The Charm of Established Homes

An established home is a property that has been lived in and is often older than 10 years. These homes may need some updates but often come with mature gardens and character.

Advantages

• Potential for negotiation: Buyers can often negotiate a better price, especially if the property has been on the market for a while.
• Established neighborhoods: Mature areas tend to have better access to public transport, schools, shops, and community amenities.
• More predictable costs: While some upgrades may be needed, the overall property condition is known.
• Immediate availability: No waiting for construction; you can settle quickly.

Challenges

• Maintenance costs: Older homes may need repairs, renovations, or updates sooner.
• Potential for hidden issues: Problems like asbestos, old wiring, or leaky roofs may be present.
• Less energy-efficient: Older properties might have outdated insulation or appliances, leading to higher energy bills.

Practical Tips

• Inspection: Always conduct a building inspection by a qualified professional.
• Budget for repairs: Factor in renovation or maintenance costs into your budget.
• Location: Established homes are often centrally located, reducing commute times and increasing lifestyle convenience.

---

Cost Comparison: New vs Established

Purchase Price

Aspect	New Homes	Established Homes
Average price in metro areas	AUD 700,000 - 1,000,000	AUD 650,000 - 900,000
Potential for negotiation	Lower	Higher

Additional Costs

• Stamp Duty: Similar for both types, but check state-specific concessions.
• Lending costs: Loan-to-Value Ratio (LVR) up to 80-95% influences mortgage insurance costs.
• Lenders Mortgage Insurance (LMI): Required if your deposit is below 20% unless you're eligible for special exemptions.

Examples

Imagine you're eyeing a property in Sydney for AUD 900,000:

• A new build might cost AUD 950,000 but include modern warranties.
• An established home might be listed at AUD 850,000 but may require AUD 20,000–50,000 in repairs.

Navigating Australian Mortgage Lending as an International Buyer

In my 20+ years helping migrants secure mortgages, I’ve seen international clients face common hurdles:

• Proof of funds: Overseas savings transfers require legitimate documentation. Lenders often prefer funds held in Australian accounts for at least 3 months.
• Visa status: Usually, a temporary or permanent visa that grants you residency or work rights is necessary.
• Deposit sources: Gifted deposits from family are accepted if properly documented.
• Foreign Investment Review Board (FIRB) approval: Mandatory before purchasing residential property, especially for non-citizens or temporary residents.

Key Eligibility Factors

• Valid visa with what the FIRB classifies as “permanent resident” or “eligible temporary visa.”
• Demonstrable income and savings aligned with mortgage requirements.
• Clearance of credit checks and proof of legal funds.

Common Myths

• "I need Australian citizenship to buy property." Not true. Many temporary visa holders and foreign investors can buy under certain conditions.
• "I can't get a mortgage with overseas income." While more paperwork is needed, many lenders do accept overseas income, especially if it’s transferred to Australian banks.

Choosing What’s Right for You

Every buyer's situation is unique. Here are some questions to consider:

• Do you prefer a move-in-ready home or are you okay with renovations?
• Is proximity to city centers a priority?
• What's your budget, including costs beyond the purchase price?
• Are you comfortable waiting for construction or need a property immediately?
• Do you plan to hold the property long-term or sell quickly?

Remember

“The best property for you balances your lifestyle preferences with your financial capacity.”

Final Thoughts

Both new and established homes offer compelling reasons to buy. Your decision should align with your goals, budget, and lifestyle preferences.

For international buyers, the process may seem complex, but with expert guidance and careful planning, you can find the perfect property in Australia. Understanding the nuances of each option ensures you avoid surprises and enjoy a smooth transaction.

Whether you choose the fresh appeal of a new build or the charm of an established home, the Australian property market welcomes your interest. Take your time, consult professionals, and enjoy the journey toward your dream home.