I have a mate who is coming back to oz after living os and wants to purchase property in Melb appx $750k and wants to borrow 80%. He will have cash deposit but wants to buy before getting job to settle his family straight away.
Anyone know if it is possible?
ThanksPeter
Why spend 750K when there are so many others (in excellent areas) for so much less!!!
The median house prices in Melbourne are approx (last time I checked) about 350K; he is talking nearly double that….where does he want to live???
Jo
Williamstown, quality area, quality growth prospects.
Peter
Hi Peter
Not likely at 80% and at a reasonable interest rate. He could probably get an Overseas investors loan at 75% LVR now if he could service the debt on his current income overseas.
Without more details on his situation it’s hard to say whether this is feasible either.
Why would he want to take on 600k worth of debt without any income to support the repayments anyway?
Brendon
Acute Mortgage Reductions
ww.acutemr.com.au
[email protected]Brendon,
He will have reserves to cater for at least 12 months mortgage payments and will pick up job without difficulty due to experience.
What is deal with and overseas investors loans?Peter
Hi River
If I had that buying leverage I’d reckon on renting and searching for better +cf deals
From what I read between the lines, it is a buyers and renters market in Melbourne.
I like Terry Ryders books and emphasis on the three R’s
Resist
Research
Reconsider
Think about it
PursefattenerThere are homes that start as low as 350K in Williamstown, and their growth is just as good as that of 750K. It just depends on what type of house he wants.
Me personally, I’d start smaller, and work my way up….I didn’t get where I am today by “biting off more than I could chew” straight away.
Nevertheless, all the best to him on his endeavour.
Cheers,
Jo
Originally posted by riverside:Brendon,
What is deal with and overseas investors loans?
Peter
Peter
Basically the same as if the applicant was here, except that the max LVR is 75% and there are a few different subtleties, such as a stricter servicibility calculation.You could try a few non-conforming lenders for these and then refinance when your friend gets back and into secure employment. Be aware though that there are heavy exit fees with most non-conforming lenders. Liberty will do 75% for o/s investors at around 8% int rate (will have to check this)
We can only do if the property is + geared at 75% LVR and a 750k property more than likely won’t.
Hope this helps.
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]I kow someone from overseas who tried to get a loan (this was approx. 6yrs ago), to qualify for a normal bank loan thay had to of stayed here for more than 1yr (from memory). They were here for about 6 months, so they were denied the loan.
Rgds.
Lucifer_auThere is a product for people living overseas (who are employed) to borrow in Australia for property in Australia at up to 70% Loan to Value Ratio (LVR). Sometimes there may be special conditions depending on the courty they live in, such as a Deposit Under Lien (DUL) which is a deposit taken by the lender as additional security by the customer. When a DUL is required the LVR is reduced to below 65%.
Ciao
LeonieHi Peter,
I am assuming he is an Australian Citizen or a Permanent resident and he is returning to Oz. If this is right he can borrow up to 80% as soon as he is working full-time PAYG and not under probation. Of course his wage would have to service the loan.
Regards
Tracey[biggrin]hi, i went with Bankwest who offers me 70% LVR as i’m considered an overseas borrower ( non-resident residing in Aus who buys property in AUs )
If he’s a resident of Australia, he doesn’t have to go through FIRB and hence would then be able to satisfy more banks compared to me, as most banks dont’ like the terms set out by FIRB as they deem them risky except a few like BAnkwest for eg.
Also if he’s not a resident he wouldn’t be allowed to buy 2nd hand properties thru auctions ( well he could but he has to sell if off if he can’t continue staying in Aus ASAP within 3 months of leaving Aus, regardless of any profits or loss made ) so his residecy status definitely plays a huge role in the type of properties he’s able to purchase.
Anyway… i’m sure it would be possible. all they require are standard documents like employment and all (eg his current OS employment records )
i think if you were to get in touch with some of the mortage brokers here, i’m sure they’ll be able to assist more.
cheers,
Kev
I bought a property in QLD a few years back while working overseas, the max LVR I could get was 75%.
Just a word of caution though, organise a Power of Attorney to sign docs for you here. I didn’t and it was a complete nightmare with the lender concerned regarding lost docs etc. I had to ask for 3 extensions on settlement and it wasn’t a pleasant experience all round.
Brendon
Acute Mortgage Reductions
http://www.acutemr.com.au
[email protected]Thanks all for the great thoughts and ill pass onto him hopefully helping him make his mind up which direction he wants to go.
Peter
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