Buying A House In Australia When Moving From New Zealand

 

There are numerous New Zealand citizens that buy property in Australia every single year. While there are some restrictions in place, the truth is that the process is pretty straightforward.

Basically, if you are not a resident and you are moving to Australia from NZ, you need to be approved by the FIRB (ForeignInvestment Review Board). The house that you purchase has to be a primary residence. When you do not want to live in the country full-time, you have to purchase new-build properties.

Obviously, since you are reading these paragraphs, you are moving to Australia from New Zealand so we do not have to worry about property investments. With this in mind, here is what you have to know about the subject.

Australian Property Market Basics

The official word on the streets is that the housing market in Australia is broken, weak, and that prices are going down. This means it is the best possible time to buy a house.

In order to showcase the current prices, here are some median prices for 2019. Keep in mind that these prices are lower right now and that around the end of 2020, property markets are expected to go down more, especially in Melbourne and Sydney.

·         Sydney - $1,027,962 median house price

·         Melbourne - $809,468 median house price

·         Adelaide - $542,474 median house price

·         Perth - $529,997 median house price

·         Canberra - $722,440 median house price

As you can see, prices are pretty high so you need to conduct good research. When it comes to looking for comparative sales information, just check out the APM’sHome Price Guide.

A very important thing to know is that NZ citizens are considered permanent residents in Australia. This means that you are eligible for the First Home Owners Grant and it is much easier to move from New Zealand. You do not really need to deal with customs clearance or other things like that and you can actually take all the excess baggage you want while easily finding movers to Australia to help you out.

Getting A Mortgage

The mortgage system in Australia is very similar to the one in New Zealand. You have to figure out how much can be borrowed based on expenses and income. A deposit of around 10% is necessary and stamp duty has to be paid. This will cost a few thousands, based on the state that you live in.

There are numerous deals available from various borrowers. You thus need to conduct research. Always contact the lenders and be proactive since you need to know what deals are offered. Sometimes you can see promotions you can take advantage of, giving you extras like zero establishment fees or lower interest rates.

Speaking about credit ratings, Australian financial institutions can easily check your New Zealand credit rating. To calculate stamp duty, use thiscalculator.

CGT (Capital Gains Tax)

When you own assets overseas, Australia tax has to be paid as the assets are sold. This is why you always have to keep the appropriate records. When the overseas asset was acquired before becoming a resident of Australia, you need to have obtained the asset when you turned into a resident.

If you stop being a resident in Australia and you hold overseas assets, you need to have disposed of it when the residency status stopped. Basically, you have to be a resident when you own real estate property and you can stop being one when you sell the asset.

All this leads to paying CGT when the property is sold. Temporary residences can be created for New Zealand citizens through the services of registered accountants.