Example of Buying an Apartment or Townhouse in Melbourne
Most apartments and townhouses purchases are offered in a single contract in Australia. A property purchase contract is often referred to as, Contract of Sales (COS). In these instances, buyers are expected to exchange the contracts with a 10% downpayment and the balance 90% of the price would be due at settlement (when the physical construction is completed).
0%Downpayment at COS
0%Balance Purchase Price at Settlement
This article aims to simplify, summarize and demonstrate via examples to help foreign purchasers understand the timeline and payment structure in buying a single contract property in Melbourne, Australia. (This is applicable and similar in most other States in Australia).
EXAMPLE 1: Off-The-Plan for Foreigners
Buying off-the-plan is a common term used in Australia for referring to buying a property that has not been built or under construction. One of the main advantages for buying off-the-plan is the buyer usually has more time to arrange for the final payment especially if the project has a longer settlement timeframe.
$600,000 Case Study
2 bedroom apartment
Settlement in 12 months
0Estimated Total Costs
0CURRENT Until 30 June 2021
Estimated Acquisition Costs
The Process & Payment Timeline
Submit reservation from pay booking fee (usually $2,000)
Total Payment Upon Contract Exchang
Contracts issued & Sign Contract usually within 14 days, Pay balance 10%, Apply for FIRB Approval Exchange, Contracts / Contract becomes unconfidencial
Balance Payment at Settlement
Pay balance 90% of purchase price, Pay stamp duties, legal fees and other statutory costs, Property ownership transferred to purchaser
CURRENT Now till 30 June 2021
Vacant possession of property, hanging over keys to purchaser, Move in or hand over to property manager for leasing
1. Current stamp duty discount in Victoria is only valid for Contracts signed between 25 November 2020 to 30 June 2021.
2. Purchasers must observe all timeframe or timeline specified in contractual documents to perform specific task or obligation.
3. The sample above is a guide generated based on past cases and each transaction could vary in some form.