Frequently asked questions

1. Do I need a lawyer in Australia to buy property?
  Instructing a lawyer will ensure that you receive what you are promised and most importantly that you obtain a good title to the property.  An independent lawyer will protect your interests and ensure that the transfer of title is done correctly.

2.What sort of title do I get?
You get a freehold title; that is a title in perpetuity.

3. Is there property tax on this apartment?
Victoria and Australia in general do not have annual property taxes as are common elsewhere.  You will pay stamp duty on the purchase.  This is equivalent to approximately 5% of the purchase price and a government registration fee simply to put your name on the title.  Other than that there are no property taxes associated with this purchase.

4. What costs do I have to pay each year?
There are the normal rates for the provision of water, sewage and local council services.  In addition, if you are purchasing a Unit or dwelling with common property, there will be Owners Corporaiton fees which cover the insurance of the building, maintenance of lifts and all facilities including concierge, public lighting, swimming pool, tennis court, security systems and cleaning (where applicable). There will also be consumption fees for water, electricity and other services.

5. Can I lease the property out?
 Yes, the property may be leased by you.  We recommend that a managing agent be appointed to locate a suitable tenant, collect the rent and attend to payment of rates, Owners Corporation quarterly maintenance fees and take care of any maintenance issues should they arise. 

6.When can I sell the property?
 Once you have completed your purchase, you are free to sell the property at anytime.
 
7. What happens to the property on my death?
  The property can be transferred by Will to any person you wish unless you hold it as joint tenants. We strongly recommend that you complete an Australian Will which applies only to your Australian property.  You may then leave this property in accordance with that Will.

8. When should I make a Will?
We recommend that you make a Will immediately following the settlement of your property.

9. What are the legal costs associated with the purchase of a property?
 Legal costs depend, of course, on the work required.  In every case you will be provided with a fixed upfront fee which will detail not only your legal costs but the appropriate stamp duty, registration fees and any anticipated disbursements. 

10.Can I borrow funds to assist with my purchase?
 Most of the major Australian banks will, subject to your financial position, be prepared to provide finance up to 70% in most circumstances and in some situations with additional security, a higher percentage borrowings may be achieved.

11. What are the tax implications of my purchase?
 Tax is a specialised area and we recommend that you appoint an accountant.  We are happy to provide a referral for this purpose.  In general, if you do not lease the property then there are no income tax implications because you have no income.  If you lease the property out then you may offset against the income earned all expenses associated with that property including interest paid on any borrowings together with depreciation and a number of other expenses or deductions.  Australia also has capital gains tax however this tax effectively reduces by 50% after you have held the property for 12 months. 

12. I am a non-resident of Australia, will the purchase of a property help me with a visa to Australia?
A temporary or visitor’s visa will usually be made available to allow a prospective purchaser to inspect a property intended to be purchased.  It is of assistance if an invitation is obtained from the Vendor developer in support of that application and a further letter of support may be obtained from your solicitors.  In several classes of visa application, particularly with retirement visas, the purchase of a property can form part of your qualifying assets.  Similarly in several classes of business visas the value of the property can also form part of your overall qualifying assets.  Immigration is a complex area and we would be delighted to provide you with an initial evaluation if you are interested. 

13.What will you do as my lawyer?
We will assist you from the time you sign the contract until the time the property has been settled, a good title is obtained and held by either you or your lending authority and the keys are in your control.  Our more defined functions are set out in our brochure.

14. What if I have other queries?
 That is the role and responsibility of Nevile & Co Commercial Lawyers.  We are a firm based in the central business district of Melbourne with many years experience in dealing with transactions of this nature for domestic and offshore clients.  We have both the experience and expertise to assist you with this transaction.