Getting to know Australia
Immigration has played a hugely significant role in Australia’s history ever since the first convicts arrived in the country from the UK back in 1787. While those convicts had little choice about being shipped to what was then a largely untouched, barren land located deep in the Pacific, those who have followed in their footsteps certainly knew what they were doing.
From the migrants who arrived during the 19th Century Gold Rush to those who moved to Australia through various repopulation schemes in the post Second World War years, right up to modern day migrants, it’s not hard to fathom the country’s long-lasting appeal.
After all, this is a nation that boasts a fantastic climate, plenty of space (Australia has one of the lowest population densities in the world), over 10,000 beaches and some of the most iconic landscapes and scenery found anywhere on this planet.
Add to the mix a great education system, fantastic healthcare and a healthy economy and its appeal only grows.
Unfortunately, Australia’s popularity as a migrant destination today is so high, that the Oz government is mainly only interested in welcoming immigrants who can either benefit the country through their skills or who have close family already living in the country – without the right skills or close family ties, then a new life in Oz may remain little more than a dream for some.
Property Market overview
Australian property prices, particularly in the locations most popular with immigrants have increased rapidly in recent years. Houses in the country are among the most expensive in the world, but there are, of course, local house price variations. However, in the first few months of 2015 there were signs that the pace of price rises is starting to slow. Growth in housing values slowed in the first quarter of 2015, from the previous quarter and from a year ago, according to the CoreLogic RP Data.
National average house price: AUD 658,608 (approximately £321,747)
State capital with lowest average price: Hobart, Tasmania – AUD 382,500 (approx: £186,874)
State capital with highest average price: Sydney, New South Wales – AUD 929,842 (approx: £454,284)
Price sources: Australian Property Monitors (May 2015)
Basic Mortgage Facts
- Max 80% loan to value for non-Australians, and up to 95% loan to value for Australian citizens
- Max term 30 years
- AUD 100,000 minimum loan
- Rates from 4%
Eligibility criteria for mortgages in Australia are generally quite good, and you can still borrow up to 80 per cent of the value of a property if you’re not an Australian national, and the minimum loan is AUD 100,000. Rates currently start from 4 per cent and lenders will use affordability calculators, which can differ from one institution to another, so maximum borrowing amounts can vary significantly. Many will use a debt coverage ratio that takes into account anticipated monthly capital repayments on all mortgages, so that the sum total of all mortgage and personal loan commitments does not exceed 50 per cent of your net monthly income.