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Buying a property on a 489 Visa


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Hi guys,

 

Does anyone have any experience buying or building a new property on a 489 visa?  Is this at all allowed?

 

Basically, we are selling our house in SA and would like to invest the money we will get for our house, in our own property.

 

Is this at all possible?  I've heard that as long as you buy a new property, you will be fine.

At the same time I wonder how would anyone give you a 70% bond (for example) if you don't have a job waiting for you.

 

Many thanks for any advice

 

 

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5 hours ago, Justyna said:

At the same time I wonder how would anyone give you a 70% bond (for example) if you don't have a job waiting for you.

 

They won't, the banks have tightened up lending criteria since the royal banking commission.  You can read more about properties on 489 visas here: https://www.homeloanexperts.com.au/non-resident-mortgages/buying-property-in-australia-guide/

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9 hours ago, ChrisH said:

 

They won't, the banks have tightened up lending criteria since the royal banking commission.  You can read more about properties on 489 visas here: https://www.homeloanexperts.com.au/non-resident-mortgages/buying-property-in-australia-guide/

 

 

Thanks Chris!  great website!  I'll give them a call as soon as we arrive.

 

Here is a screen shot from the www.homeloanexperts.com.au, some might find useful:

 

1587711803_Screenshot2019-08-01at09_15_21.png.fdec9d6b8df1a67591bbecda572e63da.png

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@Justyna that is indeed a very handy website - but they are mortgage brokers , so the information is to get  you to use them...so take what they say with a pinch of salt, here are some considerations...

 

1) you will struggle to get  home finance if you are  not on PR (can be done but you will need a big deposit and you will be paying higher rates.

2) normal rates at the moment is  around 3 - 3.5% 

3) yes they consider self employed people, but its not easy , you need 18 months at least of proven income

4) if the banks allow you to borrow more than 80% you will pay an extra monthly cost for lenders insurance (insurance the bank takes against you not paying the debt)

5) 2 things count in new buyers favor at the moment  " First up, the RBA cut its cash rate again in July, after a cut in June, delivering 50bp of easing in just four weeks and taking the cash rate to a new record low of 1.00%.
     Second, the prudential settings have been loosened. Until recently, banks have been testing all new borrowers for their ability to service a mortgage rate of at least 7.00%. A borrower previously aiming to take the average        owner-occupier mortgage ($380k) and being tested at a 7.00% rate, could now"

 

6) don't rush buying property here , take your time, decide on the areas you like, visits lots and lots of open homes.....Work with a bank or mortgage broker and find a solution that works for you (it might be that you rent where you live , but you buy a investment property in Tasmania or Brisbane....)

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Personal opinion, rather rent for a while than be hasty to purchase a property. I know for us from SA it feels like a huge financial drain to rent at rates we are not use to. I feel sometimes you need to spend some money now to save money in the long run. What I mean by this is that a few months of rent is but a drop in the bucket in the long run compared to the financial burden you may put yourself in rushing into buying the wrong property. As many who have made the move would probably tell you, your situation and needs may change once you get here and get a better feel for the place. 

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@LM17 @frosty  Many thanks for your advice.

 

You are both so right... rushing into anything it's never a good idea.

 

We just thought that if we found a 'good property' (right area, right price...with the aim of selling it after we settle and know exactly where we want to be one day), it would feel so much better paying off weekly instalments for our own property, rather than paying 30-40 percent more per week for a rental property.

 

I'm sure it will all boil down to being at the right place at the right time and seeing what we can do, what's available etc etc...

 

I'll definitely be in touch with a detailed feedback from my 'findings' for whoever is interested by end of the year;) 

 

In the meantime, I'm busy decluttering the house and getting excited..... as we only have 85 days to 'lift off'!!! 

 

 

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