Melbourne is one of the most stunning cities on the planet. Rich in culture. Home to some of the most fantastic architecture. And home to some of the friendliest and most imaginative people on the planet. So its no surprise people flock from all over the world to live in this fantastic city.
But Australia has prospered as a nation due to their strict rules and firm stance on issues such as immigration and property laws. And it is important that you fully understand the various property laws in Melbourne before you buy any property.
We are going to look at the various laws that concern regular home buyers, such as citizens or immigrants moving to Australia. And we are going to look at the more specific laws concerning real estate sales and property development within the city.
Buying A Home
Buying a home in Melbourne is quite similar to buying a home in other first world countries such as the UK and USA. You will need to acquire a mortgage to purchase the home unless you are fortunate enough to be able to afford to buy it outright. Acquiring a mortgage can be difficult, especially as an immigrant, but one option that may be useful for you if you have someone that can vouch for you is using a guarantor for your home loan. You can read more about how to go about this on this guide on using a guarantor for home loans to make sure you do everything correctly.
There are some provisions if you are an immigrant to Australia. Firstly, you need to have the correct type of visa to assure you can actually purchase a property. If you only have a temporary visa you cannot buy property, only rent it. You need to have a resident visa to be able to buy a property.
But, even buying a home for personal use comes with some strings. There is a lot of documentation that needs to be filed correctly, on top of any permits you need for additions such as conservatories or swimming pool installations. So it is wise to consult a property lawyer to find out if there is anything you need to be doing before buying.
Buying Property To Sell
Buying property with the intention to sell comes with some extra restrictions. This falls under the term Property Conveyance. This set of rules covers anyone looking to sell or rent out their property.,
The first thing to consider is zoning. Zoning decides what type of buildings are allowed in a certain plot of land. For example, a complete residential zone cannot have any major shops. An industrial zone can’t have residential houses. So, if you purchase a home you can’t just change it into a retail store simply because you want to expand.
If you did want to do that you would need to petition the local government to change the zoning rules. But this is an expensive and tiresome process.
Another thing you will have to consider is tax. Owning property comes with its own tax implications. And you need to make sure you are aware and paying these taxes. This is one of the biggest issues real estate investors face. One incorrectly filed tax form can lead to a lot of legal trouble.
When it comes to renting there are a few rules you, as the landlord, have to adhere to. The biggest one is the capacity. There are strict rules about how many people you are allowed to home in a single unit. This rule often puts a limit on the maximum and not the minimum. For example, a two-bedroom flat will most likely have a legal limit of four people.
Now you as the landlord have the right to decide if you want to hit that maximum or not. You could rent it just 2 and convert one of the bedrooms. But you cannot go over this limit. The limit is dependent on the property and often the zone as well.
You also have to adhere to the laws pertaining to being a landlord. This includes running maintenance on the property in the event of a non-fault issue occurring. You also have to make sure the people living in your property have the correct visas and permits. If you don’t check this you could land yourself in a lot of legal trouble down the line.