Another question for you wise ones…
If you have property OS, do banks consider this an asset (which you can borrow against) much the same as property in Australia? Any other points of difference?
Cheers
ETThe only ocassion that an Australian lender would consider it as an Asset for loan purposes is if that lender had an operation in that Country and then only on rare cases.
Lets say you have property in Sydney and want to borrow against it for a loan in the US then the likes of Citibank would just say NO.
New Zealand would a possibility but then only with certain lenders.
If you want to tell us a little more of what you are trying to achieve I might be able to point you in the right direction.
If it involves personal details then feel free to email me rather than discuss it on the forum.
Cheers Richard
Ph: (07) 3720 1888
[email protected]
http://www.yourstatefinance.comIP funding and US property finance
our specialityRichard Taylor | Australia's leading private lender
The only ocassion that an Australian lender would consider it as an Asset for loan purposes is if that lender had an operation in that Country and then only on rare cases.
Lets say you have property in Sydney and want to borrow against it for a loan in the US then the likes of Citibank would just say NO.
New Zealand would a possibility but then only with certain lenders.
If you want to tell us a little more of what you are trying to achieve I might be able to point you in the right direction.
If it involves personal details then feel free to email me rather than discuss it on the forum.
Cheers Richard
Ph: (07) 3720 1888
[email protected]
http://www.yourstatefinance.comIP funding and US property finance
our specialityRichard Taylor | Australia's leading private lender
Hi ET,
Australian based lending institutions will not take OS property as security over a mortgage.
Property held offshore will be classed as an asset and any subsequent mortgage will be deemed a liability, Cheers.Regards
Steven
Mortgage BrokerMobile Mortgage Market
Ph: 0402 483 216
[email protected]
http://www.mobilemortgagemarket.com.auPLEASE note comments made should not be taken as specific taxation, financial, legal or investment advice.
Just for the sake of hypotheticals, if an ex-pat had a loan and property overseas, then returned to Oz, would that affect his ability to get a loan in Oz, for a property in Oz?
Munjy
hi munjy
simple answer if you told them (yes)
but it depends on the structure used to purchase the overseas property.
The above if you told them is dependant on the structure used and if you would need to inform them, company, trust or foreign entity.
This is not financial advice and should not be seen as said advicehere to help
Hey ET
You cannot borrow directly against it, but what you can do is get an overseas bank to issue you a bank guarantee to and Aussie Bank and borrow against that provided the OS bank is a credible one.
Yes Home Loans Pty Ltd
Is your mortgage advisor accredited with the “Non Bank Lender of the Year?”
(Money Magazine 2005).You cannot tale security over an overseas investment and borrow against it here. However any of shore investment shold be treated as a separate income stream. The good news is that if you buy in a major city in New Zealand and look to buying houses, the banks in many cases will now lend up to 90% for foreign investors. It works both ways they cannot take security over your Australian Assets
Nigel Kibel
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Australian and New Zealand Property Researcher and education seminars
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Thank you for all your replies.
I was surprised to hear that the banks do not consider it, in this era of the ‘global’ economy. But the more I thought about it the more I can appreciate their reasons, Suriname wouldn’t be the easiest place to navigate a property transaction from I’m sure!
Thanks again.
Hi ET you might be able to try this one. Refinace your o/s property with an Australian bank in that country. This was recently suggested to me when when I looked at buying a +cashflow IP in Japan and wanted to have the rent used as declared income for buying another IP in Australia. I didn’t go through with the deal so don’t know if it would work. Maybe some others can shed some more light on this one.
C2
how do you think a Bank would go about reclaiming that asset in the other country, can u imagine the legal fees they would chalk up, any bank that does that i would be wary of they must be desperate to lend money, and on the way to bankruptcy themselves
when the going gets weird the weird turn pro
Kiwiduvet, If the bank in mention is set up in the country you wish to buy in then I can’t see why they would have any problems ‘reclaiming assests’. ANZ and National are both set up in Japan and don’t appear on the verge of bankruptcy.
C2
C2
Yes both the Anz and NAB have representation in Japan but neither of them will take Japanese security into consideration for lending in Oz or the Australian security into consideration when you are seeking a loan in Japan.
Cheers Richard
Ph: (07) 3720 1888
[email protected]
http://www.yourstatefinance.comIP funding and US property finance
our specialityRichard Taylor | Australia's leading private lender
Hi Richard, I know that has been the position for a few years but recently I was in contact with someone who had taken out a loan with one of the banks mentioned to buy 2 IP’s. One in each country and both on the same loan. The bank accepted rental returns expected from both properties. I haven’t had the chance to find out how it was exactly done but when I know I will let you know.
C2
We deal with both lenders at National level with our wrapping business and I think someone may have confused you.
NAB and ANZ Bank will not lend here in Oz taking a Japanese property as security or vice Versa.
They may well have set up a LOC in either Country for the purposes of purchasing in another but certainly will never take the security in one and the loan in another.
Cheers Richard
Ph: (07) 3720 1888
[email protected]
http://www.yourstatefinance.comIP funding and US property finance
our specialityRichard Taylor | Australia's leading private lender
I fully understand what you are saying Richard and that is why I was surprised when told this information. Apart from an LOC can you think of any other reasons or ways this may have been accepted/done?
C2
NO
It will not have been done.
Anz won’t even lend on NZ property here in Oz.Cheers Richard
Ph: (07) 3720 1888
[email protected]
http://www.yourstatefinance.comIP funding and US property finance
our specialityRichard Taylor | Australia's leading private lender
Hi Richard, my gut feeling is that your right because I have been trying to sort this out for a few years, but it would be very nice if we are both wrong and someone has found a way to do it. The person involved wont be back in Japasn until next month and I will find out exactly what the situation is. If it can be done do you want the information?
C2
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