She will be treated as a dependant whether she is included or not.

The lender will still classify it as 2 Adults in the household.

If you wish to add her to both the loan and title then you would need to have the purchase contract amended or depending on which State you are in the Nominee Clause showing her inclusion and the letter of offer and mortgage documents (if issued) redone.

Given the time of year might not be such a good idea.

Sally

Been a while since i did a loan for a client to purchase in Cyprus (in fact back in my UK days) but it is not that difficult just a mountain of paperwork.

Cyprus is not only a good place to buy but as a Mediterranean island it is mature and sophisticated when it comes to its  mortgage market.  What this means is that there’s a great deal of choice of mortgage lender and also a broad choice of mortgage type as well.

From memory lodoc or non status loans are not available however the two biggest Banks by far are the Bank of Cyprus and Laiki Bank both of who used to lend to Non Residents. Looking at a maximum LVR of around 70%.

Hi HelpR

You are correct many lenders will treat it as a commercial loan but dependant on the size of the acreage, location and type of property on the acreage a residential loan is still possible.

Of course LVR is also an issue as mortgage insurers are not great lovers of big acreage propertties however the above is a guideline.

If you want to tell me more about the type of property and the approx location i can give you some guidelines as to the sort of loan you will be looking at.

It is funny all of a sudden in the last 6-8 weeks we have received more finance enquiries from Expats than we would have done in the previous 6 months.

Interest rates on the decline and the stable property market makes Australia a great place to buy affordable housing.

My strategy has always been to purchase + cash flow properties as use this additional income to cover any shortfall on my capital growth portfolio. Thanfully over time these properties have of course become cash flow + and now the income stream is very nice thank you.

Couple of things to bear in mind with regards to the financing of these loans:

1) Set up the loans with offset accounts and use these accounts to deposit your rents and even lump sums from your income into subject to the exchange rate at the time.
2) Subject to the exchange rates look at a foreign currency loan. Currently for a Singapore Libor rate loan you are looking at a variable rate of around 4.25%. HK Libor is a little more expensive at 4.73%.

Not sure what currency you are getting paid in but unfortunately Yen is not an offered currency at the moment.

3) Understand that as a non resident you will be able to offset the rent being received against the interest however will only be unable to negative gear this against your current non resident income. Any losses can be quarantined against future Australian income.

Depending on your income and the prospects over the next few years I would use the unencumbered property to gear against for deposits to purchase multiple properties. As most lenders will not go past 80% LVR (90% is still available but of course LMI is payable) you could still purchase a few properties with the available equity that you have let alone any of your own cash funds you look to introduce.

In the current climate many lenders will want to shave your income by a margin before converting it to Aussie Dollars but that again shouldnt cause a problem.

One thing to bear in mind being overseas is the time lenders are taking to process applications especially given the distance.
Allow yourself plenty of time and get your mortgage broker to start the ball rolling well in advance to when you think you are going to buy.

Some lenders will

Yes as i say the 5 majors vary including your current owner.

Raymond, i think your 1% is slightly optimistic.

4 of the 5 majors use minimum 1.5% above SVR and all 5 use a different HPS figure.

1 of them uses the actual repayment rate if the loan is fixed whilst the others still use the variable rate.

The percentage liability of your credit card limit varies slightly with each of them with 2 using a nil monthly amount of you repay the debt each month and can evidence this over a 3 month period.

1 adds on a percentage of the monthly repayment as a further buffer and we havent even got onto the percentage of rental income, FAS or other considerations.

All of this assumes the client is PAYG and not S/E as that is a further pandoras box.

Maybe not confusing but varies considerably from lender to lender.

Good call donnac.

Maybe after you check with olde Neil you might like to check the Qld Office of Fair Trading website. DB and the OFT have had more than words over the last few years.

Wonder if she is still promoting Buffalo as the next big investment area !!!!!

Dave

I think it depends on many things.

If a $2 Company was providing the Guarantee then I would be a wee bit nervous about buying the property as you will probably find that the valuation on the property factors in the increased rent and the price is inflated accordingly.

If however a rental assessment from a couple of local managing agents confirm that the rent being guaranteed is about right then perhaps there are other considerations. 

Look at the area the price being paid and the demand for tenants. You dont want to find after 2 Years there is No demand and you cant rent the place for love nor money.

Who is providing the Guarantee ? Is it the vendor or is merely a lease in place for 2 years from the current tenants.

Remember if it is a 2 Year lease you may not be able to increase the rent for the next 24 months if the area is moving along nicely.

All i would say is go in with your eyes open do your due diligence and then make up your own mind.

Hi Dave

The amount of equity you have has little bearing on the amount you can borrow unless it is under a lodoc style loan.

Banks work out the amount they will lend you under a variety of serviceability calculations working out your income and expenditure.

In a nutshell they will take your net monthly income add to this the expected rent at say 80% of the Gross received figure and subtract your monthly mortgage committments (usually worked out at say an interest rate of 1.5% higher than the standard variable rate) a percentage of your credit card limit and end up with a monthly surplus.

They would then divide this figure by the monthly factor of Principal & interest for the interest rate + say 1.5% (Maybe $8.34 / 000) and this would give you a total number of thousands you can borrow.

This rather crude example does not take into consideration any negative gearing addback or other factors but will at least give you a guide.

After you have worked out the amount to borrow you then need to ensure that your Broker structures the loan in such a manner to ensure that the securities are not cross collateralised and are set up to maximise your tax deductions and to provide you with maximum flexibility.

Dont think it is a matter of anything actually being on PE radar just a matter of wishing thinking.