JetBlast Posted June 12, 2020 Share Posted June 12, 2020 Hello, I am currently in SA on a 489 visa. I will be stung on the stamp duty if I purchase a property. I am wondering if I took out a joint mortgage with an Aussie citizen if the tax on “foreign investors” will be reduced please? I did a bit of Googling without much luck! Cheers Quote Link to comment Share on other sites More sharing options...
rammygirl Posted June 13, 2020 Share Posted June 13, 2020 As far as I can see you are considered a temp resident for FIRB approval so that would indicate you will pay the stamp duty surcharge and be ineligible for any first home owner grant. If you purchase with a PR or Citizen then you are still required to pay surcharge on your part of the purchase. So if owned 50/50 then half the purchase price will be deemed to be foreign ownership and subject to FIRB and stamp duty excess. It may well be better to wait until you are PR. 2 Quote Link to comment Share on other sites More sharing options...
Soniah Posted July 21, 2020 Share Posted July 21, 2020 On 12/06/2020 at 19:46, JetBlast said: Hello, I am currently in SA on a 489 visa. I will be stung on the stamp duty if I purchase a property. I am wondering if I took out a joint mortgage with an Aussie citizen if the tax on “foreign investors” will be reduced please? I did a bit of Googling without much luck! Cheers Hi JetBlast, I think we've chatted here before we got our 489 visas. Hope the move's worked out well for you? I'm in same situation. We've settled well in Adelaide and I hate the thought of throwing away money on rent for another 4 years, so debating about taking the hit with the extra costs. Also looking into idea of buying house with my sister who is a citizen, but not sure if that's going to be too complicated with regards to tax implications for her. Quote Link to comment Share on other sites More sharing options...
Marisawright Posted July 21, 2020 Share Posted July 21, 2020 (edited) I suggest you do the calculations. Work out how much 4 years rent will be. Now work out the cost of the extra stamp duty, FIRB fee, rates for 4 years (which you don’t pay when renting), conveyancing fees and finally, interest on the mortgage for 4 years (bear in mind that the bulk of your repayments in the first few years is nearly all interest - you’ll need to find a mortgage calculator to work it out) Which one comes out as cheaper? It’s often a myth that rent is money thrown away,. Some would argue that the house will be increasing in value during those 4 years but in the current economy that is less likely. Buying a house with a citizen won’t get you off the hook, it would need to be legally in her name - so effectively you’ll be gifting her the money Edited July 21, 2020 by Marisawright Quote Link to comment Share on other sites More sharing options...
JetBlast Posted July 31, 2020 Author Share Posted July 31, 2020 On 21/07/2020 at 15:53, Marisawright said: I suggest you do the calculations. Work out how much 4 years rent will be. Now work out the cost of the extra stamp duty, FIRB fee, rates for 4 years (which you don’t pay when renting), conveyancing fees and finally, interest on the mortgage for 4 years (bear in mind that the bulk of your repayments in the first few years is nearly all interest - you’ll need to find a mortgage calculator to work it out) Which one comes out as cheaper? It’s often a myth that rent is money thrown away,. Some would argue that the house will be increasing in value during those 4 years but in the current economy that is less likely. Buying a house with a citizen won’t get you off the hook, it would need to be legally in her name - so effectively you’ll be gifting her the money It’s not all about the money. Renting had many downsides. Although ownership does as well. Quote Link to comment Share on other sites More sharing options...
Marisawright Posted July 31, 2020 Share Posted July 31, 2020 1 hour ago, JetBlast said: It’s not all about the money. Renting had many downsides. Although ownership does as well. As you say, there are pros and cons. The big risk of buying, especially now with visas in such flux, is the risk of not being able to transition to PR and having to sell up after 4 years, making a huge loss (because there would be no way you could recoup the stamp duty). Quote Link to comment Share on other sites More sharing options...
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