If you are considering buying a home, or moving to Australia, then you will probably want to read this.. It covers in detail about the important things you need to know, and do, when buying a house in Australia.

1. A Guide to Buying your First Home in Australia
Looking to buy your first home in Australia? Here are some MUST KNOW tips
that can help you on the road to success.
Source: http://www.mortgageseek.com.au/blog/
1. Australian citizenship – Legal and stature laws governing all Australian
states are very strict when it comes to property businesses. You have to get
approval from the government to buy your first home, except if you are
already an Australian citizen, or a foreign expatriate holding a resident visa,
then you are exempted from all approval requirements. If you don’t fit those
requirements then you will need approval from the Foreign Investment
Review Board, which sounds scary but really it isn’t, they are simply seeking
to ensure that new investment from non-residents/citizens is channeled into
increasing the supply of property in Australia, so effectively you need to build
a new home, or redevelop an old one and increase the home supply, or buy
in a new development.
2. Eligibility for Home Owner’s Grant – Introduced by the Australian Federal
government in 2000 and governed by the respective state governments,

2. there is a lump-sum one-off payment available to qualified first time home
buyers. The size of the grant differs state by state and by whether you are
purchasing a new or existing dwelling. Although it might not be sufficient
enough to buy an expensive property, it is a good start kick-start. Please be
aware that the grant is only applicable to properties, not land purchases.
More about The First Home Owners Grant
3. How much you can borrow – the real question, you need to answer, know
your allocated budget and how much you can safely borrow. Lenders have
their own independent criteria to judge the types of buyers and grant loans
based upon their incomes, salary sheets, and other criterion. Typically, this
criteria varies from lender to lender. Take advantage of pre-approval services
of many lenders so that you can get a ballpark estimate of the amount you
can borrow, and the repayment terms and conditions.
5. Understand all the costs - Once engaged in the home buying process
there’s a range of services you may need to engage and their bills can add up.
For example you” possibly need services including building inspections,
conveyancing, accountants not to mention bank fees and all kinds of taxes.
More here http://www.mortgageseek.com.au/blog/home-buyer/the-costs-
of-buying-a-new-home/
6. Know what you want and Research the property market – what are you
expecting form your home? You should have a focused idea about where,
when and why, to start with so that you don’t end up wasting your precious
time and monetary resources. You’ll probably want to answer questions like :
• How far from your work are you willing to live?
• What is the accessibility of the nearest market, schools, colleges, and
hospitals?
• Is public transport convenient and appropriate enough to travel
throughout the city for any purpose?
• How big of a home will you need? Apartment or house? Family

3. planning, how many rooms for the future?
• Closeness to recreation, parks and gardens.
And the list goes on…. At some point it’s about synchronizing your goals with
your budget and with whats available on the market. Read more:
http://www.mortgageseek.com.au/blog/2011/05/17/property-10-tips-for-
choosing-the-best-location/
6. Look for a real estate agent – Whenever you are buying your property, you
will probably use the services of a real estate agent. In cities of Melbourne &
Sydney, the service charge of a real estate agent for home buyer’s assistance
is 2% of the property value. The Real Estate Institute of Australia
(http://reia.asn.au/) provides valuable advice to home buyers like searching
real estate agents, analyzing market reports and looking at the recently
auctioned property listings. Another very useful real site website in Australia
is http://realestate.com.au
7. Property inspection – Have you inspected the property the way it deserves
to be? Make sure to visit the prospective property at various times of day and
night to measure the noise & traffic levels. You’ll need to get various
inspections done during the loan application process but you should also
satisfy yourself that there’s no surprises.
There are questions that are easier to deal with prior to purchase than after,
think of the long term. Questions such as
• What do you like & dislike about your new location?
• Does the home have all essential facilities like proper ventilation,
sewerage, garage, balcony, and laundry, etc?
• How sound is the growth history in terms of capital & investment of
your area?
• What is the likely rental income in the long run, should you wish to later
move into a second home?
• Ask for the complete history of the unit from a real estate agent with a

4. small service charge.
Good luck and happy home hunting! You can find more resources at:
http://www.mortgageseek.com.au/blog/ - Mortgage News and Information
http://reia.asn.au/ - The Real Estate Institute of Australia (REIA)
https://www.moneysmart.gov.au/ - Australian Government site for personal
finance information and guides
http://www.realestate.com.au/ - Australian real estate portal
http://www.yourmortgage.com.au/ - Australian Mortgage information portal
http://www.canstar.com.au/ - An Australian loan comparison website