The property buying process in Australia is relatively simple and straightforward.  Foreign investors are allowed to buy property in Australia provided the land or property for sale has been approved for "sale to overseas buyers" by the Foreign Investment Review Board. 

 

Initial searches, enquiries and offers are usually conducted through an estate agent. The conveyancing process begins once an offer has been made and accepted by the seller. At this point in time depending on whether you are in Australia or not it may be worth employing the services of an independent legal advisor who is familiar with the buying process and paperwork involved.

 

Standard contracts provided by the Law Society and the Real Estate Institute will always highlight information pertaining to the transaction including cooling off periods and payment schedules. This contract, if satisfactory will then be signed by all parties involved including the buyer, the seller and the estate agent and must be signed in front of a witness.  

 

The deposit required to secure your purchase may vary from area to area, depending on the circumstances you may be required to pay anywhere between 10 and 40%. The Estate agent will hold your deposit in a protected account until the completion date.

Legal Issues to Consider:

Contracts often contain conditional clauses. Make sure that both you the buyer and the seller are aware of the conditions of sale. Clauses will often include details about, surveys, payments, inclusions, fixtures and fittings, finance and forfeitures etc. 

 

 

Fees

 

Property fees are often calculated as a percentage of the property value.

 

Stamp duty will vary according to the price of the property, the area of purchase and the circumstances of the buyer, for example first time buyer.

 

 

Land Transfer Registration

 

This fee is for recording a change of owner at the Land Titles Office and is payable each time a property is sold. It's either a flat fee or a variable fee based on the price paid and varies from state to state. The fee on a $100,000 property, for example, is $56 in NSW (fixed fee) and around $460 in South Australia (variable fee - around $960 on a $200,000 property).

 

Legal Fees  

 

Legal fees are usually between 1 and 2 per cent of the purchase price, but may vary according to the work involved. Legal fees vary considerably from state to state, e.g. from around $550 in Adelaide, Perth and Hobart to around $1,750 in Brisbane for a property costing over $100,000. The fees in most states are within the $550 to $1,100 range.

 

Solicitor's or Conveyance's Fees

 

These are the fees for the documentation necessary for a property purchase. There isn't a fixed charge and the cost of conveyance can range from around $500 to $1,700.

 

Government Taxes

 

There are federal and state taxes on financial transactions that vary according the state or territory.

Financing a property purchase:

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Investment Potential:

The Australian property sector accelerated over the course of the last few years and has continued to accelerate despite a global slowdown as a result of credit crunches and problems experienced in the US Sub prime mortgage sector which has started to spread to other areas and countries around the globe.

 

The weighted average established homes price index for 8 Australian capital cities rose by 12.3% in December quarter 2007, better than 2006's 9.7% growth, and significantly higher than 2005's 2.3% price increase. The capital city indexes all rose in December 2007.

Sydney, the most expensive city in Australia had the highest median house price of any Australian capital city at $551,000 Aussie Dollars, as of December 2007. It may be one of the worlds most cosmopolitan and sought after cities, but Sydney is now one of the most expensive.

 

While expensive, Sydney is still a good investment as demand remains high, both on a buying front as well as on a rental front. In most cases, rental income for Sydney apartments is excellent, and has continued to increase by around 1.5% per year.

 

Australia's landlord and tenant laws are also considered to be very neutral where both parties rights are well-protected by the Residential Tenancy Act. Rents can often be freely negotiated between the Landlord and the Tennant however each State and Territory will have its own law regarding landlord and tenant relations.

 

Melbourne is the second most expensive city in Australia, followed closely by Perth in third place. Interestingly enough, house prices in Australia have continued to rise despite increases in interest rates, demand exceeding supply explains this phenomenon as the supply of residential properties remains relatively low.

Education:

Pre-school

 

Pre-school in Australia is relatively unregulated, and is not compulsory. The first exposure many Australian children have to learn with others outside of traditional parenting is day care or a parent-run playgroup. This sort of activity is not generally considered schooling. Pre-school education is separate from primary school in all states and territories except Western Australia and Queensland, where pre-school education is taught as part of the primary school system.

 

Pre-schools are usually run by local councils, community groups or private organizations except in the Northern Territory and Queensland where they are run by the Territory and State Governments respectively. Pre-school is offered to three to five year olds, although attendance numbers vary widely (from 50% in New South Wales to 93% in Victoria). The year before a child is due to attend primary school is the main year for pre-school education. This year is far more commonly attended, and usually takes the form of a few hours of activity five days a week.

 

 

School

 

School is compulsory in Australia between the ages of six and fifteen to seventeen depending on the state, with, in recent years, over three quarters of students staying on until they are eighteen.

 

Government schools educate about two thirds of Australian students, with the other third in independent schools, a proportion which is rising in many parts of Australia.

Government schools are free, while independent schools, both religious and secular, charge fees. Regardless of whether a school is government or independent, they are required to adhere to the same curriculum frameworks. Most school students, be they in government or independent school, usually wear uniforms, although there are varying expectations and some Australian schools do not require uniforms.

 

Government schools and State Schools

 

Government or state schools are run by the local state or territory government. They do not charge compulsory fees, with the majority of their costs met by the relevant government, and the rest by voluntary levies and fundraising.

 

They can be divided into two categories: open and selective. The open schools accept all students from their government defined catchment areas. Selective government schools mostly cater for academically gifted students (the top 5 percent), although there are performing arts and sports schools. Almost all selective schools are in New South Wales though a few exist in other areas.

 

Selective schools are more prestigious than open government schools, and generally achieve better results in the school-leaving exams than independent or open government schools. Entrance to selective schools is often highly competitive and they cater to a large geographical area.

 

Other schools

 

Most Catholic schools are either run by their local parish and/or by each state's Catholic Education Department.

 

Non-Catholic non-government schools (often called "Independent" schools) enroll about 14% of students. These include schools operated by religious groups and secular educational philosophies such as Montessori.

 

Some independent schools charge high fees. Government funding for independent schools often comes under criticism from the Australian Education Union and the Australian Labour Party.

Health:

The Australian healthcare system is mixed. Responsibilities for healthcare are divided between the federal and state governments, and both the public and the private sectors play a role. Australia spends about 8.5% of gross domestic product on healthcare.

 

Government programs underpin the key aspects of healthcare. Medicare, which is funded out of general tax revenue, pays for hospital and medical services. Medicare covers all Australians, pays the entire cost of treatment in a public hospital, and reimburses for visits to doctors.

 

Overall, quality of care in Australia in both the public and private sectors is comparable to other developed countries. As in the United States, there is concern about the number of adverse events that occur in hospitals. The major teaching hospitals have significant research profiles and the care is first-rate. Suburban and rural hospitals are also seen as providers of high-quality care.