Frequently Asked Questions

FAQ Property Investment
Can I borrow money from an Australian bank to purchase an investment property?

Finance is readily available to you by Australian banks and lending institutions at the same rate and on the same terms as Australian investors.

Can I buy Property in Australia?

Yes, you can. Broadly speaking, foreign investors can buy residential real estate, which is:

1.) “Off plan” i.e., designed and approved by the relevant planning authority, (usually the local council or shire authority), where construction has not yet commenced.

2.) Under construction, but not yet completed

3.) Completed, but not yet lived in. Note: Once they have been lived in by a tenant, or owner, they cannot be legally sold to an “off shore” buyer.

Can I purchase an investment property from my country or do I need to fly over to Australia?

Yes you can purchase a property from overseas; many clients including overseas investors leave it to us to select their properties. This works very well and there has never been any problems. If you choose to fly out to inspect the properties, check out our special offers. We can organise flights, accommodations, transport, entertainment, etc. The next step is to let us know your expected arrival date and itinerary.

Do I pay tax on my investment property’s rental income?

Yes. As you earn income in Australia, you are subject to the taxation laws of this country. You also receive taxation benefits against that income because you are providing accommodation for tenants.

How do I transfer money from my country to Australia?

There are banks that specialise in transferring money around the world. If you are intending to purchase a property with overseas capital you will be, quite rightly, looking for savings. Foreign Payments offer Telegraphic Transfers and foreign drafts at individually negotiated rates and their charges are some of the most competitive in the industry. Their advisers will help you through every stage of your foreign exchange needs from sending you daily exchange rates (by e-mail), to supplying you with commission free currency for all your overseas travel.

How many properties can I buy?

As many as you wish.

How much deposit will I need and are there any other fees?

If you are buying outright i.e. paying cash, an initial 10% to 20% deposit is required, plus legal, stamp duty, loan, and purchasing costs which equate to about 5% of the property price.

Is GST Payable on the purchase on a residential property?

No, GST is not payable on the sale of an existing family home or when a private individual sells a property.

I've been looking for a property for a long time, should I now wait before buying as prices seem to have recently gone down?

If you intend to be a property ‘investor’ as opposed to a property ‘trader’ you probably should not wait any longer. A ‘trader’ buys today, and sells very quickly for a profit. A ‘investor’ on the other hand, is buying for long term rental income, capital growth and tax benefits.

As long as you pay fair market price, which can easily be determined by the level of sales activity in the project you are considering, you should still achieve sound capital and rental growth over the long term.

What is Negative gearing?

When the interest rate on the borrowed funds used to purchase an asset or make an investment is higher than the expected income yield on the investment, the practice is called negative gearing. The investor may be able to offset the loss against other taxable income.

What Title is the Property held under?

Australian property is held under Freehold Title, which is very safe and secure. When properties have a body corporate, which means there is more than one eg. High rise building, this is referred to as Group Title Freehold.

What type of property can I buy?

All Residential, some commercial & rural zoned land plus properties held under special title. Real Estate In Australia has a range of properties suitable for purchase by foreign investors.

When do I need to pay the other fees?

In Queensland, all fees are held and attended to on settlement. So if you place a deposit on a property, you have little else to pay until 1 month after the property settles, which is your first loan payment on monies borrowed. You can discuss this with our recommended lending representative.

When is it appropriate to invest in property?

Property investment has always been a popular form of investment. In fact, historically, investing in property has delivered good returns above inflation. An investment in property is an excellent way of protecting the value of your savings against inflation because it can return capital growth over the long term.

How do I pay the expenses?

The professional property management company can organise for these to be paid from your rental account or direct debit from your Australian bank account.

What are the property manager's fees for holiday letting?

If letting for holiday purposes, charges are generally 12% of all incoming rent plus $5 per month statement fee, and additional expenses such as electricity bill, linen hire, etc.

What are the property manager's fees for permanent letting?

Property managers in Queensland generally charge 8% plus 10% GST and the first week’s rental. There is also a $5 per month statement fee.

What if my property won't rent?

It is impossible not to rent a property… big statement but it’s true. If the rental amount is right, it will rent. Be flexible in your rents and consider the condition of that property. Also take into account the variation to tax benefits received or paid. Insurance and safety net planning gives you total control and security.

There are over 6,000,000 tenants and this number is growing everyday but only 6% of Australian’s own investment properties. People live with other people not because they want to but because they have to.

Who will look after my investment property?

To make your property investment a profitable one, you need the right team working for you. We will recommend an experienced property management company that are more than happy to take care of you and your investment property for life.

Do I pay Income Tax?

Yes – but only after all tax deductions have been applied.

Do I really need an accountant?

It’s so important to have the right accountant. It’s best if they understand property investment and everything involved with it plus own property themselves.

They can help you greatly if you tell them what your plans is as most accountant’s work on the past, not the future. Specialist accountants are worth their weight in gold.

How do I find an accountant, and how will I know if they are the right one?

We can refer an accountant that is suitable for you.

How much do they charge?

This will vary on amount work required.

Can I borrow money from an Australian bank to purchase an investment property?
How do I arrange Finance?

We utilise specialist finance groups who have many loan products to offer through banks and other lending institutions. Access to the right loans is vital.

Their service is excellent and they will save you many hours of going around all the banks including your own and taking out the wrong loan offered or sold to you.

How much deposit do I need?

Generally 30%, but once you own property in Australia, your equity in your properties can be utilised to buy without a deposit plus all purchasing fees.

When should I arrange Finance?

Finance should be the first thing arranged before anything else. Then the remaining of the transaction runs smoothly. There are very special loans for mortgage elimination and true revolving lines of credit. These need to be administered and are very effective if done correctly.

Am I entitled to a cooling off period, if so for how long?

Yes, the Queensland Government provides all Buyers of residential property in Queensland with a compulsory five business day cooling-off period. During this period the Buyer is fully legally entitled to cancel the Contract of Sale for no other reason than the mere fact that he has changed his mind.

When does the cooling off period start?

The cooling-off period commences the day the Contact is signed by the Seller/Developer and received.

When I purchased an investment property in Queensland, do I need a Queensland Solicitor?

Yes, if you do not know a Queensland solicitor, we can recommend solicitors who are experienced in dealing with investors and also financial groups, ensuring smooth and easy transactions.

For overseas buyers with FIRB (Foreign Investment Review Board) requirements, you can be assured these solicitors are also experts in dealing with your situation.

Who keeps the interest earned on my deposit money?

Whether the interest received on the investment or the deposit monies is to be received wholly by the Buyer or shared equally with the Seller/Developer will depend upon the specific terms and conditions of the relevant Contact of Sale.

Real Estate in Australia Pty Ltd
Established in 1999 – We are an international team of property experts, dedicated to helping families and investors purchase hand-picked Australian properties. We specialise in Gold Coast & Brisbane Real Estate. Our head office is located at 54 Peach Drive, Robina Queensland 4226 ABN 88 158 415 911 ©2017
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