If you’re a UK citizen looking to buy property in Australia, or an Australian national looking to invest in a UK home, there are a few things you should know before getting started.
You’ll probably discover that the rules and procedures involved vary significantly and that things can get a little messy if you don’t do your homework. Property Solvers, experts in selling homes fast, have put together this useful article to help you avoid big mistakes.
So, what are some of the distinctions between buying a property in the United Kingdom and buying one in Australia?
The Real Estate Market:
Over the past decade, Australia’s housing market has grown significantly, with some cities, such as Melbourne and Sydney, seeing rises in property prices of 90 to 105 percent since 2009.
Although rates in these big cities are starting to level off, prices in areas like Hobart, Canberra, and Perth are continuing to climb, making now an excellent time to invest there if you want to make a substantial profit.
The United Kingdom, on the other hand, is recovering from the diplomatic instability surrounding Brexit. The housing market has been slow since Britain voted to leave the European Union in 2016.
However, since the important general election in December 2019, purchases have been speeding up significantly, so it’s worth jumping on the ladder there as soon as possible in case of a surge.
Status of Residency:
It’s no secret that Australia’s visa and residency regulations are strict. As a non-resident of Australia, though, you can buy a property – with or without the help of a mortgage or loan.
To do so, you must first obtain permission from the Foreign Investment Review Board, also known as the FIRB. You can invest in an existing house if you want to move in the home you’re buying as your primary residence.
Non-residents may find it marginally easier to purchase property in the United Kingdom, although this may change based on the result of their exit from the European Union.
Process:
The procedures for Buying a Property in the United Kingdom and Australia are somewhat different. We’ll compare them in the following section.
Search Independently:
Australia, like the United States, allows investors to employ a realtor or real estate agent to assist them in their land search and eventual acquisition. Would-be homeowners in Australia, on the other hand, should look at themselves.
House hunters in the United Kingdom must look for properties on their own, either online or with an estate agent. They will make a bid to the local estate agent, who will speak with the seller on their behalf until they’ve located the right house.
Pre-approval:
In whichever country you want, you’ll need to either have the funds on hand or have pre-approval for your mortgage. As previously said, this point varies significantly between the territories.
Legal Assistance:
Both procedures require the hiring of a solicitor, who can consult with the seller’s legal representative on their behalf. They would frequently conduct numerous surveys and inspections.
For buying a property in Australia, these surveys are often conducted before an offer is offered, while in the UK, they are often conducted after this point – though it is known that the offer would be conditional on the outcome of the reviews.
Making Proposal:
In Australia and the United Kingdom, the “type” of bid you may make differs. In most cases, UK buyers make a verbal bid, which the vendor either accepts or rejects.
The buyer may make an offer that is cheaper than the initial selling price, which the seller may approve if they do not expect a better offer. They can even refuse it if the price is too low, in which case the buyer may counter with a higher bid.
If the buyer is aware that the property is in high demand, they will make a bid that is higher than the original asking price right away.
However, it’s normal for your solicitor to prepare a sales report, which includes information about the home, its location, the selling price, the bid, and the deposit you’ll be paying. After that, you’ll have to wait for it to be approved.
If you’re paying in full, you’ll need to set down a deposit – normally about 10% of the property’s selling price – until the bid is accepted.
Communication, Seasons, and Time Zones:
It’s important to remember that the seasons in the UK and Australia are diametrically opposed due to their geographical locations.
Spring occurs in March, April, and May in the northern hemisphere, summer in June, July, and August, fall in September, October, and November, and winter in December, January, and February in the southern hemisphere.
