Purchasing land and designing by yourselves is the most common form of purchasing property in Australia. Builders generally offer several standard floor plans for buyers to choose from. Australian locals generally accept builders’ standard drawings, and these standard room types have received the approval of the government, land delivery. Therefore, as soon as the building program starts, builders can generally control the entire construction cycle, usually in accordance with the construction contract within the time agreed. Therefore, “buy land to build a house” is quite attractive to buyers, and the land is a freehold property that can be handed down from generation to generation.
In Australia, buying a house for construction requires the separate signing of two contracts, one for the land contract and the other for the construction contract. Nearly 60% of Australian property developers’ properties fall into this category. In particular, the Victoria is the most common, because the Victoria allows buyers to bear only the stamp duty on land value, such as the purchase of land before the building, you can save the building stamp duty.
Code 3 of the “Detailed Rules for Foreign Investors Investing in Homes in Australia” clearly stipulates that non-resident foreigners may also purchase vacant land for residential development but they also need to apply to FIRB prior to their purchase, however, the approval often associated with certain conditions (such as starting in 24 months, etc.). In short, after an overseas buyer gets an application, they can build their own home after purchasing vacant land in Australia!
Buying land on the market currently divided into the following two conditions:
1 purchase of independent open space: purchased by the buyer through the builder design and construction. In this case, the finished new villa may save 50-100 million Australian dollars (about 300-500 million yuan) than the direct purchase.
2 Subdivision: the buyer can choose to buy the land, which is then left to the developer of construction and construction for the land and house package. Buyers can also choose their own apartment layout. The investment time and energy is relatively small from this perspective.
The benefits of buying a house in Australia
Buying a house in Australia can save buyers a lot of taxes and fees. For example, to buy a 700,000 Australian dollar apartment, stamp duty to be paid about 26,000 Australian dollars; to buy a 100 million Australian dollars new villa need to pay the stamp duty will need about 39,000 Australian dollars. If the owner buys a house, assuming that the land is worth A $ 450,000 and the building cost is A $ 450,000, the buyer only pays a stamp duty of 450,000 worth of land (no stamp duty on the construction part), at about A $ 17,000. This one for the owners left a considerable stamp duty costs.
In addition, buying land for building houses requires less initial investment, providing buyers with more time to prepare their money. To buy land only 10% of the premium as a deposit, that is 4.5 million Australian dollars (about 270,000 yuan). Buyers can also negotiate with the sellers more flexibly on the date of delivery of the land to ensure that they have sufficient time to prepare the remaining funds for the loan.
In the purchase of land at the same time, buyers can also choose your favorite apartment layout, construction and construction consultation time and price. Generally need to pay 5% of the cost as a deposit, and 22,500 Australian dollars (about 130,000 yuan). The remaining funds will have to be paid to the builder by agreement after the delivery of the land.
Platinum Real Estate Investment Group provides our clients with a professional buy-build and related advisory services. Platinum Real Estate Investment Group has a wealth of land resources in Melbourne. Therefore, according to the needs of different clients, we can recommend the appropriate land type. So far, our company has successfully helped dozens of customers to find satisfactory land resources. If you need to consult the purchase of land related issues, please feel free to contact us, our professional team will reply as soon as we can, providing you with the most professional advice.