This information should be taken as a general guide only. It is our recommendation that all prospective purchasers seek the relevant legal and financial advice prior to purchasing any property to ensure that you are fully informed about purchasing property in Australia, to reduce risk, and to avoid any unexpected costs or circumstances.
All local and foreign buyers purchasing property through 88Jade will have obligations pursuant to the 88Jade User Agreement, any executed Contract of Sale, and applicable federal, state or territory law.
88Jade is a licensed real estate agent. Buying your property online through us is no different than buying it in person. Please see our 88Jade User Guide to Buying Property Online to see our step-by-step guide to using 88Jade.
Any information contained in this guide, specifically any reference to government fees and charges associated with purchasing property in Australia, is subject to change. We do not represent that the information contained in this guide is up to date. It is your responsibility to seek your own expert legal and financial advice when purchasing property in Australia.
The purchase of property in Australia is a relatively straight forward process however it is important that as a purchaser, you have all the information you require before you commit to buying a property. Below is a general checklist of matters you should consider when purchasing new and off the plan property in Australia.
It is important that you read and understand this information fully before registering and purchasing through 88Jade.
- Are you legally allowed to buy a property in Australia? What does this mean?
- Foreign purchasers looking to buy property in Australia need to establish their eligibility to purchase before doing so. Each person will have individual circumstances that need to be considered, so it is important to seek tailored expert advice to establish your eligibility when purchasing property in Australia.
- If you aren’t sure about your personal eligibility to purchase property in Australia, you can refer to the Australian Government Foreign Investment Review Board (‘FIRB’) website at www.firb.com.au.
- Purchasing property in Australia without prior FIRB approval is not advisable under any circumstances. This may result in you having to re-sell the property and incurring extra costs.
- Do you have the full deposit amount (10% of the purchase price) in $AUD available to you?
- Typically, when you enter into a Contract of Sale you will be required to pay a deposit equivalent to 10% of the full purchase price. All property purchased through 88Jade will require this 10% deposit payable upon signing of the Contract of Sale. For example: Purchase Price: $900,000AUD x 10% = $90,000AUD deposit payable
- All properties purchased through 88Jade will be pursuant to unconditional contracts. This means that 88Jade does not accept any contracts with financial conditions such as ‘subject to finance’. It is important that you have your finances in place before you commit to purchasing a property, and that you will be able to pay the balance of the purchase price on the settlement date listed in the Contract of Sale.
- Will you be able to pay the remaining 90% of the purchase price?
- When a property development commences it can typically take between twelve to eighteen months to complete, sometimes longer.
- Once a building is complete, the titles will be issued, and you will be required to settle the contract by paying the remaining 90% of the purchase price in full.
- It is up to you to make sure you have all your financial arrangements in order before purchasing, so that you can meet this obligation. If you are unable to pay the remainder of the purchase price when it falls due, you will be in breach of your contract.
- Additional costs
- In addition to the purchase price of the property, you need to consider and allow for many other expenses.
- Other costs will include but are not limited to: legal fees, stamp duty, foreign investor taxes, insurances, owner’s corporation fees and servicing costs etc.
- The Australian Federal and various State Governments all have specific requirements and costs/taxes associated with foreign purchase of property, and these will vary depending on the type of property being purchased (residential or non-residential), the value of the property, the purchaser (foreign natural person or foreign corporation) and other details of the transaction.
- By way of example:
- The Australian Government FIRB will charge a fee of $5,500AUD per foreign investment application for residential property valued up to $1,000,000AUD. This fee will increase where the value of the land is above $1,000,000AUD. Please refer to the FIRB website for more information on the application process and fees.
- The Victorian State Government will charge land transfer duty (previously known as stamp duty) on all property purchased or acquired in Victoria (unless an exemption applies). The duty is based on the purchase price of the property. Purchase of property in Victoria attracts an additional duty where there is a foreign purchaser. As of 1 July 2016, the additional duty rate is 7%. This is subject to change, and you should confirm the additional duty rate at the time you are purchasing your property.
- The Victorian State Government also charges land tax which is calculated based on the value of land held. There is an additional charge called an absentee owner surcharge for foreign owners who do not occupy the dwelling they have purchased. You should seek specific advice in relation to the absentee owner surcharge that may be applicable to you.
We strongly advise that you ask your lawyer and/or financial representation for further clarification on these and other potential costs.
- Have you engaged the services of an Australian lawyer in the state or territory where you intend to purchase property?
- As a registered client of 88Jade you will have access to Contracts of Sale and all relevant accompanying legal documents for any property you want to buy.
- It is highly recommended that you send a copy of all the documents regarding the property you are interested in purchasing to your legal representation to be reviewed. You should not under any circumstances sign a contract without first seeking legal advice.
- After you have signed a contract and paid a deposit, you will require a lawyer or conveyancer to handle your affairs for the settlement phase of the purchase. You should engage a lawyer or conveyancer in the same state or territory the property you are purchasing is located. For example, if you are purchasing in Victoria you need a Victorian lawyer or conveyancer.
Imperium Maius Pty Ltd, 88 Jade, Imperium Maius Property Group or any subsidiary or related entity does not give any warranty, guarantee or indemnity in relation to the use of this information. It is your responsibility to seek your own expert legal and financial advice when purchasing property in Australia.