New homes for new arrivals

Orange Finance helps families arriving from overseas in need of help when it comes to working out their home ownership plans and getting a mortgage loan in Australia. Some rent for a while then buy, some jump straight in and purchase property. What’s common amongst all new arrivals is the need to know they’re making the best decisions they can for their families and their finances.

Growing population

Perth recorded a 445,00 growth in population between 2006 and 2016 according to the Australian Bureau of Statistics. In the last few years the growth rate has slowed with the slowdown in mining. Perth population as at June-2016 is estimated to be 2,022,000.

Know how the market differs

If you are looking for a new arrival home loan type, there are many issues and nuances for newcomers to get familiar with in the Australian property market. For example, if you are not a permanent resident you must get approval from the Australian Government before buying property. You’re not likely to pick up this type of information from a bank or other financial institution.

There are many factors to consider when investing in the WA homes market and it varies from individual to individual. There are things like the amount of deposit you’ll need, type of real estate you can buy, your country of origin and the insurance you’ll need to have in place. The key is knowing the opportunities to exploit and the pitfalls to avoid, which can be established by researching online or speaking to a mortgage broker with some background in this area. We specialise in new arrival home loans and have helped dozens of client’s who are new to Perth of Australia.

This is a dynamic market for the banks at the moment and we’re seeing positive signs of encouragement for buyers, with some banks relaxing the levels of deposits required.

However, there are still many other considerations such as Foreign Investment Review Board limitations and circumstances in the buyers home market. Our advice is to investigate your options with someone specialised in the area. Here are a range key considerations when seeking out your first home purchase in WA.

Top tips for home buyers in WA

1. Establish your visa type and understand what you can and can’t do in relation to property investment.

2. Get to know the local market and the fundamentals of government taxes and subsidies (eg. stamp duty and first home buyer grants)

3. Get to know the buying process: what are the steps, what paperwork do you need in place, when does your provisional offer become binding? Can you be ‘gazumped’ in the local market?

4. Get to know how insurances work. What are you obliged to take out cover for, and how does this differ from your home country. Who is obliging you?

5.Get to know the sources of lending. The options, benefits and drawbacks of each lender type.

6. Know what drives the interest rate. The reserve bank, the retail lenders, the relationship between these entities, and how’s its changing.

7.Be aware of ‘low doc’ lending. This is an option to avoid the paperwork of home buying, but comes at a price. Low doc lending has become less easy to access in Australia as it has overseas.

8. Understand how you can leverage equity built up in your property. What you can use equity for, here as opposed to overseas?

9. Understand investment properties and the tax advantages of owning one. There are so many things to know and be aware of when making a home loan commitment, and like pooling great advice from a range of friends, sourcing help from a home loans broker is like benefiting from the accumulated knowledge of hundreds of people’s experiences. Sources: * Australian Bureau of Statistics **Real Estate Institute of WA