Buying Tips

These are a few tips to aid in making your property purchase as easy as possible...

• Select a Property that best suits your immediate needs.
• Define the areas that you wish to live in.
• Prepare a list of your wants and must haves with regards to features of your new home. Keep in mind affordability.
• Speak with your financier/bank manager or ask Ray White Glebe Residential & Commercial Sydney for their preferred list of mortgage consultants.
• Choose a lender and obtain pre-approval.
• Research previous sales in your preferred areas and attend any auctions that may be of interest.
• When you find a property that you are interested in, always conduct more than one inspection to learn about the things you missed the first time around.
• Once you are satisfied ask the agent to send a copy of the contract to your solicitor.
• Have your solicitor arrange for a building and pest inspection.
• Once you and the seller have agreed on a price you will be required to sign a contract for sale and pay a ten percent (10%) deposit. Other terms such as the period of the contract can be negotiated.
• To avoid missing out on that one special property you can always avoid a cooling off period and secure the property by having your solicitor include in the contract for sale a Section 66W certificate that waives your right to a cooling off period.
• It is now time to notify your lender and finalise the loan documents.
• After a two (2) week period from exchange of contracts your solicitor will ask you to pay the required stamp duty. Payable within 28 days of contracts being exchanged.
• Confirm a time with your solicitor for completion and book a removalist.
• Always request a final inspection of the property with the selling agent, on the day of settlement or the day prior.
• Within a week of the settlement day arrange power and telephone connections, contents and building insurance and start to prepare a list for your change of addresses.
• Finally, collect the keys from the agent and enjoy your new home.

We at Ray White Glebe Residential & Commercial Sydney wish you the best of luck.

Buying Your First Home

First Home Owners Grant at a glance

The First Home Owner's Grant is a one-off payment of $7,000 to eligible first home buyers in Australia from 1 July 2000.

Who is eligible?

You must satisfy the following criteria to be eligible for a first home owner's grant:

• Applicants must be Australian citizens or permanent residents. For applications by couples, the Australian citizenship or residency criteria need to be met by only one of the applicants.
• Applicants must be natural persons (not a trust or a company, but trustees can apply on behalf of people with legal disabilities - such as mentally incapacitated persons).
• Applicants must intend to make the home their principal place of residence and occupy it within one year. However, in NSW at least one of the applicants must intend to make the home their principal place of residence and occupy it within one year.
• The home must be in the same State or Territory in which the application is made. Therefore if an applicant purchases a home in Queensland, application must be made to the Queensland Office of State Revenue.
• Applicants must be buying or building their first home. Applicants must have entered into a binding contract to buy or build a home or, in the case of an owner-builder, have started construction on or after 1 July 2000.
• An applicant or spouse must not have previously owned a residential property or applied for this grant. Ownership of an investment property before 1 July 2000 will exclude you from being eligible to participate in the scheme. Whereas ownership of an investment property from 1 July 2000 will not exclude you from being eligible for the grant.
• An eligible home includes new and established homes, units, and any other types of self-contained fixed dwellings approved by local councils.

How much is the grant?

The First Home Owner's Grant is a one-off payment of $7,000 to eligible first homebuyers from 1 July 2000.

The grant will not be means tested. Eligible applicants will receive the same amount regardless of the state or territory in which application is made or the value of their home or their personal wealth.

The grant may be offset against statutory levies or charges or both.

Where payment for a home is less than $7,000, the amount of grant available will be restricted to the amount of consideration paid. If no consideration is paid, for example where a home is a gift or bequest, the applicant will not be eligible for the grant.

How do you apply?

Applications for a grant must be made between the time the applicant becomes eligible and one year after the settlement date of the transaction or the date when the property can be occupied. However, the Tax Commissioner has the discretion to extend the period to lodge an application, to allow early applications or authorise the payment of a grant before the applicant becomes eligible.

Application forms should be available from 1 July 2000 from the Office of State Revenue in each state, from their websites, or from approved agents. The applicant must supply supporting documentation, including personal identification and proof of the contract.

If an application is rejected, applicants can appeal against the Commissioner's decision. An appeal must be made within 60 days after the notice of objection was received.

Applications can be made by contacting the following State and Territory Revenue Offices:

State/Territory	Phone	Website
New South Wales	02 9685 2122 1300 130 624	www.osr.nsw.gov.au/links.htm
Victoria	03 9628 6777 13 2161	www.sro.vic.gov.au
Queensland	07 3404 3956 1300 300 118	www.osr.qld.gov.au
Western Australia	1300 363 211	www.housing.wa.gov.au
South Australia	08 8226 3750	www.treasury.sa.gov.au/revenuesa
Tasmania	03 6233 3465	www.tres.tas.gov.au
Australian Capital Territory	02 6207 0029	www.revenue.act.gov.au
Northern Territory	08 8999 7949	www.nt.gov.au/ntt/revenue

This is only a general guide - not a substitute for professional advice. Ray White Real Estate does not guarantee the accuracy, reliability, or completeness of any information on this page, and will not be liable for any loss or damage suffered as a result of anyone relying on this information. We recommend you obtain advice from your own financial, taxation or legal advisor before entering into financial transactions. This information is as at 28 June 2000.

Overseas Buyers

Here at Ray White Glebe Residential & Commercial Sydney we understand the complexities and frustrations involved in purchasing property from abroad be it residential or a commercial investments. Therefore we offer the services of our highly skilled staff o help fulfill your needs.

Purchasing a property in the Sydney real estate market is a wise decision that will provide substantial capital gains over the long term. Sydney is a world-class city with a multi-cultural population of over 4 million, surrounded by beautiful water ways & a magnificent natural harbor, pristine beaches and was home to the 2000 Sydney Olympic Games.

Sydney provides investors with one of the best places to invest in real estate in the world. Australia’s economic growth rate continues to reach its target each year. A strong domestic economy, resilient to international shocks and with a stable government, provides an excellent platform for property investing.

Government Policy on Foreign Investment

The Australian Government encourages foreign investment that is consistent with community interests. The Government recognises the significant contribution that foreign investment has made and continues to make to the development of Australia. Foreign investment provides scope for higher rates of economic activity and employment than could be achieved from domestic levels of savings. Foreign direct investment also provides access to new technology, management skills and overseas markets.

The largest number of foreign investment proposals in Australia involves the purchase of real estate. The Government seeks to ensure that foreign investment in residential real estate increases the supply of residences and is not speculative in nature. The Government's foreign investment policy aims to directly increase the supply of new housing (ie, new developments - house and land, home units, townhouses, etc) and brings benefits to the local building industry and their suppliers.

Overseas / Australian Expatriate Buyers

Whether you are returning home, relocating to Sydney or looking for an investment property, Ray White Drummoyne strives to make it as painless as possible. If you are purchasing an investment property, we can also help you secure a tenant and manage your property for you.

Who does not require Government approval?

• Australian citizens, residing in Australia or abroad;
• Holders of Australian permanent resident visas;
• Persons entitled to hold a special category visa, for example, New Zealand citizens; and
• Australian citizens and their foreign spouse when purchasing residential real estate in joint names as joint tenants.

Do I need Government approval to buy real estate in Australia?

You may need to apply for foreign investment approval if you are a foreign interest who is:

• purchasing residential real estate (including established or new residential property, vacant land and hobby farms);
• purchasing rural land;
• purchasing developed commercial real estate;
• making an application for designation as an Integrated Tourism Resort or Strata Titled Hotel;
• purchasing vacant commercial real estate for development;
• acquiring shares, business assets or dealing with some other interest in an existing company;
• creating a new business or project; or
• dealing with some other form of interest.

A foreign interest is defined as:

• a natural person not ordinarily resident in Australia;
• a corporation in which a natural person not ordinarily resident in Australia or a foreign corporation holds a controlling interest;
• a corporation in which 2 or more persons, each of whom is either a natural person not ordinarily resident in Australia or a foreign corporation, hold an aggregate controlling interest;
• the trustee of a trust estate in which a natural person not ordinarily resident in Australia or a foreign corporation holds a substantial interest; or
• the trustee of a trust estate in which 2 or more persons, each of whom is either a natural person not ordinarily resident in Australia or a foreign corporation, hold an aggregate substantial interest.

What type of property can foreign investors buy?

Vacant Land
Subject to an investor commencing construction within 12 months of FIRB approval.

Second-hand dwelling
Purchases of second hand dwellings by foreign persons are restricted to temporary residents with visas (more than 12 months) or investors making the dwelling their principal place of residence.

New dwellings
Ownership is restricted to no more than 50 per cent of the dwellings in a development being sold to foreign interests. For single dwellings, a developer must have another dwelling that is similar in construction and proximity.

Commercial
Purchase of commercial property is normally approved unless it is contrary to the national interest. This is determined by the Government on a case by case basis.

Other situations where FIRB approval is normally given includes:

• Foreign companies buying residences in Australia for their senior executives
• Foreign nationals temporarily resident in Australia for more than 12 months buying for their own use as a principal place of residence subject to the sale of the property when they cease to reside in Australia.
• Foreign nationals purchasing residential real estate as joint tenant with an Australian spouse.

Further details are available on the Foreign Investment Review Board website: http://www.firb.gov.au