Can someone give me a lesson on Australian real estate?

[motorcity]

I am a U.S. citizen looking to buy a home in Sydney while my wife works there for a few years. On a side note, we'd like to find as big of a fixer upper as possible.

My general question is, what is the typical process for buying a home there? Specifically, I don't know anything about auctions or buyer's agents, since that seems to be less common in the U.S.

I know that, as a foreigner, I need to get permission to buy a home. It also looks like it is more challenging for foreigners to buy a pre-owned home. Hopefully our chances will be better since we are looking to renovate a dilapidated house.

We will be over there in a few weeks, and I have been searching for a "Australian Real Estate 101" website with no luck. It seems a bit different than the U.S., so I am trying to learn the differences.

[Esra Star]

1. I don't think there will be a great difficulty being able to buy

from a legal standpoint. Housing is a bit rare though.
Firstly will your wife be working in one place?
If so where is that?

[anakie]

2. check out

realestate.com.au

Peace

[Violet_Crumble]

3. Buyer's agents...

They sound really handy if yr looking at buying property in an area yr not familiar with or buying at auction. If yr wife is working in the CBD you'd want to buy something as close to her work as you can afford, so a buying agent can help out with that sort of stuff as well...

http://www.realestate.com.au/cgi-bin/rsearch?a=v&t=as-bag&id=659

Have you found the Foreign Investment Review Board site yet?

http://www.firb.gov.au/content/default.asp

Also, I don't know what tax implications there are when it comes to the purchasing and sale of property for foreigners, but it'd be worth having a look around the Tax Office site or even talking to a tax agent.

http://www.ato.gov.au/individuals/pathway.asp?pc=001/002/012&mfp=001&mnu=29565#001_002_012

I've been looking at selling up and buying another house and after going to a few auctions to see how they work, there's just too much pressure and I'm going to avoid them. If you do decide to buy a house through an auction here's some info on how it works...

http://www.fairtrading.nsw.gov.au/realestaterenting/buyingselling/buyingatauction.html

[Bear down under]

4. You shouldn't have much trouble

I have several American friends who have bought their own homes here, and they don't seem to have faced any particular restrictions. They are on permament residency visas, however, and that apparently makes a difference -- as does the fact that they bought the places to live in and not just for investment. As you will be living and working here for several years you should check just what sort of visa you have and discuss the matter with your local Australian consulate or the embassy in Washington.

You say you want to buy a fixer-upper. Fine, but don't let yourself be misled by that term 'dilapidated' and the priveliges given to the buyers of dilapidated property. I think you may find that it means in law that the place is uninhabitable and you won't be allowed to live in it until it has been made so, which can be a long drawn out process what with Council approvals and so on. A place that merely needs fixing up to make it nice may not count. Again, talk to the consulate before you leave and to a couple of reputable real-estate agents when you arrive.

I would advise you not to be too hasty in all this. Sydney is a big, sprawling (and very expensive) city, and you'd be wise to rent a place handy to where your wife is working for six months or so while you take a look around and decide which area you'd like and can afford. Talk to real estate agents and to the local councils.

Don't be too optimistic about finding bargains, either, especially in the inner suburbs. Gentrification has been going on for 40 years now and the very few real 'fixer-uppers' left are much sought after by people who don't want to have to undo their predecessor's renovations.

As for buying at auctions, yes, you can sometimes buy at a good price -- but beware of auction fever and be aware that if your bid is accepted you are irrevocably committed to buy.

[Djinn]

5. as long as you're legally entitled to reside

which presumably you are if your wife is going to be working then I'm pretty sure there's no restrictions on foreigners buying homes. I know plenty of people including my parents who've done it, also can't see any reason why there'd be a difference between buying a pre-owned home.

Most homes are sold by auction (in Victoria and I think NSW is the same) which really only benefits the real estate agent but for some reason no-one has worked that out yet.

I wouldn't recommend a buyers agent, they just take more money, just study the market a bit (www.realestate.com.au as mentioned by someone else is good) so you know what the going rate is, work out what you can afford and bid yourself.

Spend the money on getting a builders inspection prior to bidding.

http://www.jenman.com.au/BS_S_Guarantee.php might be helpful also

Good luck and enjoy Oz even if it is foul smelling Sydney :P

[Tanya Crane]

6. Real estate

First step is to find a good real estate agent He should be a reliable and a reputed one.He can give you complete guidance on the real estate deals.Visit www.m3reo.com

[canetoad]

7. Did you join DU just to post a link

to a dodgy investment company?

This link ("Building Wealth for Investors through Foreclosed Real Estate Investing") has absolutely nothing to do with real estate in Australia, is not a 'reliable or reputed' real estate agent and is not in Australia.