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  • Buying Property in AustraliaWhat are the Costs?

  • Hello, this is Andrew with Australian Expat Loans. Welcome to this video on buying property

  • in Australia, and what are the costs for Aussie expats and foreign visitors.

  • I’m going to share with you how much deposit you need in buying Australian property, but

  • also what are the costs involved with buying property in Australia.

  • How much deposit do you need? Let me give an example of a property purchase price of

  • $500,000. As a foreign investor youll need a minimum deposit of 20% of the purchase price,

  • so in this example you’d need $100,000 just for the deposit. The other 80% you can finance.

  • Aussie expats are a little bit different. The lenders here will probably go as little

  • as 5%, more commonly 10% of the purchase price, but again in this example $25,000 will be

  • the minimum requirement.

  • The total cost, in terms of the costs that you will need to cover, let’s have a look

  • at those.

  • Lender fee, I’ve just put a figure of $600. With lenders it can vary from $0 to thousands

  • of dollars, but typically $600 will cover their fee.

  • If youre buying in New South Walesand obviously we have a number of states

  • in Australia, but I’ll just use New South Wales here, and it won’t differ that much

  • it’s approximately $18,000 on a $500,000 purchase.

  • Mortgage registration fee and transfer fees are government fees which also need to be

  • included.

  • Foreign investors won’t have to pay a lenders mortgage insurance fee, but if youre an

  • Aussie expat, just to give you an example, if youre buying with a 5% deposit on a

  • $500,000 purchase price, you will probably need to pay a one-off insurance fee to the

  • lender of around $14,000, but that cost can be included in the loan.

  • Solicitor or conveyancing fees to complete the transaction for you, youre probably

  • looking at around $1,500.

  • Again, depending on which lender you use, there may be additional valuation and further

  • legal fees.

  • To give you a total cost:

  • If youre a foreign investor with a 20% deposit, youre probably looking at around

  • $120,000, which is around 24% of the purchase price.

  • Or if youre an Aussie expat, around $45,000, remembering it’s only a 5% deposit in this

  • example, which represents around 9%.

  • The interesting number here is that in both examples, above the deposit you probably need

  • around 4%, so let’s round up to 5% of the purchase price.

  • What that means, for you to make some very simple calculations, if youre a foreign

  • investor or an Aussie expat, no matter what your deposit is, add another 5% of the purchase

  • price.

  • To give you another example, let’s say youre looking at a $600,000 purchase purchase and

  • youve got $150,000 available as a foreign investor. Take away around 5% of the purchase

  • price, which will cover your closing costs, so in this example that’s around $30,000.

  • Just don’t forget, the higher you go in terms of purchase price, the higher the stamp

  • duty, so 5% would cover it. That would leave you, in this example, around $120,000 for

  • a deposit, which is a 20% deposit, and in this example that would work.

  • Just remember, it’s easy. Just add 5% of the purchase price plus your deposit, and

  • if that works out to be sufficient funds you can proceed.

  • The next step from hereyou can do it yourself. There’s plenty of information

  • on the internet to research in terms of home loans, investment loans, conveyance and so

  • on, but if you’d like some assistance, feel free to give us a call.

  • You can call us on +61 2 9965 7292 or contact us online, which is very easy to do. Simply

  • go to www.australianexpatloans.com.au

  • Also, if you want some further free information you can download a free report on our website,

  • which is a guide to buying Australian property, which will answer many of your questions.

  • I look forward to hearing from you. Thank you, and bye for now.

Buying Property in AustraliaWhat are the Costs?

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