Relocating to Australia? With home prices in Australia being extremely high for the average buyer, it’s unrealistic that most buyers can finance a home purchase with cash. The majority of buyers need the approval of a lender in order to make a purchase. As more and more people relocate to Australia from other countries, the government keeps tightening its home buying regulations in order to keep competition fair and to regulate who can purchase homes in the country. If you’re choosing whether or not to move to Australia, you’ll need to know how to build up a solid financial and credit history so that lenders are willing to loan you the money needed to purchase a home. Even if you have a stellar credit history in your home country, none of that will matter once you become a citizen of Australia.
Before making a home purchase, it’s a good idea to rent in the area you are considering moving to. This not only allows you to experience the area and the people of that location, but gives you an idea of the real estate. The rental time also allows you to start building up a credit background. You can apply for credit cards, open up a store account, or make a vehicle purchase to show that you are able to purchase things on credit and make payments. If you pick up a job while renting, that’s another plus when applying for a loan. A job shows stability and ensures the bank that you have incoming money to pay the mortgage. Another way to show real confidence with the banks, is to get may be a second job, this way you are proving up your chances by showing that you are not afraid to work , you will be able to meet the monthly repayment to the bank and quite possibly clear your debt to the bank quicker.
Work with Professionals Who Have Experience with Relocation
Because Australia is the ideal home for many people, mortgage lenders and real estate agents are familiar with working with people who relocated to Australia from another country. This means that there are experts familiar with helping people obtain a home loan when they have little to no credit history and may or may not have a steady job. You can discuss ideas with your real estate agent on how to make your loan application more appealing to lenders, and get suggestions on the best way to build up a strong financial background now that you’re living in Australia. You may even consider asking an Australian real estate agent to help you find a rent-to-own scenario so you don’t have to move twice.
Although the Australian government has tight regulations, they do offer some home buyers certain incentives on their first purchase. This, combined with the fact that Australia is brimming with new citizens, means that you could build up your credit history and purchase a home within your first year.
I enjoy bringing this blog to you each week and I read and look forward to your comments.
Untill next week have a good week .
Regards Richard Colum
Australind, Western Australia Australia