life not a pastime

I limit myself to 2 drinks a day, I`m now 10 years in front make that 15

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Guest
hi thankyou for that information. I was also under the impression if you do not own anothere property and you are buying to live in then you no longer need FIRB Approval but quite a few of the show homes that we have looked around in the guys keep saying that i have that wrong. Also, do we have to pay stamp duty in Perth if we buy a house for around 450k? if so how much would it be?

many thanks, nikki.

 

 

Hi Nikki.

 

The FIRB changed in April and you are correct, you would not need FIRB approval if you don't own property and your going to live in it.

 

Yes you would have to pay stamp duty on purchasing a property in WA for $450k of approx $15,000. But, if your are building, you only pay stamp duty on the land price and not the build price. $200,000 = $6500.

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Guest adamsfamily

thankyou for clarifying that for me.

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