It seems liquidity is tight in oz land, banks are reluctant to lend to property sector.

Foreigners can only buy off plans, and stamp duty is 12.5% in Victoria and 11.2% in NSW.

And you can only sell to locals when completed.

Forget about this.

If you know what is happen in the apartment in Sydney and Melbourne you will not want to buy.

Some of the defects in Australia high rise will put Malaysian developers to shame

Got (1) Mascot Towers
https://www.news.com.au/national/nsw-act/ne...bb550953cd9b061

Got also (2) Opal Towers

and not to mention hundreds of high rise apartments that are not safe because of flammable cladding.

Also so many Ghost towers in sydney

Unless the buyer able to find another investor to take over their unit before completed. There is a risk for apartment buyer on loan side due to we can’t predict whats gonna happen in the next few years. Bank might change the rules. 🤪 Correct me if I’m wrong ya. Any 108 buyer here ?

Sunset clause is for both parties to determine the contract if OC is not obtained by the specified date, usually 3 years.
Buyers cannot just walk away once contract signed, unless developers can't deliver by sunset date.
Developers will not only have the right to forfeit deposit but also recover from buyer the price difference between original contract and finally sold.
So any buyers please note developers can came and sue you until bankrupt if they find it worthwhile to chase for the debts.
So buying for Malaysian developers can be a two edge sword, they know how to track you down.

As currently most off plan developments in Oz is at least 20% below contracted value.

Plus now with high rise apartments sinking or cracking, no sane person will want to buy high rise apartments in oz land. The cause of this problem is lack of regulation in oz building industry. Imagine developers can certify own building to get CF. What a scam.

Also, please don't be so hopefully that aust govt will loosen lending standards. It has RC on banking system recently and with all the short comings no way lending standards is going to be loosen.

its a shame....

structurely developers only give 6 yrs warranty...…..after that wash hands clean clean jor.

In my experience, nowadays, most of the big banks are either giving very little loan amounts (50% or below) or it is very strict to get a loan. This can make it very difficult for any investor to obtain a loan. That's why it's better to consult with an agent / broker to learn what are your available options, because there are alternative ways to get a fully licensed & regulated loan from Australia.

In my opinion there isn't a specific answer for this, because it depends on your assessment of the current market.

Take today for example, rates are at an all-time low as reported by the Central Bank of Australia. If you were to have fixed your interest rate at xx% when it was high, you wouldn't have been able to take advantage of the low interest rates today. https://www.theguardian.com/commentisfree/2...ow-will-they-go

However, there would have also been an equal chance that the rates would have gone higher too.

If you don't like the variability (the small changes in monthly repayments) because you'd like to be able to plan for your outgoing cashflow immediately, consider going for a fixed rate loan.

Although interest rates are expensive, there is one major benefit to managing your interest rates and incurring fees. You can use interest rates, costs to acquiring your loan, etc. towards your taxes (please consult a CPA for more info). For example: capital gains tax (CGT) - https://www.ato.gov.au/General/Capital-gains-tax/

This is somewhat true. I've done high loan amounts for clients from Singapore, Malaysia, and China and they vary depending on their personal situation. A loan is a very private matter and there are so many reasons why a loan may not be approved, but we've managed to find workarounds for them.

Our clients get between 65% - 80% depending on how much they earn vs the commitments they already have.

I've learned of many cases where the loan has caused a lot of issues for everyone!

First with the approval for loan - it isn't easy, because there are regulations that need to be complied (the Lender is worried they can't receive back their money in the event of a default - as a foreigner you're in another country which makes it difficult for them, resulting in stricter rules and higher rates).

To solve this is to speak to an agent / broker / someone who knows the loan landscape early to know more, and to speak to a financial planner to plan your financial situation.

Second hidden costs - There are costs to everything, and this should have been declared to you. As Mayday2232 mentioned, any good agent would give you a detailed breakdown of everything you will be paying for to the best of their ability.

Up above this reply, I mentioned that rates move up and down (could benefit you or work against you) and it is nearly impossible to lock in the rate so far into the future.

A suggestion could be to consider a refinance into an interest-only loan? The rates are much more attractive compared to a fixed-loan. It would still be higher compared to a variable loan, but your commitment is much lesser per month and you can concentrate on property appreciation over time.

For mid-Dec to late-Jan most of Australia is on Christmas / New Year's break. An experienced agent that focuses on foreigners would have prepared you for it. Don't forget Chinese New Year for those celebrating in February. So effectively things slow down during this period, and it is normally advised to the Developer that settlements would be difficult during this time.

is anyone interested to join a Australian Property Webminar by an avid property investor to learn how to invest, the conditions and requirements and what's involved and roi like and etc market data ?
just a headsup, the session will also include sharing some perth projects and the developer is Malaysian.

Please provide more details via PM.
I'm a PR looking to purchase a landed property in Australia.
If you have financial options for PR, please share too.

Thanks.

Pandemic huge impact on the property at Australia?

Definitely and not just Australia. When crisis happens everyone and everywhere got hit but this is the first time Australia is experiencing the hit in 90 years despite remaining resilient and strong throughout a few economic downturn. Nevertheless, the market is still strong depending on areas.

Source : https://www.google.com/amp/s/au.finance.yah...-021916540.html

Hi, I’ve pm-Ed you.

By the way I was informed also that Australian government is giving $20k to build. Such fantastic incentive from the government 😃 im so envious of that!