Forum Replies Created
Hi Seanlisa,
As long as the loan is for investment purposes you can use the existing equity in your house to purchase an investment property and still claim all tax benefits.
The problem with transferring the old house would be the stamp duty that you would have to pay. It may provide greater asset protection but would be quite costly. I would suggest that you speak with an accountant about the best way to structure to protect your assets.
I hope this has been of assistance.
Kind Regards,
Cameron Perry
Finance Consultant
F.R. Perry & Associates
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044No problem Afghangirl,
I have sent you an email.
Kind Regards,
Cameron Perry
Finance Consultant
F.R. Perry & Associates
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044Hi Afghangirl,
Unfortunately, there is no way to be sure about council approval until you submit a permit application, and for this you will need plans and a site survey (if you are subdividing). However, you don’t need to spend thousands. You should be able to get some sketches done by a good draftsman for a few hundred dollars. I would also suggest you engage the services of a planning consultant to assist you with this process, you can recieve some preliminary advice as well as an assessment of council’s policy pretty cheaply. At the end of the day, sadly, you will need to wear some financial risk if you’re going to develop but you can reduce this risk considerably by taking the right steps early in the process.
Kind Regards,
Cameron Perry
Finance Consultant
F.R. Perry & Associates
Property, Finance and Town Planning Solutions
Ph (03) 9662 1999
Fax (03) 9662 2044Hi Cama 20,
It depends what you want to research. As Michael suggested, Residex provided some good reports. You can get information on housing prices and trends by suburb, as well as some demographic and economic trends that you might find relevant to the property market at the ABS website, http://www.abs.gov.au.
You can also get some good information from some of the council websites.
I hope this has been of some help.
Regards,
Cameron Perry
Finance Consultant
F.R. Perry & Associates
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044Richard,
That’s amazing! I haven’t seen any bank over there that would offer a buy to let mortgage for an expat higher than 85%. Of course if you were re-locating back to Scotland and were a British citizen, and were moving into the property it would be different.
Kind Regards,
Cameron Perry
Finance Consultant
F.R. Perry & Associates
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044Hi Landt,
Yes you would need to go through a UK bank. No Australian bank will lend against overseas property. You could get a 75% lend through a couple of major banks, and possibly 80% through some smaller lenders.
Kind Regards,
Cameron Perry
Finance Consultant
F.R. Perry & Associates
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044Hi Landt64,
It is certainly possible to obtain a loan in Scotland for a foreign national. If you hold a UK passport, it would be a little easier.
Kind Regards,
Cameron Perry
Finance Consultant
F.R. Perry & Associates
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044Hi McCoz,
Whether or not the subdivision would go through easily depends on a number of factors, such as any overlays affecting the site, zoning, easements, size of the property and the character of the area. If you require any preliminary planning advice, my firm provides town planning services as well as finance, and I would be happy to be of assistance.
Kind Regards,
Cameron Perry
Finance Consultant
F.R. Perry & Associates
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044Hi Jenny,
In answer to your first question, yes, construction loans by their nature are generally paid in stages, typically around 5 installments, but can go up to 7. I will leave the second question to those with more developing experience.
Kind Regards,
Cameron Perry
Finance Consultant
F.R. Perry & Associates
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044Hi Microbubble,
Lenders in Australia are far more attuned to lending on investment property than UK lenders and you can get up to 100% of the purchase price through a major lender (106% of the purchase price for a non-major lender), and the rental is counted in your serviceability. However, as a foreign national the maximum you could get would be 80%. You require approval from the Foreign Investment Review Board and you’re away. Feel free to contact me if you need any assistance.
Kind Regards,
Cameron Perry
Finance Consultant
F.R. Perry & Associates
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044Hi Serkan,
In finance I wouldn’t ever say anthing is impossible, but this is about as close to it as it gets.
Regards,
Cameron Perry
Finance Consultant
F.R. Perry & Associates
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044Hi Janus,
Sorry to be the bearer of bad news, but to my knowledge you can forget it. I’ve been researching international finance since the start of the year, and the advice I have received suggests that Japanese banks are extremely reluctant to lend to Japanese people, let alone foreigners. No Australian bank will lend against foreign property (with the exception of New Zealand). If you could have a Japanese person go guarantor that may be your only chance, but it is still extremely unlikely.
Cheers,
Cameron Perry
Finance Consultant
F.R. Perry & Associates
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044Hi Nats,
Each council’s planning scheme will have a Municipal Strategic Statement which sets out areas allocated for high density. If your block is in a high density area it is more likely that you will be able to sub-divide and put units on the block. I’m not sure about other states as planning systems are unique in each state, but in Victoria, planning is quite a subjective profession. Each design will be looked at on its merits and the particular design and how it fits into the council’s strategic plans for the area will determine if you can get council support. I suggest you engage the services of a planning professional and/or designer experienced with unit developments.
Good luck,
Mortgageman
Cashpoor,
Try Footscray. It is in a good location, close to the city and borders trendy suburbs in Yarraville and Kensington. Prices are still relatively cheap due to its reputation as a centre for heroin peddling and high crime rate. However, heroin peddling and crime has not stopped St. Kilda and Collingwood from becoming expensive suburbs. Prices are already not really cheap, but much cheaper still than surrounding areas. I hope this helps.
Regards,
Cameron Perry
Accredited Mortgage Consultant
F.R. Perry & Associates
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044Robert,
I don’t think you did answer the question. To further elaborate, it is only investors from “broad tax countries” ie) Australia, Canada, UK, maybe 1 or 2 others, who are able to be taxed in their own country and all of these countries have higher income tax rates than the US so most investors would pay their tax in the US. In any case even if they are not taxed on their income, international investors putting their money in US property means more money being put into the US economy. I fail to see how this can be a bad thing for them!!!
Regards,
Cameron Perry
Accredited Mortgage Consultant
F.R. Perry & Associates
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044Robert,
How can encouraging international investment have negative effects on the US economy?
Regards,
Cameron Perry
Accredited Mortgage Consultant
F.R. Perry & Associates
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044Robert,
To answer your questions:
1. Yes
2. You can either get taxed in the US or Australia on your returns, but it makes sense to be taxed generally in the US due to their lower rates.
3. None if you pay US tax.I suggest you contact Active Financial http://www.activefa.com if you want to find out more about the tax ramifications of investing in the US as they specialise in this area.
Hope this helps.
Cheers,
Cameron Perry
Accredited Mortgage Consultant
F.R. Perry & Associates
Level 13, 30 Collins St
Melbourne VIC 3000
Ph (03) 9662 1999
Fax (03) 9662 2044Be VERY VERY careful in dealing with people advertising US properties in AUD. My brother discovered one such spruiker advertising properties for around $A48,000 and found the exact same property advertised on a US real estate site for $US13,000, or around $A17,000. The yields sound good on the surface but you would be buying at close to 300% above market value!! If you are looking to buy in the US either make sure you do a mountain of research or speak to someone trustworthy such as Westan. I know for a fact a number of people have purchased property of him and he is very reliable. I believe Mic and Debbie at Hunter House Hunters are also sourcing properties over there and would be a reliable point of contact.
I’d be very careful. I know of one person advertising properties in the United States who is actually marking up the properties by around 300%.
As Redwing suggests, you should contact Westan if you are interested in the US.
Regards,
Cameron Perry
Accredited Mortgage Consultant
F.R. Perry & Associates
Ph (03) 9662 1999
Fax (03) 9662 2044Minimum loan amount $50,000
Monthly Admin Fees $10
No application fee for loans above $100,000
Cheers,
Cameron Perry
Accredite Mortgage Consultant
F.R. Perry & Associates
Ph (03) 9662 1999
