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Credit History in Australia (Victoria, Melbourne)


loucatpayne

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Hi All, 

 

My family and I are waiting for our 189 visa's to be granted.  Happy Days, but really nervous too.

We dont know exactly where we will be living, all ive been doing is looking at rentals, but i have heard that once you get there it might not be that easy to get a rental because we have no credit history within the country.  We are bringing across about AUS$30,000.00, and my husbands company in SA is keeping him employed and he will just work remotely from Australia.  I have no clue where to start.  What agents to contact. And then there are schools to consider for my two kids (aged 11 and 8)  I feel so flustered.  We want to leave SA around 28 December 2016.  So lots to have sorted out before then.  Can any one advise me where to start??  I was essentially looking for a furnished house, but have been advised that these are few and far between.  However, i have budgeted around 15k for home contents as we are selling up every thing in SA.

 

Thank you so much!

Louise.

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Hi Louise

Let me try and answer:

1. You need to book temporary accommodation for at least two weeks,  for your arrival. You can try www.airbnb.com or www.stayz.au but as you will be arriving in high season, it  ould be pricey. Schools only start beginning February, so perhaps better if you arrive mid January.

2. You need to have a fair idea of where you want to put your kids in school, so that you can look for a rental in that area. Government schools you have to live in the catchment area.

3. If you give an indication of what $ amount you have budgeted for your weekly rent it may be easier to point you in the right direction.

4. A lot of people settle on the east side of Melbourne, there are great schools in the are! But rents can be pretty high, depending of course on exactly where you are. Rental homes in these areas can be pretty saught after and of course that means not so easy to get. Most of these areas are well established with not much new development going on, therefore rental homes are in high demand.

5. On the west side of Melbourne the most popular su urbs are Pt Cook and Sanctuary Lakes, these would probably be more affordable than the homes on the east. As there is a lot of development going on, there is a greater supply. The only problem is traffic in peak times, as the road infrastructure did not keep up with the development of the suburbs.

6. I live in Sunbury in the north west of Melbourne. There is a lot of development happening and there are plenty modern new homes available at affordable prices, fairly easily obtainable. There are a number of primary schools, some good, some not so great, but I would suggest you make contact with "miran" on the fkrum, who is a relief school teacher in the area and she would be better equipped to advise you. There are, I think, two government high schools. There are also two Catholic primary schools and a high school, but these can be very difficult to get into.

 

I guess that is enough advice for you to get started on, and I am sure you will get plenty more from the forum members.

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Hi there Mara, 

Thank you for your reply.  i really appreciate it.  I have started with a spreadsheet on areas that have been suggested and i really fell inlove with Mornington (judging by reviews on lifestyle etc) but i know that its quite a far way from the city. Maybe you can offer some guidance.  We are looking at rentals at $500.00 a week max :)

I also know the closer to the city you are the more expensive it is, and with a strict budget we would have to be out of the city but not too far to commute.

Bentleigh

Brighton

Brunswick

Caulfield South

Chelsea

Fitzroy North

Mentone

Mornington Peninsula

Mount Eliza

Mount Martha 

Northcote

Ormond

Port Melbourne

Saint Kilda

Sandringham

Seaford

Williamstown

Rye

 

Thanks again!

 

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I would go to www.realestate.com.au and check what the rentals are in those areas, as they are all on the east, they could be pricey.  I am in Jhb visiting at present, so having to typecwith 1 finger, sheesh! I can help better in a weeks time when I get home. next week Saturday, 27th, I am meeting with a number ofpeople, who want to chat about Melbourne.  it is at 13h00, Europa, 2-10 High Street, Melrose Arch, Sandton. If do wish to attend send a PM to "smailo" as they are arranging the booking.

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I was subscribed to follow the initial question of "credit history" of newly arrived immigrants. Can anyone comment on that? I am in a similar boat and landing in January, still doing some remote work for my SA employer until I find a job in Sydney. 

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I would also like to know @vitchie:)

 

How long does it take to build up a credit rating/history in Aus and how does one go about doing that if you only have a job?

 

I can imagine buying a car on HP would also have its problems?

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Mostly, if you have a job, you should be able to get a loan, you may have to put down a bigger deposit though. Also remember, when you do your research into loans upon arrival, ask your questions,  thenvdecide which one is the best forvyou, but do not put in five applications with five different institutions. For every official credit application you make will be noted on your credit history, which, down the line, could count against you.

 

As to how long it takes to build up your credit history, quite quickly usually.

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And in the time before a person lands a job? The scenario that i am worries about is that we are staying with friends for the first month. What happens if i only get a job the minth after? Any chance of getting a rental without having a job yet? Can't stay at our friends too long with the whole family in tow. 

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It probably differs depending on demand, but we got a rental with no work and no credit history. So it is possible.

 

But we live in Belgrave and the competition is not fierce.

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Thank you @Mara & @RedPanda for the info :) 

 

We will have to cross that bridge once we get there but its good to know so thank you ;) 

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When looking at rentals on realestate.com.au, tick "surrounding areas". Many of the better suburbs have an "east" version which is just as nice but for a lot less.

 

If you are looking at government schools, many of them will have their catchment zone on their website, or are happy to email you a copy. Don't get a home too close to the edge as these catchment zones can move, but having this map can be invaluable if you are looking for a house in zone. Basically if you live in zone, the school has to take you. If you don't, they do not. It is that simple.

 

We have been in government school for the last two years and are very happy with the standard of schooling.

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  • 2 weeks later...

hi all,

Your credit history starts the day you land.  You apply for a property to rent, it is on your credit history.  You take out a phone plan, it is on your credit history.  You open a bank account, yep, its on your credit history.  So people often get the wrong idea - dont go getting a credit card to get a credit history.  If you want to buy a house, having a credit card is not an asset, especially not one with a big limit on it, they take it as if you have spent the whole limit.  May I suggest that you get a letter from your current insurance stating that you have had no claims, this will help when getting a better deal. If you are wanting to purchase a car, you only need two payslips and if you are able to service the loan, they will lend to you if you are a permanent resident.  If not, they may only do the loan on your visa term. If you are wanting to buy a house, you have said that your husband will be kept on by his current company. That may pose a problem when borrowing.  The banks used to do an 70 and 80% lend to people from South Africa who were still getting paid from these business in South Africa, now the banks have just recently changed their policies and they are no longer lending to people earning ZAR.  They will lend if you are living here and are earning here, but not if you are living here and earning there.  They will still lend to foreigners earning pounds, USD and a few other Asian currencies, but SA is no longer on the list.  They wont even do a 50% lend.  Hope this helps you.  

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Thank you kindly for the the info @Heather :) 

 

That was what i was looking for more or less so thank you for your details on how to approach things! ;)  

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  • 4 weeks later...

@Deezo, I second what @Heather advised

 

This is our personal 'credit record' experience :

 

Short term credit - my husband got our phone contracts with no 'credit history' and only a contract of employment, no actual pay earned,  when we arrived last year. Basically having no credit history is the same as having no BAD credit record. If you're a problem child, then your credit record is flagged accordingly and then only will issues creep in regarding obtaining new lines of credit.

 

Credit card  - I applied for a Coles credit card as more of a facility for earning additional Flybuys loyalty points than having a credit line, and I obtained it with fixed term contract employment, no permanent job at the time. 

 

Long term - buying a house - basically you will need 20% cash deposit to avoid lenders mortgage insurance against any shortfall of the 20%, and proof of income

 

Rent 'credit' / reference - we secured a rental soon after arrival and used character references as we had no prior rental history at all. We also obtained a written reference from our Estate Agent who sold our house back in South Africa, stating that our house was in immaculate condition and that we had been owner / occupiers. That got us into the rental we now occupy.

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Something to note - each enquiry made against your credit score will bring it down, so if you apply for 5 credit cards and they all check your credit score, then by the time you apply for the 6th, your credit score will not be looking very attractive.

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