Queensland, South Australia and Tasmania have in the past week made changes to their stamp duty and first home buyers grant offerings, so API Magazine has provided a clear guide as to what’s available in your state or territory.
Buying that first home is stressful enough as a life-changing commitment, so the added confusion around what the different states and territories offer by way of grants and stamp duty concessions only adds to the worries.
Queensland on Sunday (10 June) increased its stamp (transfer) duty threshold by $200,000 for first home buyers to $700,000. The concession then phases out up to values of $800,000.
The Steven Miles Labor Government estimated the changes would support around 10,000 buyers a year to buy their first home.
Foreign buyers will go some way towards offsetting the state’s lost revenue.
The Queensland Government has increased the foreign investor land tax surcharge to 3 per cent, which is closing in on New South Wales and Victoria who set their surcharges at 4 per cent. Transfer duty surcharge for foreign buyers is being brought into line with New South Wales and Victoria at 8 per cent.
State governments have become heavily reliant on the stamp duty fees (under whatever alternative name they prefer to apply to that tax).
In just Brisbane, for example, in the past four years the state government has collected $216 million in ‘transfer concessions’ applied to 17,660 first home buyer transactions in the state capital alone.
A further 76,241 homeowners had the transfer duty home concession applied to the purchase of their Brisbane home.
For first home buyers, the financial burden is compounded by the uncertainty around what concessions and grants available to them.
To help first home buyers navigate the maze of offerings, API Magazine has compiled the following guide to what is on offer across the various jurisdictions.
New South Wales
A $10,000 First Home Owner Grant (FHOG) is available when you buy or build your first new home. The dwelling can be a house, townhouse, apartment, unit or similar that is newly built, purchased off-the-plan or substantially renovated.
For a newly built house, townhouse, apartment, unit or similar, the purchase price must not exceed $600,000.
If purchasing vacant land and signing a building contract with a builder then the government adds the value of the vacant land plus the value of the comprehensive home building contract plus the cost of any building variations done together. The total combined cost must not exceed $750,000.
The NSW Government also doesn’t charge first home buyers stamp duty on properties valued at up to $800,000, or vacant land valued at up to $350,000.
It offers discounted stamp duty for first time buyers purchasing properties worth between $800,000 and $1 million and land worth between $350,000 and $450,000.
Victoria
A FHOG of $10,000 is available for those buying their first home valued at up to $750,000.
Stamp duty is waived for principal properties of residence (PPR) valued up to $600,000, or a concession for a PPR with a dutiable value from $600,001 to $750,000.
Queensland
The first home owner grant was recently doubled and now gives eligible first-time home buyers $30,000 towards buying or building a new home in Queensland (but it’s only eligible until 30 June 2025).
As mentioned above, first home buyers now receive concessions on transfer duties for properties valued up to $700,000, up from the previous $500,000. The threshold for concessions will also rise on vacant land valued up to $350,000, from $250,000.
As part of the 2024-25 State Budget, the Government increased the first home buyers transfer duty concession threshold for established homes from $530,000 to $600,000, and the exemption threshold from $430,000 to $450,000.
This means Western Australians buying their first home will pay no stamp duty on purchases up to $450,000 and will receive a concessional stamp duty rate on properties valued up to $600,000.
Eligible first home buyers can receive a $10,000 grant towards buying or building a new home, or a grant equal to the consideration paid to buy or build a house if less than that amount.
WA’s north and south are also treated differently. To receive the grant, those in the Perth metropolitan area must the limit the combined cost of land and building to below $750,000. North of the 26th parallel (from Shark Bay onwards) that value is $1 million.
South Australia
South Australia can lay claim to the friendliest environment for first home buyers looking for a helping hand.
June’s 2024-25 Budget abolished property value thresholds for both the stamp duty exemption and FHOG at a cost to the state of $30 million over four years.
With the abolition of property value limits, a first homebuyer who purchases a new dwelling broadly in line with the median house price of $750,000 will receive a benefit of over $50,000, including the First Home Owner Grant of $15,000.
The stamp duty exemption will be available to all first home buyers who buy a new home (including a house, flat, unit, townhouse or apartment), an off-the-plan apartment, a house and land package or vacant land to build a new home.
Tasmania
Liberal Party Premier Jeremy Rockliff on 26 May made good on an election promise by exempting first home buyers from stamp duty on properties valued at up to $750,000.
First home buyers might want to strike early though, as the exemption is expected to run until mid-2026 before being revoked or at least reviewed.
Eligible first home buyers in Tasmania can receive a $30,000 grant if they are purchasing or building a new home and unlike elsewhere in the country there is no price cap on the value.
Northern Territory
First home buyers in the Top End face a relatively harsh introduction to the property market.
While there is access to a $10,000 FHOG (known as the BuildBonus grant and Territory Home Owner Discount), stamp duty exemptions that were in place up to June 2021 are no longer available.
Australian Capital Territory
The ACT’s FHOG has been replaced by the new Home Buyer Concession Scheme.
First home buyers can save a maximum of $34,504 but the amounts vary according to the buyer’s income and family size.
For more detailed information, including the myriad terms and conditions that inevitably apply, buyers should check with their jurisdiction’s state or territory Revenue Office.
Article Q&A
Can first home buyers get stamp duty concessions?
Stamp duty rules vary around Australia’s states and territories, ranging from South Australia’s newly introduced complete exemption, through to the Northern Territory’s lack of any concessions at all.
What grants are available for first home buyers?
First home owner grants (FHOGs) range in value from $10,000 to $30,000 across Australia’s states and territories, with the Northern Territory, New South Wales, Victoria and Western Australia at the lower end, with Tasmania’s and Queensland’s $30,000 at the top of the tree.
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.
Investing In Australian Property As A Foreign Buyer Can Be An Attractive Opportunity!
Given the stability and potential for growth in the Australian real estate market, especially at the moment.
However, as a foreign buyer you need to navigate certain regulations and considerations before making an investment. Helen Avis of Specialist Mortgage discusses.
Foreign investment regulations in Australia are governed by the Foreign Investment Review Board (FIRB). It is crucial to familiarise yourself with these regulations, as they determine the types of properties you can purchase and any restrictions or conditions that may apply. Different rules apply to residential and commercial properties, vacant land, and new developments. Ensure compliance with the regulations by seeking professional advice and consulting the FIRB website, concludes Helen Avis.
Investing In Australian Soil? What You Need To Know To Gain An Australian Home Loan
Before you invest in Australian property, define your investment strategy and goals says Ms Avis. Consider factors such as capital growth, rental income, investment duration, and risk tolerance. Research different property markets across Australia to identify regions and property types that align with your investment objectives. The team at Specialist Mortgage can assist you with all parts of your Australian property purchase journey.
Engage professionals who are experienced in assisting foreign buyers can greatly facilitate the investment process. Seek guidance from a real estate or buyer’s agent specialising in working with foreign buyers. Specialist Mortgage is part of the SMATS Group and has a range of services available to their clients. Helen Avis and her team can assist with putting you in touch with a buyer’s agent and real estate professionals that are experienced with foreign buyers.
Consult with a solicitor or conveyancer who can provide legal advice and assist with due diligence, contracts, and property transfers. Additionally, consider engaging a property manager to handle rental management if you plan to lease out the property.
Explore financing options available to foreign buyers with Australian banks and lending organisations. While Australian banks generally require foreign buyers to provide a larger deposit compared to residents, there are lenders who specialise in providing loans to non-resident investors. Consult with mortgage brokers who have experience working with foreign buyers to access suitable loan options and obtain pre-approval before commencing property searches.
Understand the Australian taxation system and how it applies to foreign investors. Seek advice from a qualified tax professional who specialises in international taxation to ensure compliance with tax obligations, including rental income, capital gains tax, and potential tax benefits or exemptions. Regularly review your investment portfolio and monitor market conditions to assess the performance of your Australian property investment. Consider engaging a property investment advisor who can provide ongoing guidance and help optimise your investment strategy. Specialist Mortgage has access to tax agents should you need one.
Get To Know The Australian Property Landscape
Conduct thorough research on the Australian property market, including market trends, historical performance, and future growth prospects. Identify locations that demonstrate strong market fundamentals, such as population growth, employment opportunities, infrastructure development, and access to amenities. Research local property prices, rental yields, and vacancy rates to evaluate potential investment opportunities says Helen Avis.
Perform thorough due diligence on potential properties of interest. This includes obtaining building and pest inspections, reviewing strata or community title reports (if applicable), and assessing the property’s rental potential. Engage professionals to conduct property valuations and provide market appraisals on your behalf to ensure you make an informed investment decision.
Once you have identified a suitable property, negotiate and secure a Contract of Sale. Engage a solicitor or conveyancer to review the contract and handle the settlement process on your behalf. Ensure that all necessary documentation and approvals, including FIRB approval, are in order before proceeding with the settlement.
If you plan to lease out the property, engage a reputable property management company to handle tenant selection, rent collection, and property maintenance. Familiarise yourself with local tenancy laws and landlord responsibilities to ensure compliance with regulations and protect your investment.
Are You Ready To Buy Australian Property?
Foreign buyers can navigate the investment process and make informed decisions to achieve their investment goals in the Australian property market, so what are you waiting for? For an obligation free consult contact Helen Avis or Specialist Mortgage today and invest in Australian Property.
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.
Helen Avis of Specialist Mortgage discusses what you need to know.
Resident vs. Non-Resident Australian Tax – What Is The Difference?
Australia’s tax system is structured differently for Australian residents and non-residents, and it is important for individuals to understand the distinctions to ensure compliance and optimise their tax obligations especially if you’re interested in buying Australian Property as an Expat or non-resident.
As specialists in expatriate home loans we have a vast network of trusted advisors and if you want specific information to your circumstances you can contact us today for an obligation free consult. We can provide a detailed outline of the key differences in Australian tax treatment between residents and non-residents, including income tax, capital gains tax, and other related considerations. In the meantime, here’s a brief summary to get you started.
The first step in determining the tax treatment you need is establishing residency status for tax purposes. The Australian Taxation Office (ATO) considers various factors, such as the length of stay, intention to reside, and ties to Australia. Generally, an individual is considered an Australian resident for tax purposes if they reside in Australia or have significant ties to the country says Helen Avis.
Australian Tax And The Different Tax Rates, What Are DTAs And CGT?
Residents are subject to Australian income tax on their worldwide income. This includes income from employment, business activities, investments, and rental properties. Non-residents, on the other hand, are generally taxed only on their Australian-sourced income, such as employment income earned in Australia or income generated from Australian assets.
The tax rates applicable to residents and non-residents differ. Residents are subject to progressive tax rates, meaning the more income they earn, the higher the tax rate they pay. On the other hand non-residents, are subject to a flat tax rate on their Australian-sourced income, which is generally higher than the tax rates for residents.
Residents are also subject to Capital Gains Tax (CGT) on the disposal of assets, both in Australia and overseas. They are eligible for various exemptions, discounts, and concessions, such as the 50% CGT discount for assets held for more than 12 months. Non-residents are generally only subject to CGT on the disposal of Australian real property or certain taxable Australian assets.
Australia has Double Taxation Agreements (DTAs) with many countries to prevent double taxation. These agreements provide relief to individuals who may be liable for tax in both Australia and their home country. DTAs generally determine the taxing rights for different types of income and provide mechanisms for claiming credits or exemptions. Specialist Mortgage are part of the SMATSgroup and have access to tax agents should you require some personalised assistance.
Other Considerations, Its Not A One Size Fits All.
Residents are required to pay the Medicare Levy, which helps fund Australia’s public healthcare system. The levy is calculated as a percentage of taxable income. Non-residents are generally not liable for the Medicare Levy, although they may be subject to the Medicare Levy Surcharge if they do not have private health insurance.
Superannuation, or retirement savings, is an important aspect of the Australian tax system. Residents are eligible to contribute to superannuation and enjoy tax benefits such as concessional tax rates on contributions and tax-free withdrawals after preservation age. Non-residents can only contribute to superannuation if they are employed in Australia.
There are additional tax considerations for non-residents, such as the application of withholding taxes on certain types of income, including interest, dividends, and royalties. Non-residents may also be subject to specific tax treaties between Australia and their home country, which could impact their tax liabilities.
Understanding the difference in Australian tax treatment between residents and non-residents is essential for individuals to fulfill their tax obligations and optimise their tax positions. Residents are subject to tax on worldwide income, while non-residents are generally taxed only on Australian-sourced income. Different tax rates, exemptions, and concessions apply to each category. It is advisable to seek professional advice from a tax specialist to ensure compliance and take advantage of concessions that may be available to you.
Helen Avis Of Specialist Mortgage Demystifies Non-Confirming Home Loans In Australia.
What Is A Non-Conforming Home Loan?
Non-conforming loans, also known as specialist or non-standard loans, are designed to provide financing options for individuals who may not meet the strict criteria of traditional Australian lending institutions. These loans cater to borrowers with unique circumstances, such as self-employed individuals, those with poor credit history, or individuals with irregular income, or overseas property investors such as Australian expatriates or foreign buyers.
Are There Additional Eligibility Criteria For Non-Standard Loans?
Eligibility criteria may vary among lenders, but generally, borrowers should be prepared to provide additional documentation and meet certain requirements. This may include providing bank statements, business financials (for self-employed individuals), proof of income, and evidence of a steady employment history. Lenders offering non-conforming loans consider the borrower’s overall financial situation, including income, assets, and liabilities, to assess repayment capacity.
Are There Higher Fees And Rates For Non-Conforming Home Loans?
These types of loans typically come with higher interest rates compared to standard loans. Lenders offset the increased risk associated with lending to borrowers who don’t meet traditional criteria by charging higher rates. Borrowers may encounter higher fees, including application fees, valuation fees, and lender’s mortgage insurance (LMI) fees if the loan-to-value ratio (LVR) exceeds a certain threshold.
The loan-to-value ratio represents the proportion of the property’s value that the lender is willing to finance. Non-conforming loans may have a lower maximum LVR compared to traditional loans. Borrowers may need to provide a larger deposit or have a higher level of equity in the property they wish to purchase. Limited LVRs help mitigate the lender’s risk and provide a level of security.
Do Non-Conforming Home Loans Have Any benefits?
Non-conforming loans often offer flexible features to cater to the unique circumstances of borrowers. These features may include options for interest-only repayments, extended loan terms, and the ability to make additional repayments. Borrowers should carefully consider the loan features and assess whether they align with their financial goals and repayment capacity.
How Do I Secure A Non-Standard Home Loan?
A mortgage broker may be your best option when looking for non-conforming loans, as they have knowledge of lenders who may approve your finance and understand how they assess your mortgage application. Working with a mortgage broker can also help borrowers access a wide range of non-conforming loan options and help you assess each product offering along with the advantages and disadvantages of them. Helen Avis and the team at Specialist Mortgage are here to help if and when you need to apply for an Australian home loan.
Specialist Mortgage Is Here To Help
Given the complexity and unique nature of non-conforming loans, seeking professional advice from mortgage brokers or financial advisors is highly recommended. They can provide guidance on the available options, assess eligibility, compare loan terms and interest rates, and assist in navigating the application process. Understanding the eligibility requirements, higher interest rates and fees, limited LVRs, flexible loan features, and the role of specialist lenders is crucial when considering a non-conforming loan. Seeking this expertise can help borrowers make informed decisions and secure the most suitable non-conforming loan for their individual circumstances.
For an obligation free chat about your personal circumstances, Aussie home loans or expat home loans contact Helen Avis and Specialist Mortgage today.
20th Annual Australian Budget Review 2024
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!
Your 2024 Guide
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.
Your 2024 Comprehensive Guide To Off-the-Plan Finance For Australian Expatriates
Investing in off-the-plan properties can be an attractive option for Australian expatriates looking to secure a foothold in the Australian property market. However, navigating the finance landscape for such investments can be complex. Here’s what you need to know if you’re looking to invest in Australian Property as an Aussie expat and seeking finance for off-the-plan properties.
Understanding Off-the-Plan Finance for Australian properties
Off-the-plan finance refers to financing arrangements tailored specifically for properties that have yet to be constructed or completed. As an expatriate, it’s crucial to understand the unique financing challenges and opportunities associated with these types of investments.
Current Finance Landscape For Expatriates
In recent years, there have been significant changes in the finance landscape for Australian expatriates. Lenders have become more cautious due to regulatory changes and increased scrutiny on overseas income. Expats may encounter stricter lending criteria compared to resident borrowers.
Challenges Faced By Expatriate Borrowers
One of the main challenges faced by expatriate borrowers is proving income stability and affordability. Lenders may require additional documentation, such as employment contracts, tax returns, and bank statements, to verify income sources and assess repayment capacity. Moreover, fluctuations in foreign exchange rates can impact borrowing capacity and loan affordability.
Strategies To Overcome Financing Challenges
Aussie expatriates can employ various strategies, including:
Building a Strong Financial Profile
Maintaining a healthy credit history, saving for a larger deposit, and reducing debt can strengthen your financial profile and improve your chances of securing favourable financing terms.
Partnering with Specialist Mortgage Brokers
Engaging the services of experienced mortgage brokers who specialise in expatriate finance can provide invaluable support and access to a wide range of lenders. These brokers understand the unique needs of expatriate borrowers and can tailor solutions to suit individual circumstances.
Exploring Alternative Financing Options
Expatriates may explore alternative financing options, such as non-bank lenders or international banks with a presence in Australia. These institutions may offer more flexible lending criteria and competitive interest rates tailored to expatriate borrowers.
Seeking Professional Advice
Seeking advice from financial advisors, tax specialists, and legal professionals can help expatriates navigate the complexities of off-the-plan finance and ensure compliance with regulatory requirements.
Securing finance for off-the-plan properties as an Australian expatriate requires careful consideration of the current finance landscape, potential challenges, and available strategies. By staying informed, seeking expert advice, and partnering with specialist mortgage brokers, expatriates can overcome financing hurdles and successfully invest in off-the-plan properties in Australia.
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.
