Buying a Home in Australia? Title Types and Extra Costs to Know About

If you are planning on buying a home overseas in Australia you should make sure that you get the correct type of title as there are several different types of titles to property in Australia. You will also need to be prepared for the extra costs and fees involved in buying a home abroad in Australia that you may not be used to paying for property in your home country.

There are five different types of titles to property in Australia. Because of this, it is important to make sure that you are filling out the appropriate form to title your home the way it should be. Most of the properties in Australia have a freehold title. With a freehold title, the owner gets a copy of the certificate of title, or the deed to the property, or the strata title. Strata titles are commonplace for apartment sales. Strata titles have a management agreement that states that services and facilities are provided for the residents and that there may be a management fee for this service. Strata title offers you the highest level of security tenure. It also offers you the ability to borrow against equity you have gained and the retention of any appreciation you may have obtained in its value. A leasehold title is typical of retirement villages. Under a leasehold title you purchase a long lease for either 99 or 199 years. This type of title is cheaper than a strata title. This type of lease is transferable but there is no capital appreciation if you do transfer the lease. If you have a company share title what you have in essence is a share in the company that owns the property. That gives you the right to tenancy. This type of title makes it difficult to resell. And a loan and license title is typical of donor funded estates. This is when you pay a developer or sponsor a donation plus an interest free loan. By doing this you are buying the right to occupy a unit and use the facilities and amenities of the property. This is common of retirement villages.

Your certificate of title to your property is issued to you by the state lands title office, or land registry, in Australia. This is where all land and property ownership in Australia is recorded. Mortgages are also recorded in this office.

When you buy your new home in Australia you should remember to plan for extra costs and fees. Usually this adds on about four to six percent on the cost of the property. The fees are calculated as a percentage of the value of the property. The fees that you will be paying are stamp duty, land transfer registration, legal fees, solicitor's fees, conveyancer's fees, taxes, mortgage fees, termite and pest inspection fees, strata inspection fees, surveyor fees, building insurance and other miscellaneous costs like an architect's fees.