Hi Guys
New to this forum, but like what I see. Hopefully you guys can fill me in on some info I’m struggling to find.
I’m new to Australia and have just been given a 2 year temporary residents business visa. I am in rental accommodation at the moment, but want to buy something. I know there are rules about what I can and can’t buy – but just to clarify:
1. Vacant Land which must be built on within 12 months.
2. A brand new apartment/house which has never been lived in before.So, armed with that information, I sought out some land which I have really come to like. They’re looking for $500,000 for the land on 1400m2. Its a good price for its location, but is quite steep with a gradient of 1 in 3. I’m guessing it would cost about $1m to build the house, and the total value of the house and land when complete should be about $2m.
So the questions I have are these?
1. As a temporary resident, who is likely to help me finance a self-build of this type? Are there specialist mortgage companies that deal with this type of situation.
2. In terms of deposit, I have a place in South Africa worth about $125k, but don’t want to sell that if I can help it. My understanding is that the mortgage company would look at the total value of the completed project, and release funds for various stages, knowing it’s going to end up with a 75% LTV situation. Is this the way it works here?
Any pointers as to who to talk to would be most appreciated.
Also, does anyone know of any really good architects/builders who are specialist in steep gradient builds.
Cheers
AndreHi Andre
Some lenders offer finance to non residents up to 80% LVR with no restrictions on security, however this is subject to approval from the Foreign Investment Review Board (FIRB)There are many variables to take into account that will effect the lending criteria,
E.g., the length of time you have you been residing in Australia,
Country of residence, (lenders will not lend to residents of certain countries)
In some cases the max LVR will be subject to the loan amount.If you haven’t already done so, I would suggest you contact the Foreign Investment Review Board for clarification based on your circumstances. Cheers.
Steven Crane
Mortgage BrokerMobile Mortgage Market
Ph: 0402483216
[email protected]A question… Can a non resident enter into a lease option arrangement with a view to permenant residency and then buying ‘down the road’ as a permenant resident? Methinks I should contact the foreign investment review board. However if someone has had experience selling a Lease Option to a non resident, confirmation would be very helpul. To clarify… I am selling the lease option and have had non residents call as buyers.
Wondering if this might be a way around the requirements for Andre.
Thanks
Algenon [cap]Hi
Andre, sorry I can’t help you much with your finance question. However, Algenon I can help you with what the FIRB has to say about Lease/Options to non-residents.
If a lease for a residential property is less than 5 years (including any possible extensions), FIRB approval is not required for that lease. If longer than 5 years then it is required.
The FIRB also suggest that when writing up the Option you include wording which only allows the Option to be excercised if the Option holder is granted permanent residence prior to the expiry of the Option.
I hope this helps.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
I imagine it will be very hard for a temp visa holder to get finance especially for a construction project with a major lender – (but I am only guessing a I haven’t looked into this).
There are small funders that will fund on end value, gross realisation lending. The LVRs are usally around 65% with interest rates of around 12%pa. These lenders probably wouldn’t care too much about your visa status as long as you had FIRB approval.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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