The beauty of Sydney is largely due to the generosity of nature. The loveliest harbour in the world started to be carved by its first settlers who dropped anchor at Sydney Cove on the afternoon of 26 January 1788.

Today, there are clear signs of these early years in the landscape of Sydney. The map of Sydney looks like a large bowl of spaghetti, with its ‘unruly crooked streets’.

Finding a home in this city is just one in the series of potential nightmares for newcomers. You will be asking yourself many questions: Which suburb is right for you? Should you rent or buy? Should you live near your work, or far from it? If you have children, should you live near their school? If you are working, should their school be close to your work, or home?... and many more…

These are all questions that me and my husband thought of when we first relocated to Sydney 17 years ago. We decided on the suburb before we even relocated, as we got hold of some nice Sydney brochures. The problem was that the brochures were targeted at tourists, not at migrants! We moved two more times over the next 15 months before we finally found the suburb that was right for our circumstances (working parents with two small children).

Everyone will have their own needs and preferences, and the most important thing when moving is to consider all aspect of your family’s needs and preferences. After moving 20,000 kms, you are in no mood of moving again, even if only a short distance.

I spoke with Dawn Rogers, a Mortgage Consultant for the realestate.com.au – Home Loans, to try and answer some of the questions newcomers might have when moving to Sydney. Dawn moved from London to Sydney some two years ago, and is well aware of both markets.

What does a person relocating from UK to Sydney need to know when buying or renting a property?

Australia places limitations on the types of properties non-permanent residents or non-citizens can buy. These two categories of migrants can apply for loans with the major lenders, who will lend up to 80% of the value of the property. However, they will require permission form the Foreign Investment Review Board before the purchase can settle. For further information refer to the Foreign Investment Review Board website www.firb.gov.au.

To those with Permanent Residency status most lenders will lend up to 95% of the property value, and may also be eligible to apply for the First Home Owners Grant of $7,000 and Stamp Duty concessions.

If you choose to rent, Agents will require a ‘bond’ of four to six week’s rent in advance. This is held in trust by the Rental Tribunal to cover damages in the event of a dispute at the end of the tenancy. When you begin your rental, the Agent will supply you with a booklet which outlines your responsibilities and rights as a tenant.

Can you highlight some of the most important differences/similarities between the property markets in UK and Australia (London vs Sydney)?

Sydney, like London, remains the most expensive city in Australia, attracting people from all over the world. Sydney has enjoyed a property boom similar to that in the UK. Previously unappealing areas have experienced a resurgence following significant redevelopment and gentrification. Surry Hills, Newtown and Glebe are good examples of this, whilst industrially zoned areas have incorporated residential expansion; Zetland and Alexandria for example.

One of the major differences between Sydney and London is in how property is sold here in Australia. An auction process has been a popular method favoured over the more traditional Private Treaty sale. However, Private Treaty Sales are becoming fashionable again due to the recent slight down-turn in the housing market.

It is wise to familiarise yourself with the auction procedure before attempting to bid on your own home. Attend some auctions, and understand your rights and responsibilities. Did you know that if you are the highest bidder at an auction, you are required to pay a 10% deposit? This means having your finances in place before you start bidding is essential.

Sydney-siders have traditionally preferred to live outside the City Centre, however in the last few years many large inner city apartment blocks have been developed around the Haymarket, Pyrmont and Darling Harbour areas, which have encouraged inner city living.

What are some of the things newcomers to Sydney should look for when entering the property market to rent or buy?

Carefully consider the type of lifestyle you want, and your family situation over the next few years. If you favour a relaxed beachside culture, yet wish to remain close to the city, the Eastern suburbs of Bondi, Bronte, Clovelly and Coogee are hard to beat.

The Northern Beaches are another excellent beachside alternative, however, if you working in the City, crossing the Harbour Bridge everyday could add to your daily stress. The Inner Western suburbs of Glebe, Newtown and Surry Hills offer a wonderful rich, colourful and somewhat bohemian community.

Do your research! These days it’s easy as properties for rental or sale can be searched from the comfort of your own home via the web at www.realestate.com.au, the biggest address in real estate.

Can you give some tips to the new migrants on what they need to look for, or be aware of, when moving to Sydney, as far as property to rent or buy is concerned?

When renting make sure you do it through a reputable Agent, who will offer you a Lease contract for between six to twelve months at an agreed rent for that period.

Parking in some areas can be difficult, so you may want to ensure that a residents parking permit is available for street parking before you sign a lease; give the local Council a call. Your property agent/real estate agent will advise you of the relevant Council details.

Be aware that most agents require one month’s rent as a bond up front. Most apartments do not include washing machines or fridge/freezers, but must include clothes drying facilities either outside or with a supplied dryer.

Here are a few useful abbreviations in property advertisements:
bir = Built in Robes
eik = Eat in kitchen
LUG/DLUG Lock up Garage and Double Lock up garage

If buying, get to know your chosen suburb by doing lots of research and very importantly make sure you have your finance approved before you go looking. A pre-approved home loan will save you time, stress and help you to budget effectively.

Find a local Mortgage Consultant who has access to a large number of lenders. Your consultant will work on your behalf to find you a suitable home loan, and assist with your application right through to settlement. Best of all their service is FREE because they are paid by the Lender once you have settled.

You can find your local Mortgage Consultant on home-loans.com.au

From your professional, and personal experience, is it more economically viable to rent a furnished apartment/house, or non-furnished, and buy furniture?

Most long-term leased properties are advertised as unfurnished. Furnished properties tend to be available on short-term leases and are more expensive, taking into account the wear and tear on the furnishings. You will find many stores in Sydney selling inexpensive furniture, and second-hand items are readily available.

Can you comment on which suburbs, from your experience, seem to be newcomers friendly in Sydney?

The best way to find this out is through social networks. A good start is the Newcomers Network in Sydney, which holds monthly ‘Welcome to Sydney’ events every second Sunday. These informal social events are designed to facilitate social interaction between people who have moved to Sydney. More details can be found on www.newcomersnetwork.com/mel/events/05wts.php.

What are some of the determinants of property prices in Sydney?

Location, location, location! The supply of properties around the beaches and inner city are limited which continues to fuel demand and therefore higher prices. Tightly held attractive, safe beachside properties close to the City in the Eastern Suburbs and Lower North Shore remain highly desirable and prices reflect this. Generally speaking, the further away from the City centre, the more reasonable property prices become.

Is there a particular time of the year that is in favour of property buyers?

Post Christmas has traditionally been a good time for buyers due to the higher number of properties on the market. However, as stock levels increase so do the numbers of buyers.

Winter is a better time to consider renting, particularly the beachside properties, which become scarce and increase in price towards the warmer months - September through to February.

Would your advice on buying a property be different for someone who is moving to Sydney for 4-5 years, as opposed to a long period of time?

The entry and exit costs of purchasing property need to be considered against rental outgoings. Your Mortgage Consultant can assist with advice on these costs.

Hopefully these FQA will provide you with some information you need to take into account when relocating to Sydney. Dawn can be contacted directly via email on dawn.rogers@realestate.com.au.

Extracts published in The Australian News, a monthly newspaper for migrants in the UK.

©Challenging Directions, 2005