Many Australian expats do want to return home at some time in the future so the idea of buying a property back home for this return is something many expats only dream of.  Others are planning on living abroad for a longer duration but see Australia as having strong rental returns and a very stable property market generally free from the volatility that has been seen around the world in the past 2-3 years. 

If you think you would like buy a property back in Australia either as somewhere to move in when you return home or just a sound investment, then here is a step by step guide for the first time Australian Expat purchaser.

 We will guide you through the process every step of the way. This guide is designed to merely give you an outline of the overall picture.

Once you have made your decision that you want to invest in property in Australia the first step is to arrange a pre-approval to confirm that the bank is willing to lend you the funds once you find a suitable property.

A pre-approval is free and once you have one you can start making offers on property with confidence knowing that most of the paperwork is out of the way. More information on pre-approvals here.

Once you are pre-approved the next step is to find that property to invest in. Most Australian expats will look to purchase where they grew up or close to family and friends so will know the area reasonably well. Then using Domain.com.au and Realestate.com.au will make a shortlist of properties they are interested in and then take a holiday back home to find and negotiate on a property.

There are also buyers agents and house and land packages or brand new apartments which can be a good option if you are not comfortable buying site unseen or cannot arrange a trip back home. MAP can assist with referrals here as required.

It is now time to make an offer. This is always a tricky time as there are no hard and fast rules about what an offer should be. Some commentators say that 10% off the list price is standard but really it is very much case by case. Certainly there is no harm going in a little lower with a cheeky offer as the worst the vendor can do is say no and then you can bump your offer up a bit. Remember, you can always increase your offer but it is hard to reduce it.

One thing to consider when making an offer is how long the property been on the market for. If it has only been on the market for a week or two then the vendor is probably going to be reluctant to knock much off the price. If the property has been on the market though for some time there may be an opportunity to get a bargain.

Advise MAP that you have agreed on a property to buy and have the contract forwarded to our office by the real estate agent. This is now the time also to appoint a conveyancer/solicitor who will handle the legalities for your purchase and arrange a building and pest report (in some states you need to arrange the building and pest report yourself but this is easy). Building insurance may also be required depending on the type of property and State in Australia.

It is important not to sign the contract or exchange contracts unless it is subject to finance or has a cooling off period.  The rules here do differ slightly from state to state so we along with your conveyancer will guide you here as to what to do and what not to do. Remember though, if you sign an unconditional contract or exchange contracts without having your finance fully and formally approved it is very difficult to back out of the contract so make sure you seek advice before doing so.

Once MAP has received a copy of the contract we will arrange for the bank to conduct the valuations and do their final checks. Once we have formal approval from the bank you are free to exchange contracts or go unconditional on a conditional contract. Once you do this there is no turning back!

At this time, presuming you are wishing to rent the property out and there is not a current rental in place, it’s a good idea to appoint a rental management agent to find you a tenant and handle the day to day running of your investment property. By starting this now they can advertise for tenants early so that as soon as settlement takes place the new tenants can move straight in to help pay the mortgage. Often you will find it convenient to use the real estate agency that sold the property however there is no obligation or requirement to do this.

Settlement is when the property officially becomes yours and the bank advances the loan funds. Your conveyancer handles settlement so there is nothing for you to do here. Once settlement takes place then all you need to do is get some tenants in there and make the mortgage repayments.