A slight improvement in vacancy rates has done little to quell the rental crisis, while a disturbing proportion of home owners are also doing it tough and missing mortgage repayments.
Any joy renters might have had that there had been a fractional improvement in vacancy rates around the country have been extinguished by rents still rising.
For home owners struggling to pay the mortgage, the picture is no brighter.
New research has shown that a worrying one in eight borrowers has missed one or more payment deadlines in the past six months.
An additional 32 per cent of borrowers who did pay on time told the Finder survey that they were worried a missed payment was looming as a scary possibility.
Renters have arguably been the hardest hit cohort of Australians as the cost of living and housing crises have become increasingly problematic.
In a glimmer of good news was PropTrack’s Thursday data showing the share of available rentals further increased in May, with the national rental vacancy rate up 0.08 percentage points (ppt) to 1.30 per cent.
Source: Ray White Group/ABS
This is the highest rental vacancy rate since July 2023, and the first instance of three successive monthly improvements since late-2020.
With overseas migration and student visa applications having peaked, the number of prospective tenants per rental property slightly easing, and more renters entering shared housing options to reduce costs, these factors combined could help to relieve some pressure on the rental market.
According to Rent.com.au statistics released Wednesday (5 June) there was a 7.1 per cent increase in the number of rental properties available nationally in May 2024.
All states and territories recorded increases in rental listing volumes, however, the vacancy rate in Darwin dropped 0.3 per cent to 1.1 per cent in May.
The very modest improvement in vacancy rates the remain chronically tight there was still a 1.7 per cent rise in rents nationally, from $600 to $610 per week. The highest increase in median house rent was recorded in Brisbane (+3.2 per cent; +$20 to $650) while the largest fall was in Canberra (-4.2 per cent; -$30 to $690).
The critical undersupply of current and new rental properties, along continued strong demand and rental price growth, means that it will still be tough going for renters and the rental market will remain extremely challenging for the rest of 2024.
Paul Ryan, Senior Economist, PropTrack, said that while any easing in conditions will be welcomed by renters, available properties remain very scarce with the vacancy rate at around half the levels seen before the pandemic.
“This means competition for rentals will remain strong and rents will continue to increase.
“The easing in conditions over the past three months has been most evident in Perth, Sydney and the ACT, with Perth seeing a substantial improvement after very tough conditions recently.
“While availability remains low across all markets, Adelaide and Brisbane remain the toughest for renters, with rental vacancy rates of 1.03 per cent and 1.11 per cent, respectively.
“We expect renters will face continued difficulty securing rentals and strong rent price growth over the rest of 2024 in these markets,” Mr Ryan said.
Borrowers Trying To Make Ends Meet
A worrying number of homeowners are struggling to keep up with their mortgage repayments, according to new research by Finder, Australia’s most visited comparison site.
A Finder survey of 1,071 respondents – 342 of whom have a mortgage – revealed 12 per cent have missed one or more repayments over the past six months.
That’s an estimated 396,000 borrowers who have fallen behind on their mortgage.
The research found 4 per cent of mortgage holders – 132,000 households – say they have missed one repayment.
A further 8 per cent of mortgage holders – 264,000 households – have missed more than one repayment.
The data revealed 3 per cent have had to ask for a repayment holiday or applied for hardship from their lender.
Richard Whitten, home loans expert at Finder, said mortgage defaults were a growing concern.
“Thousands of mortgage holders have weathered rate rises but are now experiencing extreme financial strain as savings and emergency funds run dry.
“Any further hikes would push many to breaking point.”
Shockingly, 1 in 3 borrowers (32 per cent) are worried they will miss a repayment due to mortgage stress. That’s over 1 million Australians at risk of delinquency.
Of those who missed a repayment, a third (33 per cent) said they ran out of money because of other bills, while 31 per cent said interest rates increased and they could no longer afford it.
Whitten said many Aussies are forking out a disproportionate amount of their income paying off their home loan.
“Interest rates rose so rapidly that mortgagors have reached breaking point with some unable to stay financially afloat.”
Variable rate loans remain the near-unanimous choice of borrowers, according to Helen Avis, Director, Specialist Mortgage.
Back in March 2020, at the start of the pandemic, 13.38 per cent of new borrowers were choosing fixed-rate loans and 86.62 per cent were choosing variable. But in March 2024, a staggering low of only 1.40 per cent of new loans were fixed, compared to 98.60 per cent variable, according to the Australian Bureau of Statistics.
According to data released by Ray White on Wednesday (5 June), Melbourne contains all ten of the top 10 list of suburbs with the most house rentals listed under that benchmark price.
The list is slightly more diverse for renters looking for units. Of the top 10 most affordable suburbs, half come from Melbourne, three come from Adelaide, while Hobart and Sydney offer one.
Atom Go Tian, Senior Data Analyst, Ray White Group, said the share of median asking rent versus weekly earnings was 40.5 per cent for houses and 38.4 per cent for units.
According to ABS, average weekly earnings as of November 2023 was $1,431 per week, a 35 per cent increase from 10 years ago. During the same period, rent has outpaced our growth in earnings with the median asking rent for houses growing by 56 per cent to $580 and the median asking rent for units growing by 52 per cent to $550.
Mr Tian said the balance between real income and rent costs has shifted dramatically, with the past two years having crunched renters.
“For the first eight years of the last decade, the share of rent versus earnings stayed relatively flat between 33 and 35 per cent.
“Weekly earnings growth even outpaced rent growth, with the share of rent reaching its lowest point in 2020 for houses at 32 per cent of weekly earnings and in 2021 for units at 31.4 per cent of weekly earnings.
“Since then, however, rent has skyrocketed.”
Meanwhile, on the rental supply front, the Property Council of Australia on Wednesday welcomed the introduction of the Treasury Laws Amendment (Responsible Buy Now Pay Later and Other Measures) Bill 2024 as recognising the role of build-to-rent (BTR) housing in Australia but warned it does not create a level pathway to support 150,000 new BTR homes by 2034.
Article Q&A
What is the national vacancy rate in Australia?
PropTrack’s June 2024 data shows the share of available rentals further increased in May, with the national rental vacancy rate up 0.08 percentage points (ppt) to 1.30 per cent.
Are borrowers defaulting on mortages?
New research has shown that a worrying one in eight Australian borrowers has missed one or more payment deadlines in the past six months. An additional 32 per cent of borrowers who did pay on time told a Finder survey that they were worried a missed payment was looming as a scary possibility.
Are rents still rising in Australia?
In May 2024, there was a 1.7 per cent rise in rents nationally, from $600 to $610 per week. The highest increase in median house rent was recorded in Brisbane (+3.2 per cent; +$20 to $650) while the largest fall was in Canberra (-4.2 per cent; -$30 to $690).
Which Australian city is the cheapest to rent in?
When it comes to suburbs with rental listings under $500 per week, nowhere comes close to Melbourne. According to data released by Ray White on 5 June 2024, Melbourne contains all ten of the top 10 list of suburbs with the most house rentals listed under that benchmark price.
Buying a property for investment purposes is a different prospect to purchasing the dream family home, and addressing key parameters will help ensure financial success.
Australian property investment has long been recognised as a lucrative venture.
The success of a property investment, however, largely hinges on how thoroughly you perform your due diligence and whether you understand what to look for when assessing a property’s investment potential.
There are a lot of factors that need to be determined to ascertain whether a property is going to lead to financial prosperity.
Here, I will break down how successful property investors look for potential.
Determine Your Real Estate Investment Strategy
You need to put yourself first.
How can you find the right property, if you don’t really know what you are looking for?
The most important thing when buying an investment property and assessing whether it’s potential is to fully understand your strategy.
Start by thinking about what goals you want to achieve and what you want this property to do for you.
Having a clear mindset on what you are looking for is the key to finding investments that will help achieve those goals.
Define your objectives and whether you are looking for capital growth, cash flow, high rental yields, positive gearing, equity creation or a combination.
Your personal situation will influence this, in correlation with your level of risk tolerance. Strategy is based on how quickly you want to see gains, whether it’s short-term gains or long-term wealth creation.
If you carefully plan and align this strategy with financial goals and market conditions, you will reap better investment outcomes.
There’s More To Choosing An Investment Location Than It Might Seem
Look for areas with strong economic growth, robust infrastructure, and good transport links. Thorough research and strategic planning are essential for selecting the right investment location, but it’s not all about location.
When it comes down to looking at the specific property you want to buy, there are particular metrics that can help you evaluate a property’s potential.
Important metrics to consider when looking at a property’s potential include:
Past Sales History Of Your Australian Property
This metric helps you to understand how the property has appreciated over time.
Although future performance is not guaranteed, the sales history can give an indication of how the property might perform in the future, and the property’s growth potential. There are a few ways to find out the past sales history of a property, and subscriptions like RP Data and Pricefinder can assist.
Once you know what the property sold for five or ten years ago you can see what sort of potential you are looking at.
Also, if the property has been transacted multiple times in recent years this may be a red flag, because the property might have issues such as trouble getting development approvals, pest infestations, subfloor or under house/behind wall issues, or there might just too many small maintenance repairs that the cumulative cost becomes too excessive to repair everything.
Properties with a good track record would show the historical sales to double every 10-12 years.
If there is no past sales history available for a property, which is actually quite common if the property has had the same owner for a long period, then you can look at the locations sales history and metrics such as the average annual growth rate.
Days On Market (DOM)
The average days on market can indicate how popular an area is. Areas with a low DOM metric indicates higher demand, compared to areas with increasing or high DOM that indicate decreasing supply or overpriced properties.
This metric can help you identify locations that are strengthening so you can get into the market early.
Extremely low DOM means the market is quite hot and there is risk for buyers to get caught up in the rush and overcapitalise by paying too much.
Rental market
Investors look for areas that are in high demand which can be indicated by the rental market conditions. Areas showing low rental vacancy rates and a high proportion of owner-occupiers tend to offer stability and potential for capital appreciation.
It is important to know the percentage of the population living in that suburb who are renters in comparison to owner occupiers.
Source: CoreLogic
An area may receive good rental returns because it is a popular spot to rent, but if there is a low proportion of owner occupiers living in an area it might really hurt the future value and capital growth of your property when it comes time to sell, if no one actually wants to buy a property there.
An example of this is mining towns where there are a lot of ‘fly in-fly out’ workers who don’t actually want to live or buy a house there, but the companies they work for are paying top dollar to rent properties for their workers.
The rental return might be lucrative because the rental market is strong, but if you are unable to sell your property to anyone this will really damage your investment returns.
The ratio of owner occupiers to renters in an area can also be broken down to a more micro level to see the percentage or renters living in the same street, or even further down into the percentage within an apartment building.
Government-Backed Developments
To uncover the growth potential of a property, you can investigate what developments the government is funding in the suburb and surrounds.
Areas tend to go through strong gentrification and capital growth where the government invests into local amenities and parks, schools, and employment opportunities.
If you want to discuss your Aussie home loan, getting an expat home loan or have a more personal analysis requirement please contact me at Specialist Mortgage and we’ll get you on the path to home ownership.
The Australian real estate market continues to offer stability and promising growth potential. However, as a foreign investor, it’s essential to understand the regulations and considerations involved before proceeding with a purchase.
Foreign investment in Australia is regulated by the Foreign Investment Review Board (FIRB). It’s important to familiarise yourself with these guidelines, as they outline which types of property foreign buyers can purchase and any restrictions or conditions that may apply.
Different rules exist for residential and commercial properties, vacant land, and new developments. To ensure full compliance, seek professional advice and refer to the FIRB website, concludes Helen Avis.
What You Need to Know Before Applying for a Home Loan
Before investing in Australian property, it’s important to define your investment goals and strategy, says Ms Avis. Consider aspects such as capital growth, rental returns, investment timeframe, and your level of risk tolerance.
Research property markets across Australia to identify the regions and property types that best align with your investment objectives. The team at Specialist Mortgage can guide you through every stage of your property purchase journey in Australia.
Working with professionals who specialise in helping foreign buyers can make the entire process much smoother. Seek advice from a real estate or buyer’s agent experienced in assisting international clients.
As part of the SMATS Group of companies, Specialist Mortgage offers clients access to a wide range of services. Helen Avis and her team can connect you with trusted buyers agents, property tax accountants, financial planners, and property professionals who regularly work with foreign buyers.
It’s also advisable to engage a solicitor or conveyancer who can provide legal guidance, handle due diligence, prepare contracts, and manage property transfers. If you intend to lease out the property, consider hiring a property manager to look after tenants, rent collection, and maintenance.
Explore the financing options available to foreign investors through Australian banks and lending institutions. While most Australian banks require foreign buyers to provide a larger deposit than residents, there are lenders who specialise in loans for non-resident investors.
Consult an experienced mortgage broker who understands the needs of foreign buyers and can help you find suitable loan options. It’s also recommended to obtain pre-approval before starting your property search to streamline the buying process.
Foreign buyers should also familiarise themselves with the Australian taxation system and how it applies to their property investment. Seek advice from a qualified tax professional who specialises in international taxation. They can help ensure you remain compliant with your tax obligations, including rental income and capital gains tax, and may also advise on possible tax benefits or exemptions.
Regularly reviewing your property portfolio and keeping track of market trends is important to evaluate the performance of your investment. You may also wish to engage a property investment adviser for ongoing guidance. Specialist Mortgage can connect you with qualified tax agents if required.
Before investing, conduct comprehensive research on the Australian property market, including market trends, historical performance, and future growth potential. Identify areas that show strong fundamentals, such as population growth, employment opportunities, infrastructure projects, and convenient access to amenities.
Analyse local property prices, rental yields, and vacancy rates to identify the most promising opportunities, says Helen Avis. Perform detailed due diligence on any property you’re considering. This includes obtaining building and pest inspections, reviewing strata or community title reports if relevant, and assessing the property’s rental potential.
Engage professionals to conduct property valuations and provide market appraisals so you can make well-informed investment decisions. Once you’ve found the right property, negotiate and secure the Contract of Sale. Have your solicitor or conveyancer review the contract and manage the settlement process on your behalf.
Ensure all required documentation and approvals, including FIRB approval, are in order before finalising settlement. If you intend to rent out the property, engage a reputable property management company to handle tenant selection, rent collection, and ongoing maintenance.
Take time to familiarise yourself with local tenancy laws and landlord responsibilities to remain compliant and safeguard your investment.
Foreign investors can successfully navigate the Australian property market and make informed decisions to achieve their investment goals. Take the first step toward buying property in Australia with an obligation-free consultation by contacting Helen Avis or the Specialist Mortgage team today.
Specialist Mortgage, part of the SMATS Group of companies, provides tailored mortgage solutions for Australian expats and foreign investors. Led by Helen Avis, the team has helped clients around the world achieve their property ownership goals through personalised service and expert advice.
With a strong focus on customer care and in-depth industry knowledge, Specialist Mortgage has established itself as a trusted name in expatriate and foreign national home loans.
When purchasing property in Australia, it’s important to understand how tax rules apply differently depending on whether you’re an Australian resident or a non-resident. Helen Avis of Specialist Mortgage shares what you should keep in mind before making an investment.
Resident vs Non-Resident Tax
Australia’s tax system distinguishes clearly between residents and non-residents. Knowing which category you fall into ensures you stay compliant while also making the most of any tax benefits available. This is especially relevant if you’re an Expat or non-resident and considering buying property in Australia.
As an expatriate home loans specialist, we work closely with a network of trusted advisors. If you’d like tailored guidance, we offer obligation-free consultations and can connect you with professionals who understand both tax and property finance.
The Australian Taxation Office (ATO) determines residency status based on several factors, such as how long you stay in Australia, your intentions to remain, and your connections to the country. In general, if you reside in Australia or maintain strong ties here, you’ll likely be considered a resident for tax purposes.
In the meantime, here’s an overview of the key differences in tax treatment between residents and non-residents.
Tax Rates, Double Tax Agreements, and Capital Gains Tax (CGT)
Australian residents pay income tax on their worldwide earnings, which can include salary, investments, business income, and rental properties. Non-residents, however, are typically taxed only on income sourced from Australia, such as rental income from an Australian property.
The tax rates for residents and non-residents are also applied differently. Residents are taxed on a progressive scale, meaning higher earnings are taxed at higher rates. Non-residents, on the other hand, pay a flat rate on their Australian income, which is generally higher than resident rates.
Residents are also subject to Capital Gains Tax (CGT) on the sale of assets both in Australia and overseas. They may be eligible for concessions such as the 50% CGT discount for assets held longer than 12 months. Non-residents are usually only taxed on the sale of Australian property or specific taxable assets.
To prevent individuals from being taxed twice, Australia has Double Taxation Agreements (DTAs) with many countries. These agreements set out which country has taxing rights and can provide credits or exemptions. As part of the SMATS Group, Specialist Mortgage has access to experienced tax agents who can help with personalised tax strategies if needed.
Residents are generally required to pay the Medicare Levy, a contribution towards Australia’s public healthcare system. Non-residents do not usually pay this levy, although the Medicare Levy Surcharge may apply if private health insurance is not in place.
Superannuation or retirement savings also play an important role in Australia’s tax system. Residents can make contributions to superannuation and access concessional tax benefits. Non-residents, however, can only contribute if they are working in Australia.
Other tax rules for non-residents include withholding taxes on certain types of income such as dividends, interest, and royalties. The impact of these taxes may also vary depending on tax treaties between Australia and your home country.
Understanding how Australian tax applies differently to residents and non-residents is essential for anyone considering property investment. Residents are taxed on global income, while non-residents are generally taxed only on Australian earnings. Each category is subject to different tax rates, exemptions, and concessions. To ensure full compliance and to make the most of any available benefits, it’s recommended that you seek guidance from a qualified tax specialist.
Securing a home loan in Australia can be more complex for self-employed borrowers, particularly when they are also expatriates or foreign buyers, this is according to Helen Avis, Director of Finance at Specialist Mortgage. Traditional lenders often apply stricter lending criteria and require more comprehensive documentation for non-standard applicants.
However, with the right preparation and expert guidance, self-employed individuals can significantly improve their chances of loan approval. Below, we explore key steps and options available to help you navigate the process.
Keep Your Financial Records Accurate and Up to Date
For self-employed borrowers, accurate and up-to-date financial records are essential. These should include tax returns, income statements, profit and loss reports, and bank statements. Most lenders will request at least two years of financial history to confirm income consistency and demonstrate your ability to service the loan.
Working with an accountant or tax professional who understands the needs of self-employed borrowers can make a significant difference. They can assist with organising financial documents, ensuring tax compliance, and advising on how your income is structured to meet lender requirements. Professionally prepared documentation can help strengthen your loan application.
Lenders assess income stability to determine borrowing capacity. If you are self-employed, it’s important to show that your income is reliable and ongoing. Providing a clear business plan, client contracts, or ongoing agreements can help demonstrate long-term sustainability and reassure lenders of your repayment ability.
Saving a solid deposit is particularly important for expatriates and foreign buyers applying for an Australian home loan. In many cases, lenders require a higher deposit to reduce risk. A larger deposit lowers your loan-to-value ratio (LVR) and can improve approval prospects, as well as potentially lead to more competitive loan terms.
Specialist lenders focus on borrowers who don’t always fit traditional lending models, including self-employed applicants, expatriates, and foreign buyers. These lenders understand complex income structures and overseas circumstances. Working with an experienced mortgage broker can help connect you with lenders that offer flexible and tailored loan solutions. Specialist Mortgage has supported the expat community for over 30 years. If you want the expertise, reach out to Helen Avis and her team for expert guidance and an obligation-free discussion.
A positive credit history remains critical, regardless of your employment status or residency. Regularly reviewing your credit report helps ensure accuracy and allows you to address any issues early. Making repayments on time and managing existing debts responsibly will strengthen your position when applying for a mortgage.
Expatriates and foreign buyers should be ready to provide further documentation as part of the loan application process. This may include visa information, proof of overseas income, employment contracts, and evidence of currency transfers. Having these documents organised in advance can help streamline the assessment process and improve lender confidence.
Plan Ahead for Expat and Foreign Buyer Requirements
Applying for a home loan in Australia as an expatriate or foreign buyer involves additional considerations. Factors such as visa status, foreign income sources, and currency exchange exposure can all impact lending decisions. Understanding these requirements early allows you to plan effectively and navigate the process with greater confidence.
If you’d like to learn more about your options or need help securing a self-employed, expat, or foreign buyer home loan, contact Helen Avis or the team at Specialist Mortgage today to discuss your Australian home loan requirements.
Getting approved for a home loan in Australia isn’t always easy. Traditional lenders often have strict requirements, and if you don’t meet them, a non-conforming home loan could be a good option for you.
These loans are designed for people who don’t meet the usual lending requirements. Helen Avis from Specialist Mortgage explains how these loans work and how they can help you.
Let’s break it down in simple terms so you can decide if this type of loan is right for you.
What Is a Non-Conforming Home Loan?
A non-conforming home loan, also called a specialist loan, is for people who may not qualify for a standard loan from a major bank.
Eligibility requirements can differ between lenders, but typically, borrowers must submit additional documentation and meet certain conditions. Commonly requested documents include:
Bank statements
Proof of income or business documents (if self-employed)
Details of your current debts and assets
A steady income (even if it’s not from a regular job)
Lenders providing non-conforming loans assess the borrower’s full financial profile, including income, assets, and liabilities, to accurately determine their ability to repay the loan.
Are Fees and Interest Rates Higher for Non-Conforming Home Loans?
Non-conforming loans carry more risk for lenders because borrowers do not meet traditional qualification criteria.
To manage this risk, lenders may charge:
Higher interest rates
Upfront fees like application and valuation fees
Lender’s Mortgage Insurance (LMI) if your deposit is small
Lenders may also limit the Loan-to-Value Ratio (LVR). This means you might need a larger deposit than usual. These factors are important to consider when budgeting for your loan.
Non-conforming loans offer flexible features like interest-only payments, extended loan terms, and the ability to make extra repayments. These can help borrowers customise their loans to fit their financial needs, but it’s important to ensure they align with your repayment ability and goals.
How to Secure a Non-Conforming Home Loan
For non-conforming loans, the best approach is to speak with a mortgage broker who specialises in these loans. They will:
Match you with the right lender
Explain the pros and cons of each product
Simplify the application process
The team at Specialist Mortgage are here to help if you want to apply for an Australian home loan.
Non-conforming loans may seem complicated, but with the right guidance, they can open doors that traditional lenders may have closed. Whether you’re self-employed, an Australian expat looking to buy back home, or rebuilding your finances after setbacks, there are options available.
For an obligation-free chat about your home loan or expat home loan options, contact Helen Avis and Specialist Mortgage today.
On May 14th Treasurer Jim Chalmers delivered the 2024-25 Federal Budget, with a central focus on alleviating the cost of living pressures felt by Australian’s through promised tax cuts for every taxpayer.
Central focus remains on alleviating the cost of living pressures currently being felt by Australians. The current Government recently modified the previous legislated tax cuts to offer less savings to the higher paid and more to the middle income bracket in order to try and soften the impact of inflation, which has started to slow, albeit not yet to the preferred range of the Reserve Bank.
In his most recent address, Chalmers said “The global economy is uncertain and unpredictable, fraught and fragile” influenced by conflicts in the Middle East and Eastern Europe, fragmenting global supply chains, and inflation concerns in North America and China
Australians are eager to know how this Government will address national and economic security with rising global uncertainty in this Budget. And, how it will solve cost of living pressures beyond the Stage 3 tax cuts, as well as shortcomings in education, housing, medical and defence.
Will the Future Made in Australia Act and delivering a global net zero economy be a major focus, and what will this mean for Australian businesses?
And most importantly, what impact will the Budget have on you and your family?
Watch Our 20th Annual Australian Budget Review Webinar!
We invite you to watch our 20th Annual Australian Budget Review Webinar, presented by Steve Douglas, to gain insight into:
Key insights into the Federal Budget announcement
Analyse the economic responses and new initiatives
Review the revenue and expenditure priorities
Evaluate how the budget may shape the economy
The budget impact on Australians, expats, intended migrants and investors
Assess the affect the budget may have on Australia’s property markets.
Insights From Your Mortgage Broker, Helen Avis Of Specialist Mortgage
Entering the new year, we are flooded with predictions and forecasts from the media as to what property prices, interest rates and what the direction the industry in general may or may not be heading. Each economist, commentator and journalist has either opposing or complimentary sentiments and its difficult to know where anything is heading!
Here are my thoughts for the year taking into account the varying shades of insight. The Australian property market is definitely poised for dynamic shifts and challenges and as a mortgage broker I’m at the frontline facilitating property transactions and may be able to offer some more tangible insights likely to share the real estate landscape.
Australian Home Loans – Interest Rates And Housing Affordability
I do agree, there will be a continued impact of interest rates on housing affordability. As rates fluctuate, they play a pivotal role in influencing borrowing capacities and, consequently, property prices. Exploring competitive loan options and understanding interest rate movements becomes crucial for both first-time buyers and seasoned investors.
Buying Property In Australia
The trend of regional property resurgence is anticipated to persist. We’ve seen an increasing number of individuals seeking the tranquillity and lifestyle benefits offered by regional areas. This shift not only diversifies investment opportunities but also challenges the conventional notions of property hotspots.
The Digital Age And Its Effect On Australian Property And Mortgages
In an era dominated by technological advancements, I am predicting an accelerated integration of digital tools in property transactions. From virtual property tours to streamlined online mortgage applications, technology is set to enhance efficiency and convenience in the buying and selling processes.
Changes in government policies and regulations often have a direct impact on the property market. Industry leaders have emphasised the importance of staying informed about policy shifts related to grants, incentives and lending criteria but it is hard to stay on top of and it is always changing, so if you are starting to look at purchasing options get in touch so I can update you on the changes that have been made and what’s potentially coming. These changes can significantly influence market dynamics and individual purchasing power.
Going Green – Environmental Sustainability When It Comes To Getting A Home Loan
A growing consciousness about environmental sustainability is influencing property preferences too. I’m seeing a higher demand for eco-friendly homes and properties with sustainable features. This trend reflects not only a shift in lifestyle choices but also an awareness of long-term environmental impacts.
Given the unpredictability of global and economic factors, we do seem to stress the importance of adaptability! Navigating uncertainties requires a proactive approach, strategic financial planning, and a willingness to explore diverse property investment avenues. I’ve got a great team behind me and we are here to help so that you don’t have to do it alone. We’ve got access to a great number of resources to assist you too.
As we navigate the intricate landscape of the 2024 property market, hopefully these insights serve as a compass, guiding both buyers and sellers. The ability to embrace change, stay informed, and leverage professional expertise positions individuals for success in the Aussie real estate environment and I am only a message, call or email away!
Thinking about buying property in Australia while living overseas? You’re not alone. For many Australian expats, investing back home is a smart move, offering both personal and financial benefits. However, without the right guidance, the process can feel complex.
Helen Avis, an experienced mortgage broker and Director of Specialist Mortgage, helps expats around the world secure Australian home loans with confidence. Here’s her expert guide to making the journey as easy as 1, 2, 3.
Are You Ready to Buy Property in Australia?
Before diving in, take time to research the Australian property market. Whether you’re planning to return soon or simply looking to invest, understanding current trends is essential. Consider:
Property prices and capital growth potential
Rental yields in your preferred suburbs
Interest rate movements
Local supply and demand conditions
Our mortgage professionals will be able to put you in touch with their trusted network of real estate agents, buyer’s advocates, accountants, and legal experts to help you begin the process with confidence.
Before purchasing property, it’s important to assess your financial goals and set a realistic budget. It’s helpful to know which suburbs offer what you are looking for, but are they within your reach? Defining your budget helps you and your mortgage broker understand the price range you can comfortably consider.
Speaking with an experienced Australian expat mortgage broker is a wise move. They can determine how much you may borrow, how much deposit you’ll need, and whether you’re eligible for any incentives or benefits. Their insights can make the process smoother and more affordable.
Get Professional Help When Buying Property in Australia
We don’t claim to be experts in everything, so why pretend? The Australian property market can be complex, and it’s best to get help from professionals. A real estate agent can help you find the right property that suits your needs, and a mortgage broker will assist you in securing financing options tailored to you. Meanwhile, a solicitor will guide you through the legal processes involved in property transactions, ensuring everything is done properly.
Arranging finance can be challenging, especially for expats and repats. You may face additional complexities such as proving foreign income or navigating stricter lending policies. Exploring options like securing a mortgage through an Australian lender or using funds in an Australian bank account can be beneficial.
Talk to a mortgage broker who specialises in expat loans. They can explain eligibility requirements, interest rates, and the terms of both expat and non-resident loans to help you find the right solution.
The most common question we receive is: “How can I buy property in Australia if I’m not physically there? I can’t inspect the property myself!”
While it’s ideal to visit potential Australian properties yourself, Buyers Agents are increasingly engaged by expats. They can help to conduct inspections, access comprehensive property reports and evaluate properties on your behalf in terms of fit, investment goals, preferred location, and required standards.
Once you’ve identified a property (virtually or otherwise), you can submit an offer through your real estate or buyer’s agent. You may be advised by real estate or legal professionals to make your offer conditional on due diligence, building inspections, finance approval, and title checks.
After completing due diligence and legal formalities, the next step is moving forward with settling the purchase. Work closely with your solicitor, lender, and agent to ensure a smooth settlement. Our dedicated team specialises in assisting expat lending and understands the complexities involved.
Buying property in Australia as an expat comes with extra considerations, but with the right research, planning, and expert advice, it’s entirely achievable. By understanding the market, following legal requirements, and working with experienced professionals, expats can successfully invest in Australian real estate.
The potential benefits include long term capital growth and rental income. So, could this be the right time for you to invest in Australian property?
Your Trusted Partner for Australian Expat Home Loans
For a no-obligation consultation, contact Helen Avis or the team at Specialist Mortgage today.
With a strong reputation for exceptional service and industry expertise, Specialist Mortgage is a leading provider of home loan solutions for expatriates and foreign nationals.
How To Make Buying Australian Property As An Expat As Easy As 1, 2, 3?
For Australian expatriates wishing to invest in property back home navigating the process can seem daunting. Being armed with the right information and planning makes buying Australian property as an expat a feasible and rewarding endeavour. Helen Avis of Specialist Mortgage is a seasoned professional when it comes to expatriate finance. Here, let Helen Avis step you through the basics to successfully navigate the Australian property market.
Are You Ready To Purchase Australian Property?
Like everything in life you need to be prepared before starting anything. Before jumping straight in it’s crucial to research and understand the Australian property market. Consider factors such as market trends, property prices, rental yields, and economic conditions. Engage with local real estate agents and online resources to gather relevant information or speak to one of our friendly mortgage professionals and they’ll point you to the right person. We have a network of agents, accountants & brokers to provide you with the knowledge you need before embarking on one of life’s biggest investments.
Can You Afford An Australian Home Loan?
Don’t forget about your financial goals and budget too. It’s all very well to know what suburb is providing a sound return on investment but can you actually afford it? It’s important to first know the purchasing budget you are working with. That way you, and your mortgage broker will get a better understanding of your purchasing range and the properties you can look at.
Having a chat with an experienced Australian expat mortgage broker will give you a good indication of your borrowing capacity, and how much deposit you will need to have for the Australian property you are going after. Your Australian mortgage broker will then being able to pin point some of the incentives you may be eligible for also.
Get Professionals In Your Corner For All Things Aussie Property.
We’re not experts at everything so why pretend to be? To navigate the complexities of the Australian property market, we do advise to engage the services of professionals such as a real estate agent, mortgage broker, and a solicitor. A reputable real estate or buyer’s agent can assist in finding suitable properties, your mortgage broker can help secure financing options tailored to your needs & a solicitor will guide you through the legal processes involved in property transactions.
Did you know if you purchase a property in New South Wales on the East Coast of Australia, whilst only holding a PR status and not hold an Australian passport, you would be subject to an additional 8% stamp duty surcharge on the purchase? It’s important to understand your liabilities and having an expat mortgage broker will only strengthen your options when purchasing Australian Property
The Fund Part – Accessing Australian Home Loans.
Arranging finance is tricky for everyone, and as an Aussie expat or repat there can be some loopholes and barriers. Exploring your financial options like securing a mortgage from an Australian lender or utilising existing funds in an Australian banking institution can really help. Talk to us, or consult a mortgage broker so you can understand the requirements, interest rates, and terms and conditions associated with Australian expat mortgages and non-resident lending.
Virtual Reality When Purchasing Bricks And Mortar Investments.
The biggest question we get all the time is how can I purchase property in Australia if I’m not physically in Australia? I can’t go and inspect properties?!
Yes, its always best if you can personally inspect potential Australian properties but in this digital age it is not uncommon for even locals to not even set foot in their future home. You can now leverage technology to conduct virtual property inspections, seek detailed property reports, and engage with trusted individuals to assess properties on your behalf. Ensure the property aligns with your investment goals, location preferences, and meets necessary standards.
Once you have identified a property, (digitally or elsewise!) make an offer through your real estate or buyer’s agent. Ensure the offer is contingent upon due diligence, including property inspections, finance approval, and legal requirements and negotiate the purchase price and terms to reach an agreement beneficial to both parties. You can do this all electronically and remotely if required.
After due diligence and legal processes are completed, proceed with settling the property purchase. Coordinate with your solicitor, lender, and real estate or buyer’s agent to ensure a smooth settlement process. We too can take care of this entire process for you with our dedicated team that work with expat clients daily. We know the ins and outs and act as your proxy every step of the way.
Purchasing Aussie Property Worldwide.
Buying Australian property as an expatriate may require additional considerations and processes, but with thorough research, professional assistance, and careful planning, it is an achievable goal. By understanding the market, adhering to regulations, and engaging the right professionals, expats can successfully invest in Australian property, benefiting from long-term capital growth and potential rental income. Is it time you invested in Australian soil?
Specialist Mortgage, a part of the SMATS Group, specialises in providing tailored mortgage solutions for Australian expats and foreign investors. The team of experts led by Helen Avis, have consistently provided tailored mortgage solutions to clients worldwide, helping them achieve their property ownership dreams.
With a focus on personalised service and in-depth industry knowledge, Specialist Mortgage has established itself as a leader in expatriate and foreign national home loans.
Source: Ray White Group/ABS
