Hi All,
I have been reading through the forum boards and have read that some of you have been purchasing property in the UK and USA, anchiving great returns.
I would like to ask a few questions relating to purchasing property overseas.
1. How easy is it to get finance? Can you get 95% LVR? and do you borrow from an Australian bank or a bank in the country of the property?
2. What are the tax implications? Do you pay income tax in the country of origin, Australia, or both?
3. Are there any other issues that arrise from purchasing overseas that are different to Australia?
Any information would be appreciated.
I am currently looking to buy in other states to where I live, mainly using the internet. I figured searching for the propertys would not be that much harder if they are overseas to interstate.
Thanks,
Simon
Hi Simon
Good on you to consider an investment away from you immediate confort area.
Coming originally from the UK you can certainly get a better rate of return that here in OZ but remember there are a large parts of the Country where you just wouldn’t buy. In the UK with the new FS rules you would not get more than 80% on a Buy To Let mortgage. Many companies advertise 90/95% but the fact of being a non resident will hinder this. Lending will be from a UK lender.
In the US it is much the same although the lending criteria is treated totally differently.
80% maximum or 100% with a CD as additional security is the limit.Certainly interest rates in both Countries and the competition in the lending market make the number of lending options vast.
One consideration is the currency fluctuations if you need to top up your account.
Would strongly suggest that you team up with someone like Westan or Mic from Aussie House Hunters and have a look at the properties they are offering in the US.
In the Uk feel free to bounce areas off me. Just avoid towns like Burnley, Oldham, Hartlepool.
Cheers Richard
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http://www.yourstatefinance.comDevelopment funding and US property finance
Our specialityRichard Taylor | Australia's leading private lender
Thanks for the info Richard,
Do you know where my tax dollars would be going? Or is that a complicated issue?
Simon
Hi Simon
I’m not an accountant, so check what i’m saying.
The USA, NZ Aust the UK and a few other countries have double tax agreements so you will not pay double tax.
However things can change depending what entity you buy the asset in. For instance if you buy in the USA using a C-Corp you will not get the full benifits of the double tax agreement.So its not completely straight forward and best to be aware if you use different structures of ownership some different rules may apply.
Regards westan
Break into the foreclosure market in the USA or Cash Positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
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