When planning a move to Australia, finances are a key consideration that will dictate your decisions.

The initial costs of moving to another country and buying property can be large, so it’s important to understand what costs you may be facing, in order to plan accordingly. Taking a look at your current financial position, including your assets, investments and income will help create a clear picture of your budget. Once you have a realistic budget in mind, you can take the next steps to researching and acquiring property.

Taking a look at your current financial position, including your assets, investments and income will help create a clear picture of your budget.

Financing your property

Exploring your options for financing a property are important. If you plan on paying cash for property, by selling or refinancing your UK home, or using money from your investments or bank accounts, you need to be aware of certain implications for non-residents, and foreign investment approval is usually required first.

Financing a mortgage within Australia is another option, and the type of financing will depend on your status in Australia (temporary resident, permanent resident, work Visa etc.). In 2016, Australian banks made it more difficult for foreign investors to obtain mortgage loans; however, qualified foreign buyers are still finding success in their loan applications. Under most circumstances, foreign buyers can borrow up to 80 percent of the property value.

There are further restrictions on foreign buyers purchasing established dwellings, with temporary residents unable to acquire established dwellings. For detailed information on rights and restrictions of foreign buyers in Australia be sure to consult with the Australian Government’s Foreign Investment Review Board website.

Additional costs

Besides the purchase price of a property, there are other costs that need to be worked into the final amount payable. Foreign buyers and temporary residents wishing to acquire real estate in Australia must first submit an application to the Foreign Investment Review Board (FIRB), the cost of this application depends on the purchase price of the property. For a £290,000 property the fee would be around 10 percent.


It is important to know the costs associated with buying property in Australia (Chrisstina Morgan / Shutterstock.com)

Other costs buyers may incur include:
– Capital Gains tax (32.5 percent – 47 percent)
– Income tax
– Stamp Duty
– Land Transfer
– Mortgage Registration

The costs involved in buying real estate in Australia vary depending on factors such as state, purchase price, residency status, property type etc. It is best to acquire legal or professional advice to determine the specific purchasing costs that you may be subject to. Ongoing costs such as council rates, utility bills, strata fees (for apartments) and insurances need to be considered when budgeting for a move to Australia.

Overseas money transfers

When the time comes to emigrate to Australia your money will have to move with you. To do this you will have to exchange your pounds for Australian dollars and transfer them to your new home. With so many things to arrange before the big day, have you considered the impact exchange rates could have on the value of your transfers? One day, if you’re lucky, you might find the market rates have shifted in your favour, the next negative movements could leave you with less money to start your new life Down Under.

Smart are experts at helping people like you avoid the risks associated with sending money overseas.

To make sure more of your money moves to the other side of the world with you, we recommend speaking to a currency exchange specialist like our trusted partner, Smart Currency Exchange. They’re experts at helping people like you avoid the risks associated with sending money overseas, and to provide some certainty when it comes to your transfers. You will be assigned a dedicated trader who offer expert guidance and solutions that will protect your emigration budget.

Find out how using a currency specialist like Smart Currency Exchange can help minimise your risk of losing money.

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Save money when buying overseas

Whether you are buying a property abroad, making regular payments, sending money overseas or back in to the UK, you want the most cost-effective, safe and easy way to transfer your money.

That's where Smart Currency Exchange can help. As one of the UK's fastest-growing currency exchange specialists, we save our clients thousands of pounds every day by minimising the risk associated with transferring money overseas..

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