Buying property in Australia

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  1. #1

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    Buying property in Australia

    Hi All,

    I plan to buy a property in Australia.
    Most of my finances are in HKD right now.
    I live and work in Hong Kong.

    Any tips?

    thanks!
    -rob.


  2. #2

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    Hi Rob. When you talk of buying a property in Australia, what kind of tips are you looking for? Is the property only as an investment? Is this for you to move into? Are you looking for certain facilities? Any certain cultural trade marks for that area?

    If only for investment, I heard that the iron industry in Perth is causing many people to move over there (I might be out-of-date with my information, I don't keep that up-to-date, but I can find out if I know exactly what you are looking for).


  3. #3

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    Hi Dean, thanks for the reply.
    Actually, I'm just looking for details on the logistics of making it happen.
    I will continue to live in HKG, but I'm looking to see how I go about getting a loan, what's the best way to set it up etc etc.
    cheers
    -rob


  4. #4

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    Banks in Australia are MUCH more conservative when it comes to lending money than some other countries. If you want a mortgage, therefore, then this might be an issue. When I moved to Aus from the UK, for example, as a reasonably well-off person, the first bank I tried said something like "you need to have an account with us for several years before we give you a mortgage" - which was like "huh"? As I already had a couple of properties in the UK and did not expect to be treated like this!

    Luckily I found a better bank pretty quickly ... but beware.

    I would open an Aussie bank account pretty quickly if I were you - for example, if you are HSBC Premier, I would open an Aussie Premier account and I expect that will help no end on the financial side.

    On the property side, DO NOT under any circumstances go for any of the offers you see advertised on the TV in Hong Kong. They are akin to timeshare in the rip-off they entail. Basically will sell you a property in a nice place that "seems" quite cheap because you compare it to HK prices, but in actual fact, if you go to a LOCAL agent actually in the places, the real prices would be substantially less again. This is a well known scam targetted at overseas investors - in Queensland in particular. So, always GO and look at the property you are interested in, and deal with a local agent (like, one with a shop in the street) not somebody you meet overseas.

    Otherwise, property is pretty easy to understand. You go look, you make an offer, pay a deposit, do surveys etc, get a mortgage (if needed) then settle a few weeks later.

    Much of Aussie property is sold by Auction - so you might have more limited choice if this is an issue for you (I refuse to bid at auctions) - otherwise get some advice on how to manage auctions. They take place in the street outside the property generally.

    What else do you need to know?


  5. #5

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    Thanks for the detailed reply.
    I guess I could/should have been more precise in my original message.
    - I'm an Australian citizen, living in HK
    - I already have a HSBC AU account linked to my HSBC HK Premier account (salary goes to HK)
    - The place I'm buying is for family (already live in actually, more of a re-finance)

    I'm wondering if it's worthwhile to approach HSBC in HK for the mortgage instead of HSBC (or another) bank in Aus..

    If anyone has experience with this, then please let me know!


  6. #6

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    I wouldn't get my mortgage in HK for an AUS mortgage, just because of the currency risk, but if you are happy with the currency risk (for example, because you are earning in HKD) then I guess it might be an idea. I'm not sure if it is possible - I always had to get my mortgages from the country where the property was located (had three in the past - UK, Aus, NZ), but have no experience of HK because we didnt need a mortgage for the boat.

    Your situation sound fine - so I doubt you will have any problems with getting a mortgage. Refinancing relatives is always dicey but that's your problem - been there; done that; won't repeat the exercise! (My experience was 'just' a car, but it was an expensive learning exercise in the inability to enforce a contract on a relative if you wish to have a peaceful life!)


  7. #7

    At the expense of what in Australia such expensive property?


  8. #8

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    Quote Originally Posted by lastexplosion:
    At the expense of what in Australia such expensive property?
    Huh? What's the question?

  9. #9
    Quote Originally Posted by MovingIn07:
    Huh? What's the question?
    Rhetorical question

  10. #10

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    I think the point MovingIn was making was that your post doesn't seem to make any sense... perhaps you could clarify?


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