# Owner/Occupier Apartment in Melbourne



## malihaqureshi

Hello  

We are planning to move to Melbourne by July-August 2015. I am looking to study for a PhD or MPhil full time while my husband will be working full time. We are expecting an after-taxes income of about 60K per year.

We are a young couple, and are looking to live in or near the CBD. We are looking into buying an apartment as opposed to just paying rent - we are hoping we can take a home loan/mortgage. 

Is it a good idea to put in some down payment and buy an apartment instead of just being in the rent rut? Also, what are the additional costs when purchasing a property in Melbourne? 

We can put in about 50-60K as down payment for a place. Should we be saving up for other home owners' costs?

Is it better to do this on your own or would you recommend hiring a real estate agent?

Thank you for your time! 

- Maliha


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## aussiesteve

malihaqureshi said:


> Hello
> 
> We are planning to move to Melbourne by July-August 2015. I am looking to study for a PhD or MPhil full time while my husband will be working full time. We are expecting an after-taxes income of about 60K per year.
> 
> We are a young couple, and are looking to live in or near the CBD. We are looking into buying an apartment as opposed to just paying rent - we are hoping we can take a home loan/mortgage.
> 
> Is it a good idea to put in some down payment and buy an apartment instead of just being in the rent rut? Also, what are the additional costs when purchasing a property in Melbourne?
> 
> We can put in about 50-60K as down payment for a place. Should we be saving up for other home owners' costs?
> 
> Is it better to do this on your own or would you recommend hiring a real estate agent?
> 
> Thank you for your time!
> 
> - Maliha


Hi
I don't know how close you wish to live to the CBD but prices are astronomical! The cheapest would be at least $300000 plus
I suggest you look at www.realestate.com.au to get an idea of the cost of properties.
There are a number of other problems, not the least being finding a lender willing to finance your purchase when you have no previous work history, also as you are not permanent residents yoy may need to get permission from the Foreign Investment Review Board depending on the property you purchase. 
As far as purchasing a property the seller pays the agents fee so you will have no costs there but you will have legal fees of a few thousand dollars plus property transfer fees of $13000 plus on a property value at $350000.


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## malihaqureshi

I'm sorry I forgot to mention that we are Permanent Residents. Yes, I have been researching on realestate and anything close to the CBD is really expensive. We do still want to be close enough to the CBD so we can take a tram to it. Would really like to be car-free especially having lived in the Middle East for 3 years now! I have looked at places like Docklands and St. Kilda (I really liked the neighbourhoods when we visited Melbourne) but the prices are really high as well. 

Do we still have to pay transfer fees if we can put in payment for an under construction property? I was also looking at FHOG and everything seems a bit confusing at the moment. 

I'm thinking the best way to do this might be to move to Melbourne first and then look at the options available. We can rent for a few months (if we can find a short term lease). 

Thank you.


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## malihaqureshi

I forgot to mention we are Permanent Residents. It's true that we won't have any work/credit history in Australia when we move so we are thinking it might be a good idea to move and rent first. Then we can wait a few months, even up to a year, to establish a credit history and also get an idea of the property market.

I have been looking at the website you've mentioned and prices in/near CBD are really high. But, in contrast, we visited the Docklands and St. Kilda area when we were in Melbourne and the prices are very high in these areas as well. We really would like to not have a car (having now lived in the middle east for 3 years!). 

Thank you for your advice, made me think of a few things we weren't considering before.


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## KitKaat

Malih how you can rent a house without a reference. I am looking for a place to rent as next week I am going to melbourne. I am currently searching for a short term property. Do you have friends in Melbourn?


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## malihaqureshi

I didn't know one needed a reference to rent. We do have some people we know in Melbourne.


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## KitKaat

Yes that's one of the rent policies.


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## nigelabery

Firstly, be very careful about buying an apartment in the CBD there is an oversupply. Try googleing "melbourne cbd apartments oversupply" so depending on your objectives (like if you are keen on getting a capital gain) it may not be the way to go.
Secondly, buying off the plan can also be a problem, especially in the Melb CBD, expect that on completion that the bank valuation will come back a lot lower than what you paid for it.
Third, do not worry about building a "credit history" focus on building/saving your deposit the lenders love to see that and it will reduce the amount you need to pay for lenders mortgage insurance and the repayments. Lenders will concerned if you have a bad credit but not a no credit history.


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## Syed_1995

melbourne is very expensive


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## homesmart

I believe your previous bank statements and pay slips would help you showcasing a good credit history..One of my friends was asked to submit the above documentation....Also, the most important part is inspecting the property..Just be sure of maintaining a regular contact with your agent....things get really easy if you do so...


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## freejumper

just call a real estate to ask them more informations


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## WinnethFKPL

Hi Maliha,

There are a lot of apartments being built around and in Melbourne CBD. The new ones start around $450,000 for a one bedroom place and goes up from there. Downpayment is about 10% of the approximated value of the property you are looking for and if you want to get a loan via a bank, it might be worthwhile to look for lending agent/mortgage broker.

If you are going to rent your own place with a lease signed to your name, that will involve you inspecting the place (agents will not let you rent a place without an inspection) and having references (as mentioned here) and/or proof of ability to pay for rent. The shortest leases are 6 months long but I have been able to get 3 to 5 month long leases for my clients. They are not easy to come by and there are negotiations involved.

The other option is to move into a serviced apartment. It will be like living in a hotel so you just have to book it. Obviously, this will be more expensive but it will be hassle free.

Hope the information helps.

Cheers, Winneth



malihaqureshi said:


> Hello
> 
> We are planning to move to Melbourne by July-August 2015. I am looking to study for a PhD or MPhil full time while my husband will be working full time. We are expecting an after-taxes income of about 60K per year.
> 
> We are a young couple, and are looking to live in or near the CBD. We are looking into buying an apartment as opposed to just paying rent - we are hoping we can take a home loan/mortgage.
> 
> Is it a good idea to put in some down payment and buy an apartment instead of just being in the rent rut? Also, what are the additional costs when purchasing a property in Melbourne?
> 
> We can put in about 50-60K as down payment for a place. Should we be saving up for other home owners' costs?
> 
> Is it better to do this on your own or would you recommend hiring a real estate agent?
> 
> Thank you for your time!
> 
> - Maliha


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