Buying Vacation Property in Australia?
I am considering investing in some realestate in Australia (I am from Florida, U.S.) for some vacation property. I’ve always dreampt of owning some property over there, and just having a place to go for a nice getaway with the family would be wonderful for me.
I am wondering what the normal process would be for buying some vacation property over there. My price range will be relatively cheap compared to most (100,000 – 250,000 at most) so I may end up with a fixer upper, or either a very small cottage in a small Australian town, possibly in Queensland (which is where I’ve been looking at properties).
My question is, beside the paperwork and being ready and able to make the purchase, is buying vacation property in Australia a generally easy process? Being new to this (buying vacation property in other countries) I am just wondering if anyone else out there, who has done this, can give me some pointers on what to expect when I am ready to make my purchase. As the buyer, from another country, what should I expect and what should I look out for?
Thanks in advance!
As far as I know at the moment, buying property in Australia for non australian residents or citizens is pretty straight forward.
Good holiday homes can be pretty cheap.
Mostly you have to watch out for
1. Bad realestate agents
2. Hidden fees, stamp duty, taxes when making the purchase.
For your price range you are likely to get something at a reasonable price, then rent it out for short-term holiday rentals when you are not there and make some or all of your money back.
The main issue is finding the right location. You don’t so much as want a country town but a tourist town.
February 9th, 2010 at 10:08 am
As far as I know at the moment, buying property in Australia for non australian residents or citizens is pretty straight forward.
Good holiday homes can be pretty cheap.
Mostly you have to watch out for
1. Bad realestate agents
2. Hidden fees, stamp duty, taxes when making the purchase.
For your price range you are likely to get something at a reasonable price, then rent it out for short-term holiday rentals when you are not there and make some or all of your money back.
The main issue is finding the right location. You don’t so much as want a country town but a tourist town.
References :
February 9th, 2010 at 10:13 am
Actually I’m afraid it’s not that easy unless you buy a new property, you need approval from the Foreign Investment Review Board. New properties are not that difficult to buy.
http://www.apimagazine.com.au/api-online/property-investment-articles/buying-real-estate-in-australia-for-overseas-investors
If you need to borrow there are difficulties there also – Australian banks are unlikely to lend to a non-resident, and your local bank is unlikely to lend on the basis of a foreign mortgage.
References :
February 9th, 2010 at 10:51 am
My advice would be to develop a relationship with a reputable real estate agency in the town or region you are looking at. Ring or email and let them know what you are after. They should be able to advise you on the transaction costs of purchase – (they are usually a bit lower in Queensland than some other states) and recommend tradesmen and/or manage the property for you while you are not there. You probably need a local solicitor or conveyancer as well to handle the transaction. LJ Hooker from my experience are pretty good generally and they are spread well around the place ( NB I have no vested interest in Hookers! ). The vacation house property market here has suffered the most of all property in the downturn so you should be able to make a good buy at the moment. Have you considered an apartment – less worries for maintenance, etc.? Are you are aware of the capital gains taxes we have here on property that is not your principal residence – there could be some form of withholding tax? – I’m not sure. Happy hunting.
References :