Hi jayr_gwaps

For potential home owners or investors who are on a 457 VISA there are some good options for you as per the above posts there are competitive rates out there. 457 VISA applicants we regard as excellent clients as they are sponsored from overseas to Australia by a employer usually with a skill set which is in demand there is usually a fast track process into becoming PR once you have been in Australia for 2 years. A lot of people in the engineering, IT or medico field.

There are two major banks in Australia who will assist with up to a 90% lend for applicants who are in their first 3 years of their 4 year visa. You will need to obtain FIRB approval as well which is quite simple and done online.

This helps when you have  funds overseas which you do not want to bring into Australia due to the high exchange rate. Main thing you need to come up with is 10% deposit + Lenders Mortgage Insurance + Stamp Duty for the purchase of your property.

You are able to setup a trust for this purchase by speaking with your accountant, the type of trust is best discussed with them to suit your ideal situation. A lot of people in the Medico field have a trust setup even if they are on a 457 Visa status.

Appreciate the responses i have today learned about SDT’s, good place to educate myself better.

I think we all missed that point, good response.

Small world

Hahahah i see i am already becoming infamous.

I most definitely agree with Richard and Jamie, if you are a first home owner then definitely use the government grant to your advantage. When you have built up enough equity and then you can leverage into your next property.

Like Richard i too don’t see an issue of buying a PPR, obtain the grants, satisfy the Grant conditions that you must reside in the security for 6 months then move back home and rent the property out. This is how i got started with my portfolio.

Adiskay i am not sure what state you are in, another option that can be done is purchasing a investment property in a trust structure where you name is not listed on the lands title office (common in NSW) so your First Home Grant is still in tact as your personal name will never have been listed as owning a property. This path means that you must have funds for stamp duty and not receive the First Home Grant. This was a handy tool when stamp duty was waived for under $500K purchases and i was investing in smaller securities.

Jamie and Richard i am the new kid on the block apologies if i have treaded on anyone feet.

Hi mate,

I agree strongly with Jamie and NHG. Also congrats on what you accomplished at your age. I too am also in your situation not sure if my next purchase should be my home or another investment project. I cannot justify paying my own mortgage when i can potentially knock it down and build something.

A Investment security is always going to be a rational and logical decision as money is to be made. What keeps me going with all the investments and the construction of small developments is to build up enough funds for that place you want to reside emotionally my Penthouse in Sydney City. I guess what i am saying is go hard with the investments until you get the place that you are completely satisfied with and deserved.

In response to your questions, a PPR should be sought after if your life situation is ready, or you want to settle down, if not stay home and keep investing and make more cash. Off the plan purchases are a double edge sword, please do your research regarding the area and how you feel the market will go in 2 years. If you exchange now on $350K and 2 years down the property prices drop you will be stuck on that contract price with a security worth less meaning you will have to shell out the difference from your own pocket. Please refer to our webpage http://www.homeloanexperts.com.au/property-types/off-the-plan-units/

Regarding what to look for in a PPR i believe you have named everything required, the only other thing is to find out the boom trends, of course if you have found area that has not boomed then this is a good choice. I believe also if your in the building game land and construction is going to be the best choice.

Hope this helps

Hahahaha third time lucky. Appreciate your help.

Agreed with Richard, sub division first then proceeding to do a valuation is important, many banks if the land is not subdivided will take the current land value and add the building figures on top, meaning a lower valuation.

For example, a 600 sqm block is worth $300,000, but sub divided would mean 2 blocks each being $200,000. If we are building a duplex of $200,000 each this would mean when sub divided each duplex would be $400,000 each. If they were not sub divided then the bank would take the single land value which would mean a $700,000 valuation.

This has hurt a lot of potential investors as they require equity to obtain more funds for construction.

Hi Firewater,

Godhav has advised to join up and give as much information as i can with for other potential home owners who are on a 457 VISA.
457 VISA applicants we regard as excellent clients as they are sponsored from overseas to Australia by a employer usually with a skill set which is in demand. A lot of people in the engineering, IT or medico field.

We have made agreements with two major banks in Australia who will assist with up to a 90% lend for applicants who are in their first 3 years of their 4 year visa. We specialise in these kind of applicants and obtain the same rates as would a Australia citizen.

You will need to obtain FIRB approval as well which is quite simple.