How much should buying an investment property in Australia cost?
Updated: Apr 29, 2020
Depending on where you intend to invest in Australia, it's crucial that you control and understand the costs to your investment. How much should your investment in Australia cost, though? On average, the upfront cost of an investment property varies depending on location but there are average fees that are incurred when you complete a property purchase. This generally ranges from 2% to 5% of your purchase price which includes professional services and administration costs.
How much does it cost upfront to purchase an investment property in Australia for a foreigner?
Get a quick summary of how much it costs to purchase an investment property for a foreigner (on average) in this table. Keep reading to learn about the different expenses that come with your investment property purchase.
So how much does it cost to purchase an investment property? On average between $8,000 to $20,000 (excluding 10% deposit)
On top of these fees. Learn about stamp duties and it's implications to you as a foreign property investor in Australia.
How much does it cost to acquire an Australian home loan for a foreigner?
Private Lender's in Australia usually charge a fee to arrange and prepare a loan. This generally ranges from 4% to 5% of your loan amount which includes mortgage insurance and arrangement fees.
Get a quick summary of how much it costs to obtain an Australian home loan for a foreigner (on average) in this table. Keep reading to learn about the different expenses that come with your investment property purchase, as well as the price differences between engaging a onshore agent vs. an offshore agent.
Is there a difference when you engage an onshore agent vs. an offshore agent to help with your home loan application?
Why Is there a Difference?
Regardless of how these fees are paid, whether upfront or built-into the loans, these are costs which are presented or structured as part of the program.
Onshore agents don't charge fees upfront, however, costs are significantly higher (as they take more risk in doing more work without the promise of a fee).
Offshore agents charge fees upfront, however, costs are significantly lower (as they are unable to command higher commissions compared to onshore brokers).
Even though you can apply for a loan on your own, you may not cover all of the hidden terms and conditions of a loan, or may not be cover products comprehensively and give an independent comparison. Which is critical when choosing a loan.
Want to learn more your investment property and how to make your purchase easier, from what is included to what you should pay? Contact Us.