Australia currency falls spell property bargains for immigrants

For those planning to migrate to Australia, the 33 per cent drop in the AU$ against the pound sterling over the last year could result in a brand new home at a bargain price.

It’s no surprise that, in February, enquiries from abroad about property for sale in Australia increased ten-fold over January’s figures, with Melbourne, Sydney and Perth seeing the most interest from British buyers. According to one real estate agent, Australia has always been a prime destination for expats from the UK, and is likely to increase in popularity due to the favourable currency rate.

Non-Australian citizens planning to purchase property in their own names must first gain permission from the Foreign Investment Review Board unless they have permanent residency in the country. Should the property be sold at a later date, similar permission is usually needed.

Potential migrants wishing to buy a home in Australia via a deposit and mortgage are not able to get a loan from UK banks, but a history with an Australian bank can be helpful as regards a local mortgage. However, if a property is still owned in the UK, releasing equity by remortgaging could help fund a house purchase in Australia.

Potential expat buyers will need to put aside around five percent of the agreed property purchase price for local taxes, legal fees and land transfer registration charges. The sting in the tail is that, unless a purchaser from overseas already has a visa and a job waiting, he or she is still classed as non-resident and can only buy a new-build home, albeit at a great price.