How do I make an offer for my first property

Buying your first property can be both exciting and intimidating, especially in a foreign system like Australia's. Making a successful offer involves more than just stating a price; it requires understanding the process, the market, and your financial position. In this guide, I’ll walk you through everything you need to know, based on my 20+ years helping international buyers and first-time Australians secure their dream homes.

Understanding the Australian Property Market

Before making an offer, get familiar with the current market conditions. Are prices rising or cooling? What are comparable properties selling for? Local agents and online listings provide valuable data. Remember, a competitive offer reflects both market conditions and your genuine interest.

Preparing Your Financial Foundation

First, get your paperwork in order. Lenders and agents will want to see:

• Proof of identity (passport, driver’s license)
• Evidence of funds (bank statements, savings accounts)
• Pre-approval for a mortgage (if financing)

If you're using overseas savings, you might need to convert currencies and verify source of funds. Australian banks often require a minimum deposit of 5-20% of the property price. For first-time buyers, a 20% deposit helps avoid Lenders Mortgage Insurance (LMI), which can add thousands to your costs.

Deposit and Funding Options

• Own savings: Funds transferred from your overseas account, converted into AUD.
• Family assistance: Gifted deposits, but ensure proper documentation.
• Foreign income: Income earned abroad can sometimes qualify for mortgage approval, depending on lender policies.

Tip: Always confirm with your lender about acceptable sources of deposit funds. Some banks require a clear trail for overseas transfers.

Understanding the Offer Process

In Australia, the typical process involves:

1. Expressing interest through an agent or seller directly.
2. Submitting a formal written offer, including proposed price and conditions.
3. The seller reviews offers and may accept, reject, or negotiate.
4. If accepted, proceed to contract signing and deposit payment.

Key point: An offer is often "subject to" conditions like building inspections, finance approval, or valuation. These protect you and give room to renegotiate or withdraw if needed.

Making a Competitive Offer

Here are practical tips:

• Start with comparable sales data. For example, if similar properties sell for AUD 600,000, your offer might be AUD 580,000—unless the property is unique or highly desirable.

• Be realistic yet confident. Overly low offers may offend sellers, while too high could mean overpaying.

• Include conditions to protect yourself. Common conditions include:

  • Finance approval (usually 14-21 days)
  • Building and pest inspections
  • Satisfactory valuation

• Be prepared to negotiate. Sellers often expect some back-and-forth.

Handling Conditions and Timelines

Set clear deadlines for each step:

• Offer valid for 48-72 hours.
• Settlement date typically 30-90 days after contract signing.
• Finance condition window of 14-21 days—use this time to secure your loan.

Note: Always ask your solicitor or conveyancer to review the contract before signing. They ensure all conditions and legal obligations are clear.

Navigating Foreign Investment Rules

If you're not a citizen or resident, the Foreign Investment Review Board (FIRB) approval is required before buying. The process usually takes 4-6 weeks. You must:

• Apply online via FIRB.
• Pay applicable fees (around AUD 5,000+ depending on property value).
• Obtain approval before settlement.

Failing to get FIRB approval can result in penalties or loss of property rights.

Tips for International Buyers

• Convert funds early. Start the currency exchange process well in advance.
• Understand visa requirements. You generally need a valid visa to buy property—most non-citizens can only purchase new developments or established properties under strict rules.
• Work with experienced professionals. A licensed real estate agent, solicitor, and mortgage broker familiar with international clients will ease the journey.

Quote: "In my 20+ years helping migrants secure mortgages, I've seen firsthand how preparation and understanding set successful buyers apart." – [Your Name], Australian Property Advisor

Final Checks Before Making an Offer

• Confirm your finances are settled and pre-approval is in place.
• Collect all necessary documentation.
• Conduct or arrange for building and pest inspections.
• Review property reports and disclosures.

Conclusion

Making your first property offer in Australia should be a well-informed, confident step. Understand the market, get your finances in order, and work with professionals. Remember, each step brings you closer to owning your dream home.

With careful planning and an understanding of the process, you'll be navigating Australian property negotiations with confidence. Good luck!