Forum Replies Created
I should also state I don’t live in Aus, but in Tokyo, Japan.
to follow up: They verify income through payslips as well as bank statements, savings, investments etc. They may need to be translated. Bear in mind that they also calculate their own FX so if you’re paid in another currency they’ll have a buffer on the spread to AUD.
Hi R2D2,
They absolutely do, I’m a Canadian living in Tokyo and I’ve had/have mortgages through HSBC, Westpac, NAB, and ANZ. Depending on your situation your LVR can vary, but 80% is typically the norm. If you’re a premier customer at HSBC (you can get this account but asking your relationship manager in your home country to set it up for you) then you might be able to do slightly better.
Be prepared to spend a lot of time at the Australian Consulate getting documents verified by a consular officer!
Of course, the best and easiest way is to speak to a mortgage broker who has experience dealing with overseas investors.
Thanks DeanCollins, yes, most banks will give anyone 70%, HSBC will consider 80% LVR on a case by case basis (helps if you’re an existing premier customer). I’ll see if they come back with anything first.
Understood Corey, since I’m a non resident I doubt any of the remaining big four would consider me. I’m going to try my main bank HSBC as they’ve said (subject to their application) that they’d give me 4.35%. Basic customer service is such a simple thing, you’d have thought Westpac would have figured it out by now. I’ll be in touch if HSBC passes sir.
Thank you Terryw, I just can’t fathom not informing your customer directly of a change in rates that would affect repayments, either up or down. As investors we always plan for interest rate fluctuations on variable loans, I just thought the bank would be required by law to inform their customers of any changes pertaining to that loan. I’ve always been informed from my other banks in Canada, Japan etc.
Thank you for your reply Corey.
Very surprised they don’t at least notify you, if I increased the rates I charged my customers and didn’t tell them I doubt I’d have many customers left!I guess the best way to protest is to take my business elsewhere.
I bought in a mining town, my first IP in Aus. What a mistake that was! I have however learned from that mistake, ate some humble pie and moved on. I still own it because even if I offered it for 50% less then what I bought it for there would be no buyers. I’m sure there are more then a few people on this forum who are in my shoes but unfortunately unless your IP is tenanted and returning 10% then it’s unlikely you’ll get any buyers. My guess is that there is about 5 more years of pain before some light at the end of the tunnel. I could of course be wrong, wouldn’t be the first time!
Hi Mara,
I can tell you with absolute certainty the biggest mistake I made was not investing in knowledge and resources linked to real estate prior to buying. Far too often people are happy to part with 300-400k to buy an investment property but are very unhappy to part with 10-20k on mentoring or materials that would save them 10s of thousands of dollars later on.
I would say before you take the plunge take 6 months out to read books, attend seminars, take courses, and in that time do not buy any real estate. There will always be deals at any given time so don’t feel bad about missing out! If you want to be an investor you will at some point have to take action, but action taken when you’re adequately prepared is the only action worth taking.
Yes I totally agree with Jamie, work backwards from where you want to be and formulate a plan to get there. What do you want your financial future to look like 5,10 and 20 years down the road? I would also second his approach to talking to a mortgage broker first. Given my experience in Aus they are typically the most knowledgeable/helpful individuals aside from professional investors.
I wish I were in your shoes and had discovered this forum first before I started!
Best of luck.
Agree with MTR. Your money is made in the timing of the buy in the cycle. Buying at the top keeps you at the bottom for a long time!
Established property with potential for manufacturing capital growth through strata titling, sub-dividing and renovating is your best bet. Take it from someone who bought 4 brand new properties in 3 years and wish they hadn’t!
I would say without any on the ground intel, be it a spouse, relative or someone you can trust there is no point in buying overseas property. I’m based in Tokyo, have an Australian wife, and am Canadian. I have properties in each of those Countries because I understand (to an extent!) the ins and outs of those markets and have connections there.
That said, my Australian portfolio is suffering the most because I went against the best advice which was to start slow and to pay for worthwhile real estate education. The same strategies that work in other jurisdictions do not always work elsewhere. The success that I have in Canada and Japan has definitely not translated to success in Australia.
Being a newcomer on this forum I would warn that Australians thinking of searching beyond their international borders take a step back and look what they can do in their own country. Once you employ tried and tested methods for growing your portfolio locally and you have a solid portfolio backing you, you can begin to think about looking offshore.
I own close to AUD8mm worth of property in Japan, but unless you’re a resident, or you have a JV partner you can trust on the ground Asian investment properties are generally very hard to get finance for. Typically it’s cash only, or if you’re a premier account holder at HSBC or another global bank equivalent you can get mortgages with preferential rates. However this is getting harder.
There are plenty of high yield property’s in Aus, and lots of strategies to create cash flow. I wish I had know this 3 years ago when I started my acquiring property in Australia. My portfolio would look a lot healthier!
Sorry I’m new to the forum as well and have the same issue in Newman WA, any advice is welcomed!
